Pension checklist for changing job
By Kirsten Hastings, 12 Jun 18
It can be easy to forget about pension benefits when you are swept up in the excitement and stress of changing job. But as workplace pensions can be very generous, it pays to keep on top of any pots that have been built up, says Fidelity International’s Ed Monk.
Fidelity’s associate director for personal investing has created a checklist for keeping your pension in shape when changing job.
“Ideally, you understood the pension benefits on offer from your new employer when you accepted the job,” Monk said.
“It is crucial to know how much you will be contributing, how much your employer will be contributing for you and how much these are boosted by tax relief. Contributions are usually expressed as a percentage of your salary.
“If you’ve changed jobs, you should endeavour to maintain the cash amount that you save, and increase it if you can. Do the sums and work out if you need to increase your contributions from the default level that applies automatically. If you do, your new scheme can tell you how.
“Many schemes will match any increased contributions you make, up to a certain level. Take advantage of this generous benefit if you can.”