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Saving through 'SMART' - for those who pay tax

SMART is a way of paying towards your retirement savings through salary sacrifice – which means you pay less National Insurance, as well as saving on Income Tax.

In most cases if you're a tax payer, you’re better off saving towards your retirement through SMART.

If paying through SMART is right for you, we’ll automatically arrange this for you. If you do not want to pay contributions through SMART you can do so by letting us know you wish to opt out of SMART.

SMART may not be right for everybody though, particularly if you’re not a tax payer.

If it is likely you’d be better off being opted-out of SMART, we will automatically opt you out and let you know we have done this.

Here’s an example of how 'SMART' works:

This example is based on a colleague earning £85,000 a year or £6,538.46 every four weeks (based on 2022/23 tax year). It assumes you sacrifice 6% of your pay and Tesco pays in 9%, and shows the cost to you every four weeks.
The amount your pay (before tax) is reduced £392.30 Your income tax and NI saving - £164.76 The cost to you = £227.54 Tesco SMART contribution made in exchange for reduced pay £392.30 Tesco matching employer contribution + £588.46 Total paid into your retirement savings = £980.76

To see how this works and how much you’ll pay, use The Planner.

Please take a look at the Tax Facts Sheet or ring the Tesco Pensions Helpline on 0345 070 0090 for more information.

To understand the effect that saving through SMART might have on other Tesco benefits and State benefits please see the SMART guide.

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Pension Quality Mark. UK quality award for the Tesco Retirement Savings Plan.