Tesco Becomes First Major Firm To Move Pension Age From 65 To 67

[interestrateripoff]

http://www.telegraph.co.uk/finance/personalfinance/9142086/Tesco-becomes-first-major-firm-to-move-pension-age-from-65-to-67.html

The supermarket group told its 200,000 workers yesterday that it wants to raise by two years the age at which they can claim their full pension.

The company, Britain’s biggest supermarket, also announced that it intends to move the inflation index it uses to calculate annual payment increases from the retail prices index (RPI) to the “cheaper” consumer prices index (CPI), which excludes mortgage payments, council tax and house price depreciation.

Every little bit helps...

Although I'm guessing this won't count for the top execs who are worth it?

[SarahBell]

200,000 for what % of GDP?

Isn't it 1 in every 7 £ spent at tesco?

[Butthead]

Can't believe you've overlooked:

The company, Britain’s biggest supermarket, also announced that it intends to move the inflation index it uses to calculate annual payment increases from the retail prices index (RPI) to the “cheaper” consumer prices index (CPI), which excludes mortgage payments, council tax and house price depreciation

[SHERWICK]

Can't believe you've overlooked:

house price depreciation

Does not compute.

[Gone baby gone]

I don't want to shop at Tesco.

I don't want to work at Tesco.

I think I'm at the stage I don't want anything to do with Tesco.

[porca misèria]

This was on the Today programme, just before 9am. AIUI,

• Commentators consider it inevitable that private sector employers follow the government's lead (I agree it seems most practical if the default retirement age is also state pension age, so any change from that is a deliberate decision).
  
• Existing entitlements are unaffected, so older employees can retire at 65 with most of their entitlement (hey, that's a lot less unfair than the government's cliff-edge thresholds between one birthday and the next day).
  
• Tesco still operates a defined-benefit scheme, and hasn't closed it as most employers have!
  

[longtomsilver]

The life expectancy bubble needs lancing. This will only rob the poor of the very small window of good health at the end of a long, hard and miserable working life.

Serious decline affects most people from 73 onwards. 73-65=8 and 73-67=6 so I conclude most people will enjoy 33% less retirement in the sunshine.

Every little hurts.

Edit: revised up from 25% to 33%.

Edited March 14, 2012 by 30k

[Lagarde's Drift]

Tee hee. I get another chance to post this:

There is no pension

[Diver Dan]

Tee hee. I get another chance to post this:

There is no pension

Here's the reality of even doing just an internship in a supermarket.

Edited March 14, 2012 by Diver Dan

[workhou]

What is it with Tescos? They are utter cu*ts. They should be blackballed.

[Dorkins]

I really don't understand why people still expect their employers to sort out their pension for them and tell them when they are allowed to retire. It's ridiculously paternalistic. Employers should be giving their employees the money they are now putting into the pension as pay and let them invest it (or not) however they want.

[Butthead]

I really don't understand why people still expect their employers to sort out their pension for them and tell them when they are allowed to retire. It's ridiculously paternalistic. Employers should be giving their employees the money they are now putting into the pension as pay and let them invest it (or not) however they want.

This type of freedom is only a good thing if the same people don't spunk their cash on iPads and holidays to Ibiza and then get to old age and have a right to expect someone else to provide for them.

[porca misèria]

I really don't understand why people still expect their employers to sort out their pension for them and tell them when they are allowed to retire. It's ridiculously paternalistic. Employers should be giving their employees the money they are now putting into the pension as pay and let them invest it (or not) however they want.

You always have that option (less the taxman's cut, which could be up to 76%).

But when an employer like Tesco offers more generous terms than that, they can't just go and withdraw it!

[Dorkins]

You always have that option (less the taxman's cut, which could be up to 76%).

But when an employer like Tesco offers more generous terms than that, they can't just go and withdraw it!

Of course I have that option, except that my employer wouldn't give me its pension contributions for me to invest myself. I'd only get my contributions. It would be a voluntary paycut.

[Lagarde's Drift]

Yes, the sweeteners look good, don't they? A dealer may do the same thing, throw in some hash for free. Get hooked on this and pay in for life beeatch.

[Snafu]

What's wrong with working until you're 67?

Serious question? I'd rather have another 2 years of earning good money before retiring instead of (let's face it) a pretty dire pension. I am not on a final salary scheme. So if this working until 67 happened in the company I work for (which I am sure it will) - I wouldn't see that as a bad thing. Realistically though, you'd probably be asked to retire early anyway when you reach 60 going by how things are going.

I guess everyone has different goals in life, and some want to retire early. Well, then plan for it yourself? I just don't see working until 67 as a bad thing.

[RufflesTheGuineaPig]

Tee hee. I get another chance to post this:

There is no pension

See. He understands it.

[FIGGY]

I woudl love to see the CPI switch come back a bite them in the ass. Jap style deflation on property would swing RPI lower and keep CPI high

[monkeyman1974]

What is it with Tescos? They are utter cu*ts. They should be blackballed.

Superb, I was on its Grad training scheme in the mid 90's. Utter shit-bags to suppliers.

[winkie]

What's wrong with working until you're 67?

Serious question? I'd rather have another 2 years of earning good money before retiring instead of (let's face it) a pretty dire pension. I am not on a final salary scheme. So if this working until 67 happened in the company I work for (which I am sure it will) - I wouldn't see that as a bad thing. Realistically though, you'd probably be asked to retire early anyway when you reach 60 going by how things are going.

I guess everyone has different goals in life, and some want to retire early. Well, then plan for it yourself? I just don't see working until 67 as a bad thing.

Depends on the type of work you do, a desk job or a manual job such as a roofer ...... also health plays a big factor as to whether you can or can't continue working in the job you are used to doing, a job that pays......a job that ends up not paying so well may be the force to do something different, something better, something new for less hours but also less pay.

[Lagarde's Drift]

Depends on the type of work you do, a desk job or a manual job such as a roofer ...... also health plays a big factor as to whether you can or can't continue working in the job you are used to doing, a job that pays......a job that ends up not paying so well may be the force to do something different, something better, something new for less hours but also less pay.

Assuming you can stay in the same job. What desk jockeys don't realise is that they will get kicked out at 55, having to switch to a menial shelf stacking job (at Tesco), with their eye firmly on the pensionable age which somehow keeps getting further and further away. What's wrong with working till 67? Ask those who are in their sixties.

[winkie]

Assuming you can stay in the same job. What desk jockeys don't realise is that they will get kicked out at 55, having to switch to a menial shelf stacking job (at Tesco), with their eye firmly on the pensionable age which somehow keeps getting further and further away. What's wrong with working till 67? Ask those who are in their sixties.

.....kicked out at 55, I would think it would depend on who you were, where you stand and what you are worth....shelf stacking at a supermarket is not something to be taken lightly, it is something you do when you have debt and big bills to pay.....other 60 somethings do work, some very hard but in jobs that do not pay a wage as such.

[the gardener]

200,000 for what % of GDP?

Isn't it 1 in every 7 £ spent at tesco?

They don't get a penny off me. I'm boycotting them over the slave labour scheme.

Used to spend £100+ per week there. Never again.

[longtomsilver]

They don't get a penny off me. I'm boycotting them over the slave labour scheme.

Used to spend £100+ per week there. Never again.

I boycotted Tescopoly over the workfare con - cut my spend there from ~£500 a month to <£10 (driving past need milk kind of act).

[billybong]

Somebody at say age 60 might well welcome the opportunity of getting in an extra 2 years of employment before retirement and would actually gain a financial benefit from those extra years but I imagine for younger people with more years to work the overall income figures for a working life will be manipulated downwards so that over a working lifetime there's little or no net benefit. Ok a lot of people will still want to work the extra 2 years at the end of their working life but in total it's still a raw deal.

(E.g the 2 extra years implies that on average there'll be more workers available than there would be otherwise - so downward pressure on an individuals total income over a working lifetime - on average).

Edited March 15, 2012 by billybong