• Covid pandemic, lockdowns and working from home has prompted many to change jobs 
  
• Pay rises (27%)  and a more enjoyable job (22%) were the most common reason for changing jobs
  
• More than half of job changers say they increased income but 18% took a pay cut 
  
• 12% of job changers say they increased income by £10,000 or more

Research from pensions and retirement specialist LV= highlights how Covid pandemic has prompted millions of people to make changes to their careers.
The LV= Wealth and Wellbeing Monitor* - a quarterly survey of 4,000+ UK adults – reveals:

• 28% (9m) working adults have changed job since the start of Covid
• Some working adults changed job due to a promotion (11%) and some chose to do a similar role for a different company (10%)
  More than 1 in 10 (12%/ 3.9m) working adults completely changed career (do a completely different type of job). 
• More than half (51%) who took a new job increased their (pre-tax) income  with 12% increasing income by £10,000+
  Nearly one in five took a pay cut (18%) with 4% saying they reduced their (pre-tax) salary by £10,000 a year or more
• 33% of people in high income households with an income of more than £100,000 have changed jobs, a third (32%) took up a new hobby and 1in 10 (9%) took up voluntary work 

Reasons for changing job
Higher income and lifestyle factors were important reasons for changing jobs while the rise of working from home has prompted many to reconsider their priorities. The top reasons for changing jobs were:

• A higher income 27% 
• Wanted a job they enjoy more 22%. 
• Redundancy 19% 
• Wanted a more reliable income 18%
• Wanted to work from home 16%
• Less stressful job 16%
• More flexible hours 15%
• Shorter commute 14%
• Wanted more time with family or partner 14%
• Decided to move to a different area 13%
• Wanted to do something that makes a difference 13%
• Wanted to work part time 12%
• Wanted to work for myself 9%
  
  

Pay rises and pay cuts
The top reason people changed job was a higher income and 51% of people who changed jobs since Covid say they are now on higher pay. A smaller proportion (18%) reduced their income with their new job. 

Of those people who changed jobs, the research shows:

• 12% increased their income by £10,000 or more
• 15% increased their income by between £5,000 and £10,000
• 25% increase their income between £1,000 and £5,000
• 22% pay stayed roughly the same
• 11% reduced their income between £1,000 and £5,000
• 4% reduced their income by £5,000 and £10,000
• 4% reduced their income by £10,000 or more
  
  

Changing jobs? Financial points to consider 

• Consider pensions and other benefits alongside salary – How do the benefits under the new job compare against those offered by the existing employer.
• What will happen to any pension built up in the previous job?  A final salary pension is probably best left alone, but for other schemes there can be benefits of consolidating them into one. A financial adviser will be best placed to ensure you get the most out of your pension savings.
• Many employers offer a death in service benefit, often as part of the pension scheme. Consider what is offered in the new role and what will be lost, since it may be a point to review whether additional life insurance or critical illness cover is needed (or no longer needed).  
• Inform your financial adviser of the role change – this may require a review of your finances to ensure you’re still be on track for any financial goals.