Consolidating finances after a new year’s career change
A career change — whether it’s moving into a completely new sector, a promotion into a leadership role, or simply switching employers — is one of life’s major transitions. It brings energy, opportunity and a fresh start.
However, as much as you are excited about your new job, there are also major financial choices that you can make to define your future. That’s why effective career change strategies are essential — especially at the beginning of the year when many professionals reassess priorities and goals.
This blog covers everything you need to know about consolidating finances after a new year’s career change, including what to do with pensions, how to streamline your money management and whether you need a financial adviser to help you make the best decisions.
Why your finances matter after starting a new job
Starting a new job changes more than your commute; it can also change your benefits, earnings, workplace pension arrangements, tax position and long-term financial strategy. Many people focus on the thrill of increased pay or benefits, but it’s easy to forget the administrative and planning effort that underpins financial well-being in the long term.
To truly benefit from a new job, you should build a smart financial checklist that will help you methodically adjust your finances to match your new job.
Update your income, benefits and budget
Once your offer is signed:
- Confirm salary details
Ensure your employer has the correct tax code and payment dates. Look for opportunities like salary sacrifice schemes or enhanced pension matching.
- Understand new benefits
Different employers offer different benefits — from group life insurance and income protection to enhanced pension contributions. Take time to understand what you’re entitled to.
- Build a new budget
Adjust your monthly budget to reflect any changes in earnings, commute cost, childcare, or lifestyle expenses — and identify areas for savings. This new job financial checklist should be the foundation of your revised financial planning strategy.
Keep track of your pension pots
One of the biggest financial tasks after a career change is knowing where all your pensions are.
Where are your old pensions?
If you’ve moved jobs multiple times, it’s likely you have several pension pots with different providers. Tracking them down can be confusing, but it’s essential if you want a clear overview of your retirement savings. The UK government offers a free Pension Tracing Service which helps you discover old schemes using your employer’s or provider’s name.
What to do with old pensions
You essentially have three choices:
- Leave them where they are – This is fine if the schemes offer good benefits and are aligned to your future financial goals.
- Combine them into your new workplace pension – This simplifies management and reporting.
- Consolidate into a private or Self-Invested Personal Pension (SIPP) – Useful if you want greater control and to ensure things are invested in line with your plans for the future.
However — not all pensions should be transferred. Defined benefit (final salary) pensions, for example, often offer valuable guarantees and shouldn’t be moved without expert evaluation.
Why pension consolidation matters
Known as pension consolidation, bringing old pensions together can reduce admin, lower fees and make long-term planning easier. Many people find it simpler to monitor one pension pot rather than juggling several. But consolidation isn’t always appropriate if it means losing valuable benefits or guaranteed returns.
Understand pension transfers and risks
If you decide to move more than one pension into a single plan, there are important steps to follow:
- Check eligibility – Confirm whether your pension schemes allow transfers and what you might lose by moving them (especially benefits).
- Use pension tracing tools – The government can help you begin the process of tracking down and combining schemes.
- Watch out for scams – Only transfer funds directly using regulated providers; be wary of cold calls or unverified offers.
Tax and pension considerations
Your pension strategy can have tax implications:
- Tax relief: Pension contribution is tax relieved, and this becomes very useful in long term savings.
- Inheritance & IHT: Pensions can be subject to various taxation regulations when it comes to inheritance planning, it is important to review these when you change careers.
Review other financial assets
Your finances after a new job go far beyond pensions.
Emergency fund and savings
Ensuring you have an emergency cushion equivalent to 3–6 months of expenses is a smart starting point. This gives you financial flexibility during unpredictable life phases like a career transition.
Debts and loans
Career changes can be an opportunity to pay down high-interest debt or reconsider financing like credit cards and personal loans.
Insurance coverage
Review your health, life, and income protection insurance — especially if you move out of an employer-provided scheme. It may be the right time to put in place private policies.
Estate planning
Update wills and beneficiary nominations where relevant.
Do you need to speak to a financial adviser after a career change?
It could be a good opportunity to review your situation and put in place a financial plan.
Here’s how to decide:
- You have new financial goals – If your objectives change with your career (e.g., different retirement age, property purchase), looking at a fresh/revised financial plan is a valuable exercise.
- Your pension strategy is complex – Particularly with multiple pension pots and defined benefit schemes, expert advice can help you avoid costly mistakes and make the most of what you have.
- You’ve spoken with a financial adviser before, but never had a proper financial plan – Not all financial advisers work in the same way. You may have had advice on a particular transaction like investing a lump sum of money, but not all advisers specialise in pensions or career transition planning. A financial plan based on the whole picture will give you the best chance of getting the outcomes you’re looking for.
If you feel overwhelmed by the administration or decisions, seeking professional financial advice for new job planning can save time, reduce risk and give you confidence that your money is working as hard as you are.
How financial advisers add value
A financial adviser can help you:
- Create a holistic financial plan that reflects your new salary, benefits and goals.
- Highlight any areas where there are potential risks, and how to mitigate them.
- Advise on pension consolidation and whether combining your old pots is right for you.
- Identify tax-efficient strategies relating to retirement, savings and investments.
- Provide ongoing support as your career and life evolve.
Final thoughts
A new job should be a milestone that boosts your financial confidence — not a trigger for missed opportunities or disorganisation. By creating a new job financial checklist, reviewing old pensions, considering pension consolidation, and seeking the right expertise where needed, you’ll set yourself up for long-term success.
At Fairview, we specialise in helping individuals navigate these transitions with tailored financial advice — from pension planning and consolidation to broader financial strategies — so your fresh start can be truly rewarding.