Changing jobs – and especially moving into a new industry – can be exciting. New colleagues, new challenges, and perhaps a completely different working culture await. But amid all the change, there’s one area that’s easy to overlook: your pension. Your workplace pension can change significantly when you move jobs, and that can affect your savings, your insurance cover, and your long-term financial security. Here’s what you need to know when switching industries in the UK.

Check what you already have

Before you start your new role, take some time to understand your current pension arrangements. You can use the Government’s Pension Tracing Service to find details of any old workplace pensions, and log in to your State Pension forecast on GOV.UK to see what you’re on track to receive from the state.

Make a note of:

• Which pension providers you have.
• How much you and your employer are contributing.
• How your money is invested and what fees you’re paying.
• Any additional benefits, such as life cover or income protection.

Having this overview will make it easier to compare your existing arrangements with what your new employer offers.

Different industries, different pension schemes

In the UK, most employees are automatically enrolled into a workplace pension if they meet certain criteria. However, the details can vary widely between sectors and employers. Some industries – such as the public sector – have generous defined benefit (final salary) schemes, while most private sector employers offer defined contribution schemes, where your retirement income depends on how much is paid in and how your investments perform.

If you’re moving from the public to the private sector, you may notice a big difference in contribution levels and benefits. Public sector schemes often include higher employer contributions and guaranteed payouts, whereas private sector schemes may offer more flexibility but less certainty.

Ask your new employer:

• What type of pension scheme they offer.
• How much they contribute compared to your own contributions.
• Whether you can choose your investment options or provider.

What happens to your old pension?

When you leave a job, your old employer stops contributing to your pension, but the money you’ve built up remains invested. You can usually leave it where it is, or you can transfer it into your new employer’s scheme or a personal pension.

Consolidating pensions can make it easier to keep track of your savings and may reduce fees, but it’s not always the best option. Some older schemes have valuable benefits or lower charges that you could lose if you transfer. Always check the details carefully and consider getting professional advice before making a move.

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Don’t forget the protection benefits

Many workplace pensions include more than just retirement savings. They often come with additional cover such as:

• Life assurance – a lump sum paid to your family if you die while employed.
• Income protection – payments if you’re unable to work due to illness or injury.
• Critical illness cover – a one-off payment if you’re diagnosed with a serious condition.

When you change jobs, these benefits may stop or change. Make sure you’re not left without cover during the transition. Some providers allow you to continue certain protections privately, or you can arrange temporary cover until your new benefits start.

Consider personal contributions

If you’re taking a break between jobs, becoming self-employed, or joining an employer without a pension scheme, you can still keep saving. You can open a personal pension or Self-Invested Personal Pension (SIPP) and make contributions yourself. You’ll still receive tax relief on what you pay in, which can make a big difference over time.

Even small, regular contributions can help you avoid gaps in your retirement savings and keep your long-term plans on track.

Get professional advice

Pensions can be complex, and the right decision depends on your personal circumstances. Many pension providers and financial advisers offer free or low-cost guidance. You can also use MoneyHelper, a government-backed service, for impartial information.

A financial adviser can help you:

• Compare your old and new pension schemes.
• Understand how changes affect your retirement income.
• Ensure you have the right level of protection and investment strategy.

A bit of expert advice now could mean thousands of pounds more when you retire.

A career change is also a financial fresh start

Switching industries isn’t just about new opportunities – it’s also a chance to take control of your financial future. By reviewing your pension arrangements early, you can avoid unpleasant surprises and make sure your savings continue to grow in a way that suits your goals.

So, when you sign that new contract, don’t forget to ask: What happens to my pension? It’s a small question that can make a big difference to your future.