Tesco workers to check out at 67

Stat of the day: 67. Tesco is hoping to raise the retirement age of its staff by two years.

by Rebecca Burn-Callander
Last Updated: 09 Oct 2013

If the move goes ahead, Tesco will be the first major British company to raise the retirement age. More than 170,000 staff will need to graft for an extra two years in order to receive their full pension. They will be able to retire, as normal, at 65 if they choose, but they will see a reduction in their pension pot.

Tesco is also planning to make another significant change: it will increase staff pensions in line with the consumer price index (CPI) instead of the retail price index (RPI). This could, potentially, leave workers worse off (according to current CPI vs. RPI rates).

But the supermarket giant, which is also Britain's largest private sector employer, insists that its staff are still getting a good deal. For one, it is one of only four FTSE 100 companies to have such benefits still in place, it says. And it is still open to new workers, unlike Unilever and Shell, for example. 

'We are keeping one of the best pension schemes in Britain and making some essential changes to ensure it is sustainable for the future,' read Tesco's statement.

This may be true, but it's unlikely that staff will be cheering in aisles at the thought of postponing their retirement dreams by two, long years...

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