Redundancy: keep your pension record separate

Your pension and leaving payment are different

MoneyHelper explains that pension savings already built up remain yours after redundancy, while employer contributions stop after leaving. Defined contribution money usually stays invested and can change in value. Defined benefit and short-membership cases need their own scheme explanation.

Sources: MoneyHelper: Pension options after redundancyGOV.UK: Changing jobs and taking leave

Create a leaving-work record

Keep the redundancy correspondence separate from pension statements. A leaving payment is not automatically a pension contribution, and a proposed payment is not a receipt from the pension scheme. Ask for a written breakdown when labels or periods are unclear.

Set out the last employment date, the final payroll period and any contribution query in your private filing. Do not replace a historical statement value with the amount shown on a redundancy letter.

• Ask which scheme holds the benefits from this employment.
• Request the scheme’s explanation of retained benefits and any short-membership rules.
• Check contact details through the verified scheme route.
• Keep final contribution questions and their replies dated.

Organising does not require a transfer

MoneyHelper describes leaving benefits in place and transfer possibilities, with warnings about losing features. Understanding the record does not require choosing either option today. Ask the scheme about applicable terms before treating an option as available to you.

Putting redundancy money into a pension is a separate financial and tax decision. This guide does not recommend a payment, calculate tax relief or decide affordability. Seek appropriate guidance or qualified advice for those questions.

Sources: MoneyHelper: Pension options after redundancy

Check State Pension questions separately

If a period out of work raises a National Insurance question, use the official credits eligibility guidance and your actual NI record. Some situations have automatic credits and others require action; redundancy alone is not proof of a qualifying year.

• All Pensions does not submit a claim, transfer, contribution or employer enquiry.
• Keep short employer notes in the browser organiser; keep real letters and identifiers privately.

Sources: GOV.UK: National Insurance credits eligibility

Keep learning

• What happens to your pension when you change jobs? →
• Pension consolidation: organise the questions before a transfer →
• National Insurance credits: where to start →
• Pension search checklist →

Browse all workplace pensions guides →