Answers · UK 2025/26
What happens to my pension when I leave a job?
Your pension pot remains yours when you leave. It either stays in your former employer's scheme as a "deferred pension," or you can transfer it to a new employer's scheme or a personal pension. You never lose the money — but you must keep your contact details updated.
Full answer
When you leave an employer, your pension rights depend on the type of scheme: **Defined Contribution (DC) / workplace pension (e.g. NEST, The People's Pension, Aviva):** The pot — your contributions plus your employer's contributions plus investment growth — stays invested with the scheme provider. You can leave it there as a deferred pot until retirement, or transfer it to a new employer's scheme or a personal pension (SIPP). There is no charge for transferring most DC pots. **Defined Benefit (DB) / final salary scheme:** You accrue a deferred pension based on your service and salary. You can leave it in the scheme and draw it at the scheme's normal retirement age, or request a Cash Equivalent Transfer Value (CETV) to move it to a DC scheme. Transferring DB benefits above £30,000 requires regulated financial advice — and in most cases, staying in the scheme is the better outcome. **Small pots (£10,000 or less):** You may be able to take the whole pot as a lump sum ("small pot payment" or "trivial commutation") from age 55 — 25% is tax-free, the rest is taxed as income. **Lost pensions:** The HMRC Pension Tracing Service (0800 731 0193 or gov.uk/find-pension-contact-details) can help you locate old workplace or personal pensions by employer name. The Pensions Dashboard (rolling out 2025–2026) will eventually show all your pensions in one place. **Safeguarded benefits:** Never transfer a DB pension with safeguarded benefits over £30,000 without taking independent financial advice — the law requires it, and the adviser must confirm the transfer is in your interest.
Try the calculator
Related guides
This answer is informational only and does not constitute financial, tax or legal advice. Figures are for the 2025/26 UK tax year. See our methodology and sources.