Supermarket’s pension age to increase to 67

TESCO is looking to make major changes to its pension scheme, which will see the supermarket’s 172,000 staff wait two years longer to obtain their full pension.

The grocer has begun a consultation about extending the retirement age for members of its pension scheme from 65 to 67 from 1 June as it looks to ease burgeoning costs, due in part due to people living longer.

However, Tesco emphasised that it will be keeping its defined benefit scheme open to new members and that staff could still choose to retire after the age of 55.

The defined benefit scheme, which has a total 293,000 members, is based on average pay throughout workers’ careers and Tesco remains one of the few large companies to offer such benefits.

Tesco also plans to switch from the Retail Price Index to the currently lower Consumer Price Index to measure contributions to staff pension pots.