According to a new study by Wealthify, workers who change jobs frequently earn higher salaries and have larger pension pots than their counterparts that stay in the same role for a longer period of time.
According to the study, which included 4,000 UK adults and surveyed them, individuals who had changed jobs at least four times over the last decade, referred to as “frequent job-hoppers”, earn an average salary of PS39.276 per year. This is 31 percent more than the average PS30,088 salary of all other workers.
Job hoppers also reap the benefits of frequent job changes. They accumulate an average pension pot of PS105.538 compared to PS89.762 for average workers. The average pension pot of those who changed jobs just once in the same time period is PS93,234 for those with only one change.
The trend of job-hopping is dominated by younger workers
Job hopping used to be frowned upon but is now seen as an effective strategy for career progression, especially among younger generations. According to the study, 18% of 18-34 year-olds fall into this category. The trend is growing also among older workers. 11 percent of those between 35 and 54 years old reported four or more changes in jobs over the past 10 years.
Job hopping is attractive because of its financial potential, such as higher earnings and better retirement savings. Wealthify data shows that job changers are more likely than others to see salary increases and have greater career opportunities, especially in competitive markets.
Frequent job changers are faced with unique challenges despite the financial benefits. Wealthify discovered that job hoppers are twice as likely to have multiple pension pots as the average worker, which increases the risk of losing track retirement savings. Wealthify advises job-hoppers to consolidate pension pots or to implement strategies to track savings in order to avoid losing out on benefits.
