Job-hopping could leave your child with bigger pension pot than yours

Parents need not worry that their children frequently switch jobs because research shows that their pension pots will be much larger in the long run.

Those who have moved jobs four or more times in the past decade tend to be younger, early in their career and change often to maximise their salary. A fifth of 18 to 34-year-olds have moved four-plus times with more than one in ten 35 to 45-year-olds doing the same.

Research by investment platform Wealthify shows serial job-hoppers have saved £12,304 more in their pensions than those who have moved job just once.

Frequent job-hoppers have an average pension pot worth £105,538 compared to £93,234 for those who have stayed put.

It means they are more likely, therefore, to have the amount required for a basic standard of living in retirement, which is currently £107,800, equivalent to an annual income of £19,300, according to the Resolution Foundation.

But Pension and Lifetime Savings Association figures show a pensioner needs £31,300 a year for a ‘moderate’ lifestyle and £43,100 for a ‘comfortable’ lifestyle and have saved a pension pot worth between £300,000 and £790,000.

Those who frequently switch jobs are also out-earning their peers with an average salary of £39,276 compared to £35,403 for those who have moved once. The average UK salary is £37,430.

Hospitality has the highest proportion of job-hoppers (28 per cent), followed by food and drink (22 per cent) and healthcare (22 per cent). Against that, just 3 per cent of employees in the utilities and real estate sectors have moved between jobs and 4 per cent in agriculture.

Employees in London have the itchiest feet with 19 per cent changing jobs more than four times followed by the North East (18 per cent) and the West Midlands (14 per cent).

The East Midlands (9 per cent), the South West (9 per cent) and Northern Ireland (6 per cent) have the lowest proportion.

Michelle Pearce-Burke, from Wealthify, said: ‘Being strategic about switching up your career at the right time can be great for boosting your earning power and growing your retirement funds.

‘Whether your salary bump is from a job switch or not, don’t miss the opportunity to make it count towards your future by putting a little extra in your pension if you can.’

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