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Tesco Retirement Savings Plan

What are the benefits?

Female Dotcom driver in Tesco van

Saving through the Tesco Retirement Savings Plan comes with some great advantages like:

  • Tesco matches what you save (up to 7.5%)

When you save, Tesco also contributes towards your savings and will match what you save up to 7.5% of your pay.

  • You save on tax

You save on Income Tax when you save for retirement, so it costs less than you think. If you save through SMART, you save on National Insurance as well, see How much does it cost?

Life cover is included

You get life cover with the Plan, so your family is protected if you die while still employed by Tesco. The life cover benefits payable are:

  • A cash lump sum worth 5 times your annual pay which will continue to be provided while you continue to pay into the Plan.
  • All of your savings in the Plan including the contributions paid by Tesco and all investment returns on these savings.

You can choose how you take your savings

You’ll be able to take up to 25% of your savings as a tax-free lump sum.

The rest of your savings can be taken in the following ways:

  • all as cash
  • as a regular guaranteed income
  • a bit at a time throughout your retirement
  • or a mixture of these

Depending on how much you take it may be subject to Income Tax.

Please note - Contributions to the Plan can be paid either from your net pay or through SMART, see Saving through ‘SMART’ for more details. Where we refer to you paying contributions, if you’re paying through SMART, your contributions will be paid through a salary sacrifice arrangement rather than you paying direct. Therefore, references to the amount you pay, should be read as the amount you’ll sacrifice through SMART, if you’re paying through SMART.

For more information on how you can take your savings when you retire, go to How can I take my savings when I retire.