When you're approaching retirement, there are a number of things to consider before taking your pension.


When do you want to retire? 

It's important to consider what age you might want to retire, whether you're thinking of retiring early - from age 55, retiring at your normal retirement age, or delaying retirement to carry on working. If you decide to retire early, the amount of pension you receive from the Scheme will be reduced as you'll receive it for longer.


Early retirement

Currently the earliest you can take your pension is age 55 (unless you are eligible for ill health benefits) - this is known as the normal minimum pension age. If you do decide to take your pension early, the amount you receive will be smaller as you'll receive it for longer.  


The normal minimum pension age is changing from 6 April 2028. From this date, the earliest age from when you can normally start to take your pension will be age 57. If you take your pension after 5 April 2028, but before you are aged 57, you may have to pay a tax charge on your pension. For more information, please click here.


Normal retirement age and full pension age

Any pension you built up in the Scheme before 1 June 2012 can be paid in full at age 65 (Staff section) and age 60 (Senior section). This is the 'Normal Retirement Age'. Any pension you built up in the Scheme after 1 June 2012 can be paid in full once you reach 'Full Pension Age'. This age is regularly adjusted by independent experts in line with how long most people are expected to live. Click here for more details of the Full Pension Age.


For example, if you are a member of the Staff section and built up pension before and after 1 June 2012 and decide to retire at age 65 (before the Full Pension Age):

  • You'll receive in full what you'd built up before 1 June 2012
  • You'll receive a slightly reduced amount for what you'd built up after that date, as you're taking that part early ie. before the Full Pension Age


If you are a member of the Senior section and built up pension before and after 1 June 2012 and decide to retire at age 60 (before the Full Pension Age):

  • You'll receive in full what you'd built up before 1 June 2012
  • You'll receive a slightly reduced amount for what you'd built up after this date, as you're taking that part early ie. before Full Pension Age


Late retirement

You can apply for your pension to be delayed so you can take it later. Don't forget if you do take your pension later, it'll be increased as you'll be receiving it for less time.


Request a retirement quote


What other pensions and savings do you have? 

To help you make choices that are right for your retirement, it's useful to take a little time to understand what other income you may receive from other places. You may have savings in the Tesco Retirement Savings Plan, or from other employer or private pension schemes.


Have you lost track of an old pension?

The Government's free tracing service can help you find any old or lost pensions that you may have had.


Search for a lost pension


Have you made any Additional Voluntary Contributions (AVCs)?

If you made AVCs when you were saving into the Scheme, there are different ways you can use your extra investment.


More about AVCs


The State Pension

You’ll need at least 10 years of National Insurance contributions to qualify for the State Pension - and 35 years to get the full amount.

You can apply online for a State Pension Statement, to see how much you might get when you reach State Pension Age.

You can find out how much you could get and when by checking your State Pension on the gov.uk website.


More about State Pension


How do you want to take your pension? 

You need to think about how you want your Tesco pension to be paid - as a regular four-weekly income or as an upfront tax-free lump sum with a smaller regular income.
Or, perhaps you’d prefer to transfer your pension to another pension arrangement, so you can take advantage of some other options for taking your pension. This is a big decision. Once you transfer out you lose all the guarantees and benefits you have in the Tesco Pension Scheme and this cannot be reversed. 

Here are some other things to consider:


  • Will you have other guaranteed, regular retirement income?
  • Do you have savings?
  • What is the value of your Tesco Pension Scheme?
  • Do you have any long-term financial commitments such as a mortgage to repay?
  • Do you have a spouse or partner, or children who are dependent on you, to consider?
  • Do you have any major expenses you know of in the foreseeable future?
  • Are you good at managing your finances?
  • What option would make you feel the most comfortable about your future?
  • Knowing how long you might live is important in helping you know how long your retirement savings may need to last. Try out the Office for National Statistics life expectancy calculator.
  • Will your pension be enough for a decent standard of living? Try the Joseph Rowntree Foundation's minimum income calculator to see what your costs at retirement may be and what benefits you may be entitled to.

Request a retirement quote.


About six months before you reach normal retirement age, we'll automatically send you a retirement pack with your total pension value and options, along with forms to complete. 

If you'd like to retire sooner than your normal retirement age, you should complete the retirement quotation form. We'll then send you a retirement pack. 


Request a retirement quote


If you'd like to retire later than your normal retirement age, when you receive your pack in the post, call the Tesco Pensions helpline on 0345 070 1113 (option 2) to let us know.