How can I take my savings when I retire?

You can take your savings as cash either all in one go or as a small number of payments.

If you’ve already received 25% of your savings tax free, the rest of your cash will be subject to Income Tax, so you should consider carefully how much you take and when you take it (or you might pay a higher tax rate).

What do I do if I want to take my savings in this way?

If your money is invested in the Tesco Lifestyle Cash Option and you plan to take your retirement savings as cash, you don’t have to do anything.

The Tesco Lifestyle Cash Option automatically assumes you’ll take your money as cash and will invest your money with this in mind.

You might decide you want to take your savings a bit at a time on a regular basis throughout your retirement.

Your savings will remain invested as you do this, until all of your savings have gone.

You’ll have to pay Income Tax on what you take, after you’ve received your 25% tax free cash, if your overall annual income is above your income tax threshold.

What do I do if I want to take my savings in this way?

If you plan to take your retirement savings a bit at a time, we can invest your savings with this in mind in the Tesco Lifestyle Drawdown Option.

In the 5 years before your selected retirement age, the Tesco Lifestyle Drawdown Option will adjust to leave more of your savings invested in funds that are more likely to give you a return after you retire.

If you prefer this option, just let us know, ideally 5 years or more before your selected retirement age.

You can choose to convert your retirement savings into a regular income that you’ll receive for the rest of your life. To do this you’ll need to talk to an insurance company to buy an annuity.

At retirement, we’ll help you by providing details of how to ‘shop around’ to find the insurance company who will give you the best rates.

After you’ve received your 25% tax free cash, the regular money you receive from your annuity payments count as income so you’ll have to pay tax if your overall annual income is above the income tax threshold.

What do I do if I want to take my savings in this way?

If you want to take your money as a regular guaranteed income (pension), we can invest your savings with this in mind in the Tesco Lifestyle Regular Income Option.

In the 5 years before your selected retirement age, the Tesco Lifestyle Regular Income Option will gradually invest in funds to suit this outcome, to help maximise what you receive.

If you prefer this option, just let us know, ideally 5 years or more before your selected retirement age.