New research from Wealthify found that workers who frequently change jobs earn higher salaries and accumulate larger pension pots compared to their counterparts who stay longer in roles.
The study, which surveyed 4,000 UK adults, found that individuals who have switched jobs four or more times in the past decade – labelled as “frequent job hoppers” – earn an average of £39,276 annually. This figure is 31 percent higher than the £30,088 average salary of other workers surveyed.
Pension savings also benefit from frequent job changes, with job hoppers accumulating an average of £105,538 in pension pots compared to £89,762 for the average worker. Those who have changed jobs only once during the same period hold an average of £93,234 in their pension savings.
Younger Workers Lead the Job-Hopping Trend
While job hopping was once frowned upon, it is increasingly seen as a viable strategy for career advancement, particularly among younger generations. The study reveals that 18-34-year-olds are the most likely to engage in frequent job hopping, with 18 percent falling into this category. However, the trend is also growing among older workers, with 11 percent of those aged 35-54 reporting four or more job changes in the last 10 years.
The appeal of job hopping lies in its potential financial benefits, including higher earnings and improved retirement savings. Wealthify’s data indicates that frequent job movers are more likely to experience salary increases and greater opportunities for career growth, particularly in competitive job markets.
Despite the financial advantages, frequent job hoppers face unique challenges. Wealthify found that they are almost twice as likely as the average worker to hold multiple pension pots, increasing the risk of losing track of retirement savings. The UK currently has an estimated £33.1 billion in lost pensions, leading Wealthify to advise job hoppers to consolidate their pension pots – or implement strategies to track their savings to avoid missing out on potential benefits.
