Getting ready for retirement for Tesco colleagues

Getting ready for retirement for Tesco colleagues presentation transcript

Slide 1. ‘Getting ready for retirement’

Welcome everyone to our webinar about the Tesco Retirement Savings Plan. 

My name is Colin Wildman, and I am a member communication consultant at Legal & General. My role today is to help you get ready for retirement.

So that you can follow up on any subjects of interest I’ll highlight where you can find out more about each topic during the presentation. The presentation contains QR codes so you may want to have a mobile phone handy in case you want to scan any of them. 

All the information covered can also be found in the reward and benefits, retirement savings section of the ourtesco.com website. 

The presentation will take around 40 minutes and it will be available to watch back on demand using the same link that you used to join today’s event.

There is the facility to ask questions on the BrightTALK platform.  Once I’ve delivered the slides, I’ll use any remaining time to help answer questions.  If I don’t manage to respond to your individual question today, please call the Legal & General customer helpline on 0345 070 0090 - between the hours of 8.30am and 7pm Monday to Friday.

Slide 2. Important information

Risk warnings:

• This is a general education presentation and does not represent financial advice.
• It’s based on the 2024/2025 tax year.
• The law, tax rates and any allowances may change in the future.
• The value of your investment can go down as well as up. It isn’t guaranteed, so you may get back less than you put in.

Slide 3. Agenda: What are we going to cover today?

Today we’ll be focusing on how to start getting ready for your retirement. We’ll cover the options for taking money from your pension,  getting your pensions into one place, where you can go for guidance and financial advice, investing your savings and the resources that can help you manage your pension.

Slide 4. Getting started

Getting started with any new task can often be the most challenging part.

So, with that in mind, in today’s session we’ll focus on some of the things you can do to help you get started, if you haven’t already.

And, for those of you who’ve already made a start, hopefully today will provide you with some new ideas to give your retirement planning an extra boost.

Slide 5. What will your retirement look like?

Picturing your future lifestyle is a good place to start.

To try and make this a little easier, we’ve broken this down into 3 broad categories, which, hopefully, will help you to identify the steps that you have or haven’t already completed.

1. Winding down

Are you intending to stop working altogether or would you prefer to simply work fewer hours?

This may well be determined by how much you have in your pension savings pot and how much money you’ll need once you start to wind down.

It’s estimated that around 1.5 million British people work beyond State Pension age. Some keep working because they need the money, others because they enjoy what they do and don’t want to stop.

2. Spending your time in retirement

How do you plan to spend your time?

It’s important to think about your lifestyle, not just your finances. If you’re a social person, connecting with others might be important to you.

Think about how your needs might change over time. It’s possible you’ll be more active in the 10 years immediately after retirement but might start to slow down after that. Planning for this now will help you to make decisions that consider your whole retirement and not just the early years.

3. Your personal and financial responsibilities

You’ll want to take care of your needs and those of family members.

Start thinking about where you might live, your caring responsibilities and any debts that you’re solely or jointly responsible for.

There’s a lot to think about.

Slide 6. Picture your future

Research carried out by the Pensions and Lifetime Savings Association (PLSA) shows that 77% of savers don’t know how much they’ll need in retirement.

The PLSA have created the Retirement Living Standards, based on independent research by Loughborough University, to help savers picture the kind of lifestyle they could have in retirement.

The standards show what life in retirement looks like at three different levels - minimum, moderate and comfortable - and what a range of common goods and services, including household bills and maintenance, food & drink and transport, might cost at each level.

Don’t forget, when working out what your income in retirement might be, to include all the possible sources, including any other workplace pensions, private pensions and the State Pension, as well as any part-time earnings or other savings or investments you intend to use to supplement your income in retirement.

Please note that the figures shown on the slide are based on people living outside of London, who are assumed to be mortgage or rent free, and reflect the annual amounts that would be needed after paying any Income Tax and National Insurance deductions (as applicable).

For more information visit retirementlivingstandards.org.ukOpens in new tab which you can access by scanning the QR code on the slide.

Slide 7. How much income will you need in retirement?

We’ve developed a Retirement living standards tool that can help you to work out how much you might need in retirement, either as an individual or as a couple.

It works with the PLSA’s Retirement Living Standards, and allows you to amend different categories of expenditure so that it’s relevant to your needs, helping you to identify an annual income that would provide you with the lifestyle you’re aiming for.

You‘ll find the Retirement living standards tool in your online account, which you can access by scanning the QR code on the slide. And because you have single sign on, you can also access this tool through the ourtesco.com website.

Please note that the figures shown on the slide are based on a single person living outside of London.

Slide 8. Will the State Pension be enough?

For the 2024/2025 tax year, the full State Pension is £221.20 per week or approximately £11,500 per year.

To receive a full State Pension, you need 35 years’ qualifying National Insurance (NI) contributions.  

You must have at least 10 qualifying years of NI contributions to receive any State Pension entitlement. 

As well as paying contributions while working, you can also ‘earn’ qualifying years by receiving NI credits if you’re unemployed, ill, parenting or a carer.  

You can check your State Pension forecast. Go to the gov.uk website to see what you might receive and when. 

Your State Pension age will be between 66 and 68 depending on when you were born.

However, even if you qualify for the full State Pension, this will be less than the amount required to support the PLSA’s Minimum lifestyle in retirement. And it will fall some way short of the amounts required to support a Moderate or Comfortable lifestyle in retirement.

So, as you can see, the savings in your workplace pension could provide you with an important source of additional income to support your preferred lifestyle in later life.

Slide 9. Make the most of your State Pension

If you have gaps in your record, making additional voluntary National Insurance (NI) contributions may help you to get enough qualifying years to receive the full State Pension.

You’ll need to get a State Pension forecast first  and then discuss your options with the Future Pension Centre. Scan the QR code on the slide for more information.

You won’t get your State Pension automatically - you have to claim it.

You should get a letter, no later than two months before you reach State Pension age, telling you what to do. If you don’t get a letter, you can still make a claim.

If you want to delay taking your State Pension, you don’t have to do anything. It will automatically be deferred until you claim it. Deferring your State Pension could increase the payments you get when you decide to claim it. Your State Pension will increase by the equivalent of 1% for every 9 weeks you defer. This works out as just under 5.8% for every 52 weeks. The extra amount is paid with your regular State Pension payment and, depending on your total annual income, could be liable to income tax.

Pension Credit can provide an additional safety net, if you’re on a low income. To find out more, go to the MoneyHelperOpens in new tab website, which you can access by scanning the QR code.

The State Pension is a valuable benefit, but it’s important to be aware that it’s unlikely to cover more than basic minimum living costs in retirement.

Slide 10. Your money in retirement

You'll need to take stock of what your retirement finances might look like, to work out when you might be able to retire and the lifestyle you would have.

In broad terms, your income in retirement is likely to fall into two different categories. Pension-related income and income from other sources.

Let’s start with pension-related income.

There are many different types of pensions and it’s quite possible that you already have - or will - contribute to more than one pension over the course of your working life. Your partner may have other pensions as well, although you may find that their pensions will have different selected retirement ages compared to yours.

The government provides a State Pension, which you may be entitled to receive once you reach State Pension age.

Your Legal & General pension is a Defined Contribution (DC) pension. It can provide you with money in retirement. How much you have at retirement will depend on things like, how much has been paid in, how the investments have performed and how much has been deducted in charges. The way you decide to take your money at retirement will also have an impact. As I mentioned before, you might have other pensions, including personal pensions and pensions from other employers. Knowing how these pensions work, and how much income they might provide you with in the future will form an important part of your retirement planning.  If you haven’t already done so, now might be a good time to dig out your old paperwork or go online to check your latest pension statements.

In addition, you may also be planning to supplement your lifestyle in retirement with income from other sources.

You may intend - or need - to carry on working in retirement, either full-time or part-time, to provide an income.

You may have other savings or investments, such as:

• Bank accounts
• Savings accounts
• Individual Saving Account (ISA)
• Lifetime Individual Saving Account (LISA)
• Shares or other investments like Bonds, Unit Trusts etc

If you own property, including your own home, you may be planning to use this to provide extra income.

Depending on your circumstances, you might also qualify for certain state benefits.

A good place to start, if most of this is new to you, would be the pensions and retirement section on the MoneyHelperOpens in new tab website. You’ll find lots of helpful information on saving for retirement, which you can access by scanning the QR code.

Slide 11. Saving for the future at Tesco

The table on the slide details the contribution structure for your scheme and highlights how, as a member of your workplace pension, both you and Tesco are already saving towards your future.

You can choose to save from 4% of your pensionable pay every 4 weeks.

Tesco will match how much you save up to a maximum of 7.5%.

If you want to pay more than 7.5% of your pensionable pay you can, but Tesco will only match your contribution up to 7.5%.

And when you save towards your retirement you benefit from tax relief and National Insurance savings if you pay contributions through SMART (also known as salary sacrifice).

You can change the amount you save into the Plan by changing your contributions in the reward and benefits, retirement savings section of the ourtesco.com website.

Providing you’ve notified Tesco in sufficient time for your request to be processed, your change will be made the next time you’re paid.

If you’re in the Plan and you’re not sure how much you currently pay, you can find out by logging into your online account from ourtesco.com  without the need for a password.  You can also log in to your online account outside of Tesco at legalandgeneral.com/mya.

Slide 12. Key messages from Tesco

The Tesco PLC Pension Scheme is a closed 'defined benefit' scheme. This scheme was available to Tesco colleagues before November 2015.

If you have questions about the Tesco PLC Pension Scheme, please email pensions.dept@tesco.com. We don’t have details of this scheme as it is different to the scheme that Legal & General look after the Tesco Retirement Savings Plan.

Please be aware that if you do have benefits in the closed scheme, you will get an update of your annual pension amount in your Total Reward Statement each year.

Slide 13. Taking money from your pension

As a member of a workplace pension, you have the flexibility to choose how you take your money at retirement.

We’ll look at these options in a bit more detail shortly but, before we start, if you’re aged 50 or over, we recommend taking the free guidance that’s available from a Pension Wise specialist to ensure that you understand the available options and the tax implications. 

You may also wish to consider taking financial advice. You can find an adviser in your local area by going to unbiased.co.uk. Please note that advisers normally charge for their services.

Slide 14.  How can you take your money?

The earliest you can currently access your pension savings in this scheme is from the age of 55.

You may be able to access your pension savings earlier than this, if you have an illness that means you’re unable to work again in the future or if you have a protected retirement age.  A protected retirement age was available for certain pension scheme members who, prior to 6 April 2006, had the right to take their pension benefits before age 55.

It’s also worth noting that the government has implemented legislation that will increase the age of access to age 57 from April 2028.

So, how can you take your money?

You can take your money in different ways and can choose the option – or combination of options – that suits your circumstances.

When you access your pension, you can usually take up to 25% of it as a tax-free lump sum.

Your ‘lump sum allowance’ (LSA) is the maximum amount of money you can take as tax-free lump sums from all the pensions you have. While you can still take out money over this allowance, you will need to pay income tax on it.

The lump sum allowance is £268,275. It will be higher if you have any protected tax-free lump sums, or a protected lifetime allowance.

The remaining 75%, however you choose to take it, will be taxed as earned income. The amount of tax you actually pay will depend on your earnings. The money you take from your pension may affect any income-related state benefits you receive.

You can use income drawdown to provide a flexible income.

The first 25% can normally be taken as tax-free cash, subject to any allowances. The remaining 75% you can take as needed.  This is often referred to as flexi access drawdown. You can vary, stop or suspend the amount you are taking any time. Your fund has the chance to grow but it could go down in value too. If you take out too much of your investment or the funds do not perform as well as you would expect you could run out of money before you die.

You can use your pension pot to buy a guaranteed income through the purchase of an annuity.

An annuity gives you a guaranteed amount of money payable for either a fixed term or for the rest of your life. There are different types available which will typically be bought through an insurance company. It’s important to shop around to find a provider and a deal that suits you. If you have certain medical or lifestyle factors such as smoking or high blood pressure, you might qualify for better rates.

You can take your pension pot as cash all in one go. Think carefully before you do this. It could result in a large amount of tax being deducted before we pay you.

You can take cash from your pot in smaller sums. Normally, the first 25% of each cash withdrawal will be tax-free, subject to any allowances. The rest is taxed as income. This may allow you to access your money more tax efficiently. What remains in your pot is still invested and the value of investments may go down as well as up.

You don’t just have to choose one option or one provider. You can choose different options for each pension pot you have. You can transfer all or some of your pension pot to another provider and have your benefits paid by them. However, you may lose your entitlement to any benefits that were protected, such as the ability to combine your defined benefit and defined contributions pots, the ability to access your pot before 55 or a tax-free cash sum greater than 25% of your pot. Please check this before transferring.

You can find more information on the different ways you can access your pension savings in the ‘Your options for taking your money’ section on your scheme website or by visiting the ‘Accessing your pension pot’ section of our Go&Live website.

Let’s recap the different options.

Slide 15. Drawdown: Things to consider

Also known as Flexi-access drawdown, this option normally allows you to take up to 25% of your funds as tax-free cash, subject to any allowances, while leaving the rest invested to provide a regular income, and occasional lump sums if required, which will be taxed as earned income.

This option also allows you the flexibility to vary, stop or suspend the amount you receive. 

Although this option may provide greater flexibility, there are still a number of other factors to take into account before deciding to take your pension savings in this way.

You’ll need to think about how long you may need your money to last, when deciding how much money to take and how frequently. You may need to consider taking financial advice.

The money that remains invested has the chance to grow but it could go down in value too.

The value of your pension pot isn’t guaranteed and, if you take out too much or your investment funds don’t perform as well as you’d expected, you could run out of money before you die.

Slide 16. Annuity: Things to consider

An annuity provides you with a regular, guaranteed income either for life or for a fixed period. Normally, when buying an annuity, you can take up to 25% of your funds as tax-free cash, subject to any allowances and use some or all of the remainder to purchase your guaranteed income.

However, as shown on the slide, there are a number of things to consider.

This option might be suitable if you want the certainty of a guaranteed income for both yourself and/or your dependants. It’s also worth being aware that smokers and those in poor health might qualify for an enhanced annuity rate, which basically means you’ll receive a higher guaranteed income for the same cost.

It’s important to be aware that if you decide to purchase an annuity, you can’t change your mind afterwards.

You should also be aware that the income you receive could be taxable. This means that you may have to pay tax on the income provided by your annuity, if your total income from all sources is more than the personal allowance, which is £12,570 in the 2024/25 tax year.

There’s also the possibility that, depending on how long you live, you might get less back than the purchase price of your annuity.

Slide 17. Cash: Things to consider

You have more than one option when it comes to taking your money as cash. However, before making your decision there are a few things to consider, particularly when it comes to the amount of tax you might have to pay.

Taking it all in one go

You have the option to take all your pension pot as a single cash lump sum. You can normally take up to 25% of your funds as tax-free cash, subject to any allowances. The rest will be treated as taxable income. This means that, if you take your pension savings in this way, you could end up paying more in tax compared to some of the other options available to you, particularly if doing it this way takes you into a higher Income Tax bracket.

You should also start to think about what you intend to do with this money and how long you need it to last.

It’s important to remember that, if it isn’t reinvested, your money won’t have the opportunity to grow and over time inflation will reduce what you can afford to buy with it.

You don't need to have stopped working to take this option, but you might want to give some thought to where your money will come from when you do stop working.

Taking it as a number of smaller lump sums

Should you wish to, you can leave your pension pot invested and withdraw your money as a series of smaller cash amounts.

The money that remains in your pot has the chance to grow but it could also go down in value.

Each time you withdraw a lump sum, the first 25% of that amount will normally be tax free, subject to any allowances, with the rest being treated as taxable income.

Taking your money in this way enables you to spread your lump sum amounts over more than one tax year and, as a result, could help to reduce the amount of Income Tax you have to pay on any withdrawal.

Slide 18. Tax on retirement income

Working out how much tax you’ll pay on your retirement income is an important part of your retirement planning.

You can do this yourself by following the steps outlined on the slide.

1. Take your State Pension.
2. Add income from your other pension(s) as well as any other sources, such as investments, to give you your ‘Total income’.
3. Take away your ‘Personal Allowance’ this is £12,570 in 2024/25.
4. This will leave you with your ‘Taxable income’ for the year.
5. Deduct Income Tax at the appropriate rate (this is a percentage of your earnings based on your income in the current tax year).
6. This will leave you with your ‘Income after tax’, in other words the amount of money you’ll have left to live on in that tax year.

Tax rates and any allowances may change in the future. How tax works for you will depend on your individual circumstances and you may need to do this calculation more than once if your retirement income changes.

Slide 19. Money Purchase Annual Allowance

If you start to take money from a Defined Contribution pension pot, the amount you can contribute to your Defined Contribution pensions - and still get tax relief – may reduce. This is known as the Money Purchase Annual Allowance (MPAA). 

You can normally pay the equivalent of your annual salary into your company pension plan each year and still get tax relief. However, there is an Annual Allowance and if you go beyond this, you may incur a tax penalty. The Annual Allowance is currently £60,000. 

This includes any contributions from your employer. But if you trigger the MPAA, this reduces to £10,000 a year (including contributions from your employer).

The MPAA will not apply if you buy a lifetime annuity, if you only take your tax-free cash or if you take benefits from a defined benefit scheme.

You can find out more on the MoneyHelper website, which you can access by scanning the QR code on the slide.

Slide 20. Getting your pensions into one place

You may have other pensions and want to know if you can transfer them to your employer’s pension scheme.

Slide 21. Consolidating your pensions

There are billions of pounds worth of unclaimed pension savings because people moved house and didn’t inform their previous provider! Could some of that be yours to claim?

If you do nothing else, it’s a good idea to let any previous pension providers know if you have – or are about to – change address.

There are lots of reasons why you might want to transfer an old pension to a different provider. You may want to make it easier to manage your pension savings (by having them all in one place) but it could also be about reducing your charges or improving your investment choices or the options that are available when you want to take your money.  

When it comes to deciding whether transferring your pension savings is right for you, there’s a lot to think about. You might want to start by comparing the charges and available options, to see whether a transfer would be beneficial. You should also check if there are any penalties for transferring out or whether you would lose any guarantees or special features.  

It’s important to be aware of pension scams. You can find out how to spot, avoid and report pension scams at the MoneyHelperOpens in new tab website.

You should also find out if you’re required to seek financial advice, as some schemes (depending on the value of your pot) may require you get a recommendation from a financial adviser. And, even if you aren’t required to do so, you may still want to seek financial advice. 

To find an adviser in your local area go to unbiased.co.uk, which you can access by scanning the QR code on the slide. Advisers normally charge for their services.

Please note, as we outlined at the outset, we’re only providing information in our presentation today. We aren’t able to provide financial advice and, as such, we aren’t recommending that a transfer is the right thing for you.  

Slide 22. My Future Now

My Future Now is a pension transfer service that you can access through your online account. It’s a simple way to combine all your pension pots in one place.

Here’s our step-by-step guide to transferring other pensions to Legal & General using My Future Now:

1. Read our guide to pension transfers, to consider whether it’s right for you, before making a decision to transfer.

You might want to such as make it easier to manage your pension savings (by having them all in one place), reduce your charges or improve your investment choices and the options that are available when you want to take your money.  But it’s also important to ensure that there aren’t any penalties for transferring out or that you wouldn’t lose any guarantees or special features.

2. Check that we can accept your transfer.

You’ll need to check the type of pension that you want to transfer, as there are some types of pensions that we can’t accept and others where you’ll be required to take financial advice.

3. Go to your online account, register for My Future Now and submit your request.

You’ll need your National Insurance number, the name of the pension provider and the policy number, if you have it.

Assuming we can accept the transfer, we’ll provide you with a summary checklist and ask you to sign a declaration that authorises Legal & General to make the transfer on your behalf.

4. If you provide the name of your pension provider and policy number.

My Future Now will proceed with your transfer request.

5. If you only provide the name of your pension provider.

My Future Now will trace your pension.  Once it’s been found, you’ll be notified and will then have 5 working days to opt out before it’s transferred automatically.

To find out more about this free service, go to our dedicated My Future Now website which you can access by scanning the QR code on the slide.

Slide 23. Guidance and advice

It’s important to get the support you need to help you make decisions about your retirement plans.

Slide 24. The importance of seeking guidance and advice

MoneyHelper is the government body that provides impartial financial guidance and support.

The MoneyHelper website has information about the costs and what you should expect if you decide to pay for financial advice.

Pension Wise is a service from MoneyHelper. It’s a free and impartial service that can help you to understand the ways you can take your pension savings and the potential tax implications of each one.  If you’re aged 50 or over, and you’re considering taking money from a Defined Contribution (DC) pension pot, we recommend that you book your free 60-minute appointment with a Pension Wise specialist who’ll provide you with guidance either face to face or over the phone.

The government also has a mid-life MOT website that provides guidance to help people carry out a financial stock-take some years before their retirement.

If you need personalised financial advice, visit unbiased.co.uk to find financial adviser in your local area. Please note that advisers normally charge for their services.

You can access these websites by scanning the QR codes on the screen.

Slide 25. Specialist help selected by Tesco

Tesco has reviewed some of the biggest financial advisers in the UK and chosen one that they think is suitable to give advice on the Tesco Retirement Savings Plan – Origen Financial Services. Tesco has also negotiated a competitive rate, so Origen’s advice is likely to cost you less than that from other financial advisers. Visit origenfs.co.uk, call 0800 230 0335 or email TescoPensions@origenfs.co.ukOpens in new tab

Retirement Line Service If you’re interested in receiving a regular pension income (annuity), for life or for a fixed number of years, you should shop around for the best deal. Tesco have selected Retirement Line, the UK’s largest pension income broker, to help you with this.

Retirement Line believe everyone should know how much guaranteed pension income they could receive, before deciding what to do with their savings at retirement. Go to retirementline.co.uk/tesco or call 0345 565 2601 to find out more and look for the best option to suit your personal circumstances. Please note that Tesco is not responsible for any information provided to you by Origen or Retirement Line. Other pension income brokers are also available.

More information is available on the scheme website legalandgeneral.com/tesco.

Slide 26. Helping you take the next step

To help you with your retirement planning, we’ve created 2 Open University courses, both of which are free and take around 4 hours to complete.

The Midlife MOT is aimed at people in their 40s and 50s who want some help when it comes focusing on their own financial and physical wellbeing. Completing this course will help you to assess your financial situation, understand how you can improve it and identify how much income you’ll need in retirement. It will also help you to look at your work life and assess your wellbeing.

Retirement planning made easy sets out the stepping stones to a more financially secure retirement. Completing this course should provide you with a better understanding of your finances in retirement, the different ways you can take an income from your pension savings and the impact that lifetime events can have on your retirement finances. You can access both of these courses via your scheme website or by scanning the QR codes on the slide.

Slide 27. Make your appointment with Pension Wise

Regardless of the size of your pension pot, if you have a Defined Contribution (DC) pension and you’re aged 50 or over, you’re entitled to free specialist guidance from Pension Wise, part of the government’s MoneyHelper service.

This guidance can help you to understand your retirement options. It will explain how each option is taxed and help you to identify your next steps. It will also provide information on how to avoid pension scams.

Your 60-minute appointment can be carried out over the phone or face to face. You can book your free appointment by calling 0800 138 3944 or by completing the online booking form, which you can access on the Pension Wise website by scanning the QR code. Please note that you’re only allowed one free Pension Wise appointment.

Slide 28.  Investing your savings

We’re going to take a little time to look at some of the things to consider, when it comes to your savings in this scheme.

Please note, that the purpose of today’s session is to help you to start planning for retirement and, as such, I’m unable to provide financial advice.

If you want help choosing your own investments, you should speak to a financial adviser. You can find one in your local area at unbiased.co.uk. Financial advisers usually charge for their services.

Slide 29. How are your pension savings invested?

Your scheme has a default investment option, which we’ll look at in more detail shortly.

A default investment option is a fund or lifestyle profile, into which your pension savings will be invested if you don’t make a different choice. It has been selected by Tesco and the Mastertrust Trustees in conjunction with their advisers.

Although it’s considered a suitable choice for most scheme members, the default investment option doesn’t take into account your personal circumstances or your future plans.

If you want to make your own investment decisions, you can find details of all the investment options that are available to you on your scheme website and or by visiting your online account, where you will also be able to make any changes.

If you’re thinking of making your own investment decisions, you should check whether the fund or lifestyle profile you’re considering matches your own attitude to investment risk and your plans in retirement.

You can also select investments that reflect the way you intend to take your money.

Some of the investment options available will move your pension savings into other funds as you approach your scheme retirement age, but others won’t. It’s important, therefore, to review where your pension savings are currently invested and whether this is in line with your plans.

Please be aware that the value of an investment and any income taken from it is not guaranteed and can go down as well as up, and you may not get back the amount you originally invested. Different funds have different associated risks. Please read the relevant fund documentation before making any investment decisions.

You may also want to take financial advice before making any changes to your investments. You can find a local financial adviser at www.unbiased.co.uk. Financial advisers usually charge for their service.

Slide 30. Your default investment option: Tesco Lifestyle Cash Option

The default lifestyle profile for your pension scheme is the Tesco Lifestyle Cash Option.

A lifestyle profile is an investment strategy that automatically moves your pension savings, over a period of time, into funds that reflect the way you want to take your money when you get to your selected retirement date, such as taking a regular income or cash lump sums.

The Tesco Lifestyle Cash Option is designed for members who intend to take all of their pension pot as a cash lump sum at their retirement date. It’s an investment strategy that offers you the potential to grow your pension pot in the long term. However, as you get closer to retirement lifestyles that target a cash outcome usually include funds that invest in cash, or short-term money market investments such as bank deposits and Treasury Bills. This aims to provide capital protection with growth in line with short-term interest rates, but this is not guaranteed.

This strategy may not be suitable if you don’t take pension benefits as intended from your retirement date. You should review your retirement date on a regular basis, as it will determine where your pension pot is invested as you approach retirement. This lifestyle profile may not be suitable for you and your individual circumstances and there are other investment options available to you.

For more information, including a more detailed explanation of the aims, please see the lifestyle profile factsheet.

Slide 31. Things you should be thinking about

It’s important, particularly as you approach retirement, to ensure that your pension savings are invested in a way that reflects the way you want to take your money and when.

If you haven’t done so already, you should ask yourself a couple of key questions.

1. When do you intend to access your pension savings?

Is your selected retirement date correct? Unless you’ve changed it yourself, this will automatically be set at the default for your scheme.

It’s important that you review it on an annual basis, or if your circumstances change, to consider whether you still intend - or can afford - to take your money at the date which has been set.

If your selected retirement date no longer reflects your circumstances or your plans, you may want to consider changing it. This is particularly relevant if you’re invested in a lifestyle profile or a Target Dated Fund that moves your pension savings into different funds or asset classes, as you get closer to your selected retirement date.

You can do this in your online account.

2. How do you plan to take your money?

You have a range of options when it comes to taking money from your pension pot.

Knowing how you intend to take your money can help you to choose investments that not only reflect your intentions but also the level of investment risk that you’re willing to accept.

All investments carry a degree of risk and it’s important that you understand, and are comfortable with, the risks you're taking before making any investment choices.

You can find out more about investment risk in our ‘guide to risk and reward’, which you’ll be able to access by visiting your scheme website or by going to your online account.

You can access your online account by scanning the QR code.

Slide 32. Do your investments match your plans?

We’ve talked about investing your pension savings in a way that reflects your plans and how you intend to take your money. As shown on the slide, you can use income drawdown to provide flexible income, use your pension savings to buy an annuity, take your money as cash, or combine two or more of these options. 

If this is something you haven’t really thought about, then you might want to start by asking yourself 3 questions.

1. Are your pension savings invested in a way that matches how you plan to take your money?
2. Are there other investment options that may be better suited to the way you’re planning to take your money?
3. If your current investments target a particular date, does this match when you plan to take your money?

If you haven’t already, you might want to look at the investment guides and factsheets, which are available on your scheme website, and could support your understanding.

Slide 33. Helping you to understand your options

We have a range of helpful guides and tools that can help you to understand your investment options and to start thinking about the things to consider when it comes to making your own investment decisions.

You can find all of this information in the helpful resources, forms and documents section of your scheme website at legalandgeneral.com/tesco.

You also find detailed information on the default option and the other range of funds available.

Slide 34. Helpful resources

We want to help you take control of your money and give you the confidence to plan for the future.

To help you with this, we provide a range of useful tools and resources.

Slide 35. Managing your pension

You can manage your pension savings with Legal & General using your online account.

It’s a bit like ‘internet banking’ for your pension. In the same way most of us manage our bank accounts online these days, you can use your online account to manage your pension savings.

You can access your online account via ourtesco.com without the need for entering a password.

You can also access your online account by scanning the QR code on the slide.

Once logged in to your account, you’ll be able to

• see the current value of your pension pot and contributions received from you and your employer.
• use our planning tools to regularly check what your pension pot might be worth at retirement and to work out if you might want to increase your contributions or change your retirement date.
• provide details of who you’d like your pension benefits to go to in the event of your death (nomination of beneficiary).
• manage how your pension savings are invested, including viewing your current fund performance and other investment choices available to you and changing the way your pension savings are invested if needed.
• view your benefit statements and other important documents.
• change your selected retirement date if it no longer reflects your plans.

Slide 36. The Legal & General App

The Legal & General App gives you everything you need to manage your workplace pension in the palm of your hand!

With complete access to your online account, you can carry out all the tasks we highlighted on the previous slide from your tablet or mobile phone.

If you’ve already registered for your online account, you can log in using the same username and password.

If you haven’t already downloaded it, you can do so from the App StoreOpens in new tab or Google PlayOpens in new tab, which you can access by scanning the QR codes.

Slide 37. Care Concierge

Our Care Concierge service is available for free through your scheme website.

Putting care provision in place for a loved one can be a daunting and confusing experience, that could cause significant disruption in your life. Our Care Concierge service can help.

It’s a confidential telephone guidance service which allows you to speak directly to an expert about finding later life care for yourself or a loved one.

They can help you find answers to questions such as:

• What is a Power of Attorney and how do I set one up?#
• What type of care is available for my loved one, and how do I find it?
• Are benefits available to me?
• What questions should I be asking care providers?
• How do I access support from my local authority and what help is available?
• How much does care cost and who pays for it?

The friendly and helpful Care Concierge team aim to understand your specific situation and requirements, and help you work out what your options are, at no cost.

You can access as much help as you need and be supported to find the right care, regardless of what type.

Slide 38. Summary

We’ve covered a lot of ground today.

Let’s reflect on what we’ve looked at and think about the steps you could take to firm up your plans for retirement.

Slide 39. Reminders

Start taking stock.

Think about where your income in retirement might come from and start thinking about how much you might need.

Create your retirement plan.

You’ll find information about your plan and lots of helpful tools in your online account and on your scheme website.

Our free Open University courses could also help.

Speak to Pension Wise.

Find out about the different ways you can take your money and work out what’s right for your individual circumstances.

Don’t forget about tax.

Think about the tax you’ll pay when taking your money. And don’t forget about the tax benefits of pension saving.

Seek financial advice.

You might want to speak to a professional adviser, before finalising your retirement plans.

Make it happen.

When you’ve done your research, get in touch with us and put your retirement plan into action.

Slide 40. Thank you. Any questions?

It just remains for me to thank everyone for attending our event today. We hope you found it useful.

For further information please see your scheme website or go to your online account.

Our helpline team are also available to support you on the number shown on the slide between the hours of 8.30am and 7pm Monday to Friday. Please note that call charges will vary. We may record and monitor calls.

I’m just going to take a look at some of the questions we’ve received from the audience today, with the time that’s left.

Thank you.

Legal & General WorkSave Mastertrust and Legal & General WorkSave Mastertrust (RAS) are authorised and regulated by The Pensions Regulator.

Administrator: Legal & General Assurance Society Limited. Registered in England and Wales No. 00166055. Registered office: One Coleman Street, London EC2R 5AA.

Legal & General Assurance Society are authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. However, the administration of occupational pension schemes is not regulated by the FCA or PRA.