Walking out the door of a job can feel like a fresh start, but it also means saying goodbye to a bunch of benefits you may not even realize you have. Before you hand in that resignation, take a few minutes to check what stays with you, what you might lose, and what you can claim. A quick review can save you from nasty surprises on your next paycheck.
Most UK employees are part of a workplace pension. When you leave, the money you’ve built up doesn’t disappear – it’s yours. Ask your HR team for the latest statement and find out if you can leave the pension where it is, transfer it to a personal pension, or roll it into a new employer’s scheme. Each option has its own fees and tax rules, so compare a few before deciding.
If you’re close to retirement age, you might be eligible for an “early pension release” or a lump‑sum payment. Talk to your pension provider about the exact amount you can take and any penalties for withdrawing early. Making the right move now can boost your retirement savings.
When you resign, your final paycheck will include any outstanding salary, holiday pay, and possibly a prorated bonus. Check your contract to see if bonuses are guaranteed or discretionary. If you’ve hit a performance target, ask whether you’ll still get the bonus even after your last day.
Many companies offer a severance package, especially if you’re being made redundant. Even if you quit voluntarily, you might qualify for a statutory redundancy payment if your role is eliminated. Look up the statutory rates – they’re based on age, weekly pay, and years of service – and see if your employer offers anything above the legal minimum.
Don’t forget about other perks like private health insurance, gym memberships, or employee discount schemes. Some benefits end on your last working day, while others can be extended for a short period. Get the details in writing so you know exactly when coverage stops and whether you can keep it by paying a fee.
Lastly, check your notice period. If you’re willing to work through it, you’ll keep your benefits longer and may avoid a gap in income. If you need to leave immediately, see if you can negotiate a payment in lieu of notice – it’s often treated like a normal wage payment and keeps your tax situation simple.
Keeping a small checklist can make the process painless: pension options, final pay, bonus eligibility, severance rights, and any ongoing perks. Write down who you spoke to, the dates, and any numbers they gave you. Having everything on paper helps you spot mistakes and ask follow‑up questions quickly.
Leaving a job is a big step, but it doesn’t have to be a financial shock. By taking a few minutes to verify your benefits, you protect the money you’ve earned and walk away with peace of mind.
Wondering what happens to your pension if you quit your job? This article breaks down exactly how different types of pensions work when you leave, what your options are, and what smart moves you can make to protect your money. You'll also learn about tips to avoid common mistakes and the facts about rolling over funds or leaving them put. Practical info, real-life tips, and no confusing jargon.
