I do not understand pensions at all. I just wondered what everyone else thinks of the Tesco pension. I'm currently paying in 15% of my wages into it, am I wasting my money?
15% I thought you could only go between 4 and 7.5?
I was always of the belief that you could save as much as you wanted, but Tesco would only contribute up to 7.5 to match your 7.5 ???
You can put `00% in if you like but as said above, tesco will only put in 7.5%.
Tesco will only match upto 7.5%.
Ie you put in 5% tesco puts in 5%
you put in 6.5% tesco puts in 6.5%.
So this goes upto 7.5%.
You put in 0% tesco puts in 0%
If you can afford it but 7.5% is all Tesco will match .
You can save as much as you can afford, Tesco will only put in a max 7.5% .
I understand how it works, I understand what Tesco will pay in. My question is, is it worth me putting as much as possible into the pension, or do people think that I'd be better off putting the money elsewhere? What do others think of the Tesco pension plan?
Quote from: taliahad on 23-06-19, 12:53PM
I understand how it works, I understand what Tesco will pay in. My question is, is it worth me putting as much as possible into the pension, or do people think that I'd be better off putting the money elsewhere? What do others think of the Tesco pension plan?
money is invested into the stock market and this will determine any losses and gains over the years.
Really I would decline to give financial advice.
Maybe go and see a pension advisor and explain that you have a defined contribution pension and would like advice.
They have to follow code of conduct.
You may be charged for his time.
Hope this helps in some way.
For me it's a no-brainer up to 7.5% contributions since with Tesco matching your contributions plus tax benefits and very low fees it's a great deal.
After 7.5% it's still very tax efficient and low cost so it's not a bad choice or a 'waste of money' but most GA and team manager's are probably going to want to invest in things where they can get their money back before they retire.
Pension is nowhere near as good as the one that tosco closed in 2015,once again shafting its hard working staff, and costing them literally thousands of pounds each.
I pay 15% into mine...Tesco match 7.5%. It seems an OK pension to me, obviously I'd like Tesco to match a higher % like they do for Senior Team but hey ho.
So easy to increase/decrease the % you pay in each month via the colleague room.
Fo the final month of the last tax year I increased mine to 80% for that 1 month only. (I didn't really need the money at the time) :P
As far as I'm aware, the pension scheme is the same across the board (probably except for executive directors and the c-suites), Tesco vacancies for positions such as Store Manager, Government Relations Manager and Software Development Manager all offer the 4-7.5% defined benefit contribution pension scheme.
Tescos pension scheme is ok, but low wages doesn't add much to it. When I was an SL, contributing 5%, I averaged £77.86 S.M.A.R.T contributions (I don't know if that's my contribution or both, mine and Tescos.) In my current job, I pay 4% they pay 6%, it ends up with total contributions of about £350 a month.
Have been in the pension for just over a decade. Don't want anything to do the pension now. Can I remove all my contributions as lump sum?
You can transfer your pension out to another scheme, but you will lose money from it, It's best just to take it as an annuity or a percentage as a tax free lump sum when you do retire.
The new pension scheme came into affect 2015 and the old one frozen. You can apply to take your pension out aged 55 or over. They won't give the full sum to you and you should have received your pension forecast earlier this year which explained your options.
Personally, I withdrew all of my old pension pot, late 2017, I was granted the full amount and paid tax on 75% of it, but I did get a tax rebate at the end of the tax year, admittedly not the full amount.
It was right for me, it enabled me to upgrade my home and remain mortgage free. The house has increased in value in the last 18 months at a higher % than the pension pot was offering.
The new one, even though I was contributing the 7.5 match to 15%, has now stopped for me since being made redundant. The amount in it is a pittance, but I will hang on to it for now, to see if it's worth transferring to a new employer pension fund.
I have changed my contributions a few times. Currently I pay in 17% excluding the Tesco contribution. I am about to shift the value (I'm keeping £100 in to continue current contributions) to a stakeholder scheme to give me more fund choice but still within L&G. I pay in 17% as its done at source from my wages and I can forget about it. I also pay in maximum into BAYE.
Quote from: lucgeo on 23-06-19, 06:07PM
The new pension scheme came into affect 2015 and the old one frozen. You can apply to take your pension out aged 55 or over. They won't give the full sum to you and you should have received your pension forecast earlier this year which explained your options.
Personally, I withdrew all of my old pension pot, late 2017, I was granted the full amount and paid tax on 75% of it, but I did get a tax rebate at the end of the tax year, admittedly not the full amount.
It was right for me, it enabled me to upgrade my home and remain mortgage free. The house has increased in value in the last 18 months at a higher % than the pension pot was offering.
The new one, even though I was contributing the 7.5 match to 15%, has now stopped for me since being made redundant. The amount in it is a pittance, but I will hang on to it for now, to see if it's worth transferring to a new employer pension fund.
Hi lucgeo. did you pay the high tax or normal on the 75%. I ask because I'm thinking of doing the same.
Pretty sure it was 20%, e mail the pensions dept, giving your employee number,D.O.B. and N.I. Number....they will tell you the figures and whether they will release the full amount....they don't with everyone, suspect it may be an age thing and if the amount is in excess of their ceiling figure for needing to obtain independent financial advice??
It also depends op your personal circumstances. As someone near state retirement age but with a decent pension from a former employer I have decided it is better to pocket a bird in the hand now rather than a bird in the bush later.
Quote from: NightAndDay on 23-06-19, 04:45PM
As far as I'm aware, the pension scheme is the same across the board (probably except for executive directors and the c-suites), Tesco vacancies for positions such as Store Manager, Government Relations Manager and Software Development Manager all offer the 4-7.5% defined benefit contribution pension scheme.
I'm sure I read on here a while back that the deal for Senior team was different/better. A quick search threw up this page on it
https://www.thisismoney.co.uk/money/markets/article-3217202/Supermarket-Tesco-tells-staff-end-final-salary-pension-scheme.html (https://www.thisismoney.co.uk/money/markets/article-3217202/Supermarket-Tesco-tells-staff-end-final-salary-pension-scheme.html)
Like I said, I'm sure I read it on here too but couldn't find that info
Hmmm interesting, vacancies on the Tesco careers website for WL 3+ positions offer the 4%-7.5% pension, this means one of 2 things, either Tesco reduced it to the 4%-7.5% scheme for everybody, or the senior team is classed as WL4+ colleagues (I'm guessing Superstore SM's, Superstore AMs, directors and above.)
Quote from: gomezz on 23-06-19, 09:48PM
It also depends op your personal circumstances. As someone near state retirement age but with a decent pension from a former employer I have decided it is better to pocket a bird in the hand now rather than a bird in the bush later.
How do you mean Gomezz??? I'd have thought for someone nearing retirement age, or even nearing the age at which the new pension could be pulled (55), that makes it a no brainer.
I mean, if you were say 50, (with a decent pension in place elsewhere) you could throw in the 7.5% for 5 years knowing that over that time you'll be at least doubling your investment (with the Tesco match up) and have the peace of mind that the money could then be pulled at the end of the 5 years (when you hit 55) if you so wished.
More so, treat it as a long term savings plan, not a pension.
As far as I know the employer's contributions to your pension pot cannot be cashed in as you suggest. And your own contributions if cashed in are then subject to income tax the same as if they had been part of your pay originally. So no real advantage to bothering with it.
When you pull it, or 'cash in', then you can do with the whole pot as you please, just like any other pension.
Once Tesco have made a contribution each month, then that's the end of their involvement/influence. That money is then yours. (even though you can't touch it until 55+)
What you've said rings true with the old pension, but does not apply with the new L & G one.
Your point about tax is true, but that rule is the same with any pension income regardless of it's source.
Just found it on the pension website...
'From age 55, you can take your savings all as cash (25% tax-free), a bit at a time or as a guaranteed regular income.'
So, for example, a 50 year old slaps in 7.5% a month (let's call it £100), Tesco match it, giving him a pot of around 11 grand after 5 years. That pot has cost him less than 5.5 grand (once tax breaks are accounted for).
Those calculations are not including any pot growth of course. (It should be noted nothing is guaranteed & pensions can go down as well as up).
Been in current tesco retirement scheme since it started..less than 4 years ago (i think), pay 7.5% in each pay, normally around £100, and thats matched by tesco. Currently have just over 11k in pot. I am sure theres a lot better pensions out there but i think its a decent scheme.
I worked for tosco for 21 years till 2016....just a query about my pension if anyone can help....i keep getting letters from the new pension which i paid into for about a year....why dont i hear nothing from the one that closed??? I wanna make sure i get my my money when the time comes as i paid into that one for 20 yrs....should i not be recieving letters regarding that one??? How will i go about claiming it??? Im only 45 and appreciate I've got years to go but just wanna make sure i get whats due....thanks
Try this...
Website: pensionwebsite.co.uk
User name: tesco Password: mypension
Quote from: Hansolo on 20-02-20, 03:06PM
I worked for tosco for 21 years till 2016....just a query about my pension if anyone can help....i keep getting letters from the new pension which i paid into for about a year....why dont i hear nothing from the one that closed??? I wanna make sure i get my my money when the time comes as i paid into that one for 20 yrs....should i not be recieving letters regarding that one??? How will i go about claiming it??? Im only 45 and appreciate I've got years to go but just wanna make sure i get whats due....thanks
The old pension you will need to contact them and they will tell you how much it will pay you when you retire you can ask for break down to be sent to your house you must keep them up to date with any changes like next of kin and telephone numbers I asked for a transfer value to be sent to me because if I became unwell I would no how much I could transfer in to my new pension with legal and general so my wife would have my pot to drawdown from ,say I get a illness meaning I was going to die in a few years I would transfer my pensions in to one becauce a spouse only gets half for life she would have to live over 45 ye a rs after my passing to get the transfer value out of the pension ,as I am in good health I have left it where it is I am 57
In regards to pension.. If im near pension age do i have to give notice of wanting to retire or can i just hand my one weeks notice in as normal?
Your Job and your pension are not truly linked ,so you can leave your job when ever you want ,
If I remember correctly depending on how long you have been working for Tesco you could have up to 4 different pensions ,
When you say you are near pension age , are you talking about Government pension age 65 years or 55 from when you can take your pension from ? if it is the 55 one then I would think twice before taking it since the pay out would be lower , Also remember that you don't have to take the pension when you retire , You could stop paying into it and still allow it to grow so you get a larger pot to draw on later on in your life ,
Remember you can work and still take any pension you are due ,
Talk to your pension company , the details will be on the yearly letter you get showing how much you have built up , like I said could be up to 4 company's ,
I would contact the pension company's that are looking after your pension to give you a figure on what you will get
One bit of WARNING , You will start getting letters from all sorts of company's offering to sell you something or to sort your pension or pensions out , I would rip them up and bin the letters ,
All the best ,,
So i can tell tesco to stick the job where the sun don't shine and leave, whoop ;D
I don't plan on using any pension at the moment. But wanna leave ASAP.
Thanks
I have read your other post today , would just say Get advice about if you can leave before the investigation or should since the job situation is not good at the moment so remember don't make a decision in haste ,,,,,
It takes a bit longer to set up retirement and there are advantages to this. If you have done a given amount of years (I think it's 10) you can drop 5% of your hours for six months in the run up to retirement without any loss in pay. The days and times on this are to be mutually agreed but depending on how many hours you do this can be a nice amount of time.
All you need to know on this can be found online.
Its a 5th of your working week not 5% for 6 months before you retire and yes it is if you’ve been with Tesco for at least 10 yrs that you’re entitled to this.
I worded that badly, I do know It's a 5th of the working week.
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