Getting a new job

There are lots of reasons to change your job, but we think that most of them fall into two categories – things that aren’t right where you are and the possibility of getting more somewhere else.

For the first category, you might not see eye-to-eye with your boss, for example, or be uncomfortable with your employer’s corporate culture, particularly if it has changed recently. You might also lack a challenge in your current role or have far too much to do. It’s easy to start overworking and most people can manage it for a while, but in the long run it can be bad news for your physical health and your mental state.

On the other hand, there might be greater scope for career progression at a new employer – perhaps they’re growing quickly and have more space for advancement or just a more clearly defined process for developing their employees. They may also offer a more interesting role, with greater challenges to keep you interested, or simply the security that comes with a permanent position (or just a longer-term contract).

It’s even worth considering location, as anything you can cut out of your commute is like giving yourself more hours in the day. If you can walk or cycle to a new job there are even more advantages, as you’ll be helping your health at the same time.

Then, of course, there’s the big reason to change job – salary. While money isn’t everything, if someone wants to give you more of it for doing a similar role, assuming all other things are equal, it would seem a good idea to let them.

However, this doesn’t mean that money should always be one of your reasons to change job. Many people are willing to take pay cuts if this opens a new door for them or leads to a role that will be more fulfilling.

That said, whatever the salary situation, there are some other financial points to keep in mind. First of all, you do need to look at the overall money situation. Will you have any additional expenses with your new job, such as travel or parking? These are unlikely to be a deal-breaker, but you need to factor them in, so you can make sure you’ll have enough going into your bank account each month. Our simple budget tools can help you take control of your day-to-day finances and understand what’s coming in, what’s going out and where it's going – so you can prioritise spending and saving..

Then, it’s worth considering how your new benefits package compares to your old one. If it’s better, that’s great news. If it’s worse, will you miss out on something you need – such as health insurance, disability cover or life assurance – or something you’d like to have, such as a share scheme? You may also want to check the maternity or paternity policy if you’re thinking about starting a family or adding to it – and it’s a good idea to know what the sickness policy is as well.

Finally, there’s timing. If you have a bonus on the way, you wouldn’t want to reject a new job, but it may be worth waiting to receive the extra money before you jump ship.

Pensions can sometimes be overlooked, but they are a valuable part of your earnings. Some employers will put in a generous amount without expecting much from you, while others will match your contributions up to a high level (such as 10% of your annual earnings). In both cases, this is like earning a higher salary, even if it’s not part of the headline figure. This is why it makes sense to consider the pension as part of the total package your employer offers you – and if you’re tempted by the role, make sure you have plans to benefit from this opportunity as much as you can.

Then there’s the pension you leave behind.

If you’ve worked for more than one employer, it’s likely you’ve got more than one workplace pension. That can be a lot to keep track of so make sure to list all your retirement savings sources, even those you may have forgotten about. You can track down any previous personal or workplace pensions using the government’s free Pension Tracing Service.

If you are leaving, or have left, a job that had a Fidelity Workplace Pension, there are a few options available to you. You could leave it with us, and it will remain invested or you may want to consider the option of moving your Workplace Pension into a Fidelity SIPP (Self Invested Person Pension). With a SIPP you have the flexibility to transfer your entire pension, a proportion of is and make additional lump sum payments whenever you like. This is subject to your specific circumstances and pension scheme rules.

You also have the option of transferring your pension to your new employer or another provider. Moving a pension is a big decision so we recommend that you read our transfer factsheet and speak to an authorised financial adviser before making a decision. Here are some important points that you need to think about before deciding to move your pension.

If you are now self-employed you may be able to continue contributing to your Fidelity Workplace Pension and get tax relief although the way this will be applied will depend on the type of scheme you are in.

If you have changed jobs, or you’re about to, congratulations! We hope you found everything in this short guide useful. Here are five final suggestions about your company benefits to help you start this new opportunity on the right foot.

1. Enrol in your employer’s workplace savings pension as quickly as you can to make sure you don’t miss out on any contributions.
2. If your employer matches your contributions, try to increase what you’re putting aside. It’s like an instant pay-rise!
3. Check your health insurance, if your employer offers it, and make sure you have the right level of cover for your needs.
4. Review any life assurance and disability cover to see if it’s enough protection for you and your family.
5. Check who the beneficiaries will be on your pension and insurance policies. We know it’s not the nicest thing to think about when you start a new job, but once it’s done, you don’t have to look at it again (unless your situation changes).