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Pension Changes

Started by burns2015, 20-04-15, 08:22AM

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BritishRacingGreen

#300
You can Terra - you can access NI payment years online at Gov.uk and make any payments that you need. You can also check any NI credits that have been submitted.

barafear

Hi, thought I'd reignite an old thread. Just wondered whether people on here are aware you can access your up to date pension pot value ( new scheme from 2015) on ourtesco. Also, you are able to changed which pension funds you invest in (from a list of funds on l&g website). Some of the funds have vastly different performance records.....can I ask whether people could say how well their pot has performed and from when....for example, if you only joined it in 2018, then say....from 2018, 25% growth......also be interested to know what people's employee contribution % is......so to kick off.....in since sept2016 and growth of 26%....cheers

Charlie Harper

Mine started when the new scheme started...30th December 2015. Currently 44.83% up.
I've changed my investments from the default. I've been regularly contributing the 7.5% but I do boost that every now and again, I'll have the odd month where I'll increase it to 20% or 25%.

Johnzo88

Started in the new scheme Dec 15'. Up 37%. In default lifestyle fund but looking to change as want to take a little more risk, as im still 25+ years away from retirement. Put in 7.5% of my wage each month to get maximum from tesco.

barafear

Quote from: Charlie Harper on 13-02-24, 06:39AMMine started when the new scheme started...30th December 2015. Currently 44.83% up.
I've changed my investments from the default. I've been regularly contributing the 7.5% but I do boost that every now and again, I'll have the odd month where I'll increase it to 20% or 25%.
Well played.

rupert7

the new pension is not has good as the old one,if your young and will be with tesco for a long time then put in 7.5 of your wages each month and tesco will do the same,that will be the only way you will come out with a decent pension, the  (-*-) pension will be your life line when you stop working, so do all you can to top it up.

Hammer10

I bumped mine up to 9% as I get closer to retirement going to bump it up more to what I can afford .

barafear

Even though Tesco don't match contributions above 7.5%, if you can afford it you still benefit from tax and possibly NI savings from bumping up your contributions. 

However, flipside is the investment performance of your pot and also how you "take" your "pot". Not much point in saving 20% tax now if you end up paying 45%+ when you retire.

So "Hammer10", how's your pot grown since you started?

Hammer10

#308
Currently sitting at 34000 plus I took my other pension 6 years ago to pay my mortgage off still got 7 years left .till I retire no chance of paying 45% tax it won't get that high.

NightAndDay

#309
Quote from: barafear on 13-02-24, 11:01AMEven though Tesco don't match contributions above 7.5%, if you can afford it you still benefit from tax and possibly NI savings from bumping up your contributions. 

However, flipside is the investment performance of your pot and also how you "take" your "pot". Not much point in saving 20% tax now if you end up paying 45%+ when you retire.

So "Hammer10", how's your pot grown since you started?
Curious as to where this 45% figure comes from, it's the same rate of tax that additional rate tax payer pay on earnings over £120k a year.

The one notable tax related to pensions was related to the lifetime pension allowance threshold of circa £1 million, where anything above that is taxed at 55%, but this was being planned to be scrapped (temporarily?) Last year by Jeremy Hunt in an effort to attract economically inactive boomers back to the work force.

When you withdraw your pension, if I understand it right, you can withdraw 25% of it as a lump sum tax free, as for the rest, if you take it all as a lump sum, it counts towards your personal allowance and is taxed based on how much you take, though most would choose to go for an annuity, from a pension calculator I have with one of my work place pensions, an estimated £600k pension pot while retiring at 72 could get me around £4.4k a month as an annuity, which would barely put someone in the 40% higher rate tax bracket, this would be even less if they decided to retire earlier, though inclusion of state pension would push it further into the 40% tax bracket.

With the above, I don't think even a £1 million pension as an annuity would hit the current high rate tax thresholds, if we then consider the above is based on tax thresholds today and not 35 years or so into the future, it seems unlikely that it would be taxed at 45% at all.

barafear

But how much has your pot grown with investment growth in % terms?

NightAndDay

#311
I have 5 pots, one is my old mcdonalds pension, it has a negligible amount in it, I have 3 Tesco pensions, the old style pension where you contributed 5% and Tesco contributes 10% I have an old leaflet for that but don't know what happened to it, the current Tesco pension that I put money into as a Shift Leader, that's doing quite well, and is up around 71% of what I put in, (It's worth £9,691.05 and I've invested £5.735.63 into it), my pension at an old firm I joined after leaving Tesco, I put £23k into it and it's currently worth £29.6k and my 3rd Tesco pension as a head of technology currently has £30k in it and is worth £37k.

These are all managed by the pension provider (mainly L&G)

So overall across the pots I know about, it ranges between 23%-71%, but the 71% has been around for several years longer than the other 2.

barafear

71% growth since end of 2015 (presumably) is significantly more than most on here seem to have achieved.
But only £6k invested - suggests about £750 per year? - on a shift leader wage? doesn't sound right?
I guess you haven't had it since 2015?

As for your latest pension - do you mean contributions of £30k and current value £37k?
But Tesco's contributions to that are far higher than normal B/C grade colleagues.

Do you contribute 10% yourself and Tesco top it up to 25% in total?

grim up north

Out of interest where do you see these pension pots? Apathy can lead to these things be forgotten about, this thread has made me realise to keep up to date.

NightAndDay


NightAndDay

#315
Quote from: barafear on 15-02-24, 04:54PM71% growth since end of 2015 (presumably) is significantly more than most on here seem to have achieved.
But only £6k invested - suggests about £750 per year? - on a shift leader wage? doesn't sound right?
I guess you haven't had it since 2015?

As for your latest pension - do you mean contributions of £30k and current value £37k?
But Tesco's contributions to that are far higher than normal B/C grade colleagues.

Do you contribute 10% yourself and Tesco top it up to 25% in total?

I mean overall amount, the £30k is mine and Tescos combined contribution and the £7k is the capital gains on the pension amount.

At Head office, the pension schemes are the same as shop floor, 4.9-7.5% matched by the employer, which is good even compared to other office jobs.

I paid inti that pension between 2015-2019, I was a Shift Leader for 1.5 of those years, the rest was as CA, and a lot of it on a part time basis. When I dropped down to Sunday only CA when I got my new job, Shift Leaders were on £9.98 an hour I believe (June 2018) just under £10 an hour.

Attilla

Strange how you're all saying you e had big %increases in your pensions.  Stock market took an absolute hammering a year or so ago.  My Tesco pension and even my private pensions have hardly grown in the last couple of years and in some cases  lost money

barafear

Quote from: NightAndDay on 15-02-24, 07:04PM
Quote from: barafear on 15-02-24, 04:54PM71% growth since end of 2015 (presumably) is significantly more than most on here seem to have achieved.
But only £6k invested - suggests about £750 per year? - on a shift leader wage? doesn't sound right?
I guess you haven't had it since 2015?

As for your latest pension - do you mean contributions of £30k and current value £37k?
But Tesco's contributions to that are far higher than normal B/C grade colleagues.

Do you contribute 10% yourself and Tesco top it up to 25% in total?

I mean overall amount, the £30k is mine and Tescos combined contribution and the £7k is the capital gains on the pension amount.

At Head office, the pension schemes are the same as shop floor, 4.9-7.5% matched by the employer, which is good even compared to other office jobs.

I paid inti that pension between 2015-2019, I was a Shift Leader for 1.5 of those years, the rest was as CA, and a lot of it on a part time basis. When I dropped down to Sunday only CA when I got my new job, Shift Leaders were on £9.98 an hour I believe (June 2018) just under £10 an hour.
I assumed your job would be WL1 (or whatever the highest is?) -

Is this an out of date job advert then?

Retirement savings plan – save anything from 6% of your pay and Tesco will pay 1.5 x your contribution up to 15% of your pay

That was for a job as

Enterprise Architect

in the

Technology Dept

NightAndDay

I think they changed it a few years ago, so it's all aligned, I think I rejoined after they made the changes. A lot of vacancies I seen used to have that as a pension arrangement but It's changed for everyone I think except for those a lot higher up the chain, the vacancies you won't see advertised on the website (or extremely rarely).

It's not surprising really, but even with the pension changes, it's still a good pension.

https://www.tesco-careers.com/jobdetails/841334/ is the same level as I am and shows 4-7.5% aligning with the wider business.

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