What Happens to My Workplace Pension When I Change Jobs?

When you leave an employer, the workplace pension you built up stays open and continues to be invested — it’s yours. You stop receiving employer contributions, you can’t pay in further (in most schemes), but the existing pot keeps growing through investment returns until you access it from age 55+ (rising to 57 from April 2028). You can transfer it to a SIPP, your new employer’s scheme, or leave it where it is.

This is the practical reality of changing jobs and what each option means.

The basics — what changes when you leave

When you leave an employer:

1. The workplace pension stays in your name. You don’t lose it.
2. Contributions stop. Neither you nor the employer can typically pay in further.
3. Investment continues. The funds in your pot stay invested and grow.
4. Fees usually change. Many workplace schemes have a “pricing tier” for active employees that switches to a higher tier for “deferred members” — sometimes adding 0.10–0.50% to the annual fee.
5. You become a “deferred member” of the scheme until you access the pension or transfer it out.

Your new employer enrols you in their own workplace pension (subject to auto-enrolment rules). The new pension is separate from the old.

Three options for the old pension

Option 1: Leave it where it is

The simplest path. The old pension stays with the old employer’s scheme provider. You receive annual statements; investment continues automatically.

Pros:

• No transfer paperwork.
• No risk of losing scheme-specific benefits.
• Cost is whatever the scheme’s deferred-member fee is.

Cons:

• Multiple pots to track over time.
• The deferred-member fee tier may be higher than active.
• Investment choices may be limited compared to a SIPP.

Option 2: Transfer to your new workplace pension

Some workplace schemes accept transfers in. You move the old pot into the new scheme, consolidating with your current contributions.

Pros:

• Single pot to manage.
• Same investment choices as your active workplace pension.
• Often the current scheme’s active-employee fees apply to the transferred-in funds.

Cons:

• Not all schemes accept transfers in.
• You lose any unique features of the old scheme.
• Transfer takes 4–12 weeks.

Option 3: Transfer to a SIPP

Move the old pot to a Self-Invested Personal Pension that you control.

Pros:

• Wider investment choice (individual shares, ETFs, funds across providers).
• Often lower fees on broad index funds.
• One place to consolidate multiple old pensions.

Cons:

• Need to manage investments yourself.
• Platform fees may apply.
• Transfer process and 4–12 week timeline.

Defined contribution vs defined benefit

The decision depends heavily on the pension type.

DC pensions (most modern workplace pensions)

These are simple to transfer between providers. The transfer value is the current pot size. You can move it freely between DC pensions without losing the value.

DB pensions (older and public-sector schemes)

These promise a future income, not a pot. If you transfer, the scheme calculates a Cash Equivalent Transfer Value (CETV) representing the lump sum equivalent of the future income stream.

Critical: DB transfers are almost always a bad idea. The guaranteed lifetime income, inflation linkage and spouse pension are usually worth far more than the CETV. UK regulators require regulated advice for any DB transfer over £30,000.

If you have a DB pension from a previous job, the default action is leave it alone. Get regulated advice before considering any transfer.

How to find old workplace pensions

Many people lose track of old pensions over the years. Tools:

• Pension Tracing Service (free): gov.uk pension trace.
• MoneyHelper Pensions Dashboard (rolling out 2026/27): a unified view of all your pensions in one place. [VERIFY: confirm current rollout status of the Pensions Dashboard.]
• Old P60s and payslips: usually show the workplace pension provider.

What about Pensions Dashboards?

A 2024–2026 initiative is building Pensions Dashboards — a digital service that will let you see all your workplace, personal and state pensions in one place. The system is being phased in with major pension providers required to connect by specific dates.

When fully rolled out, this dramatically simplifies tracking old pensions. As of 2026/27, the system is partial — some providers connected, others still being onboarded. Check MoneyHelper’s Pensions Dashboard page for the current status.

What if I never returned to the UK?

If you leave the UK permanently after working here for a few years, the workplace pension stays accessible. You can:

• Leave it in the UK and draw it from age 55+ (subject to tax in your country of residence).
• Transfer it to a QROPS in your new country (subject to the 25% Overseas Transfer Charge unless exempt).

See our guide on what happens to your pension if you leave the UK.

When transferring is worth doing

A few cases where transferring an old workplace pension makes sense:

1. Old DC scheme with high fees. A 1.0%+ deferred-member fee can erode returns significantly over decades. Modern SIPPs often charge 0.30% or less.
2. Multiple small pots to consolidate. 5 pots of £20,000 each = £100,000 across 5 providers. One SIPP makes admin much easier.
3. Poor fund choice in the old scheme. If the old scheme’s default fund underperforms or you don’t like it, transferring to a SIPP with better options is worthwhile.

When it isn’t:

1. Old DB scheme. Don’t transfer.
2. Pension with unique features (guaranteed annuity rates, protected tax-free cash, with-profits accumulation). Check before transferring.
3. Small pension under £10,000 with a particularly low transfer-out fee — might not justify the admin.

Worked example: leaving a job at 38

Jaspreet leaves her marketing job at 38, having built up a £55,000 pot in the workplace pension over 6 years.

Her options:

• Leave it in the existing scheme. Continues to grow at the deferred-member fee rate (say 0.45% vs the active 0.30%).
• Move it to her new employer’s pension if they accept transfers — likely worthwhile if active-employee fees are lower.
• Move it to a SIPP to consolidate with another old pension she has from a previous role.

She chooses the SIPP route, transfers both old pensions (£55,000 + £18,000 = £73,000 total) into a Vanguard SIPP with a single global equity index fund. New employer’s pension receives her ongoing contributions in parallel. Reviews both annually.

Internal links

• How to combine old pensions from previous jobs UK
• Can I have a SIPP and a workplace pension at the same time?
• What is the annual allowance for pension contributions?

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This guide is information, not regulated financial advice. Pension transfers can have lasting consequences — get regulated pension advice before transferring any pension with unusual features or any defined benefit pension.