• The Financial Times reports that Tesco is taking steps to raise the retirement age for its employees from 65 to 67 as a way “to slow the rate at which pension payments rise.”
According to the story, “Tesco emphasized that an older retirement age did not mean that workers would have to work until 67. Rather, workers will see their earned pension benefits-to date rise, with a target retirement age of 65, but benefits thereafter will see a slower rate of accrual to age 67.
“Tesco said it believed the changes were necessary to limit risks such as unexpected rises in life expectancy. When the first Tesco pension scheme was created in 1973, the company expected retirees to live until aged 77. Now, a 40-year-old Tesco employee is expected to live until they are 90 years old.
According to the story, “Tesco emphasized that an older retirement age did not mean that workers would have to work until 67. Rather, workers will see their earned pension benefits-to date rise, with a target retirement age of 65, but benefits thereafter will see a slower rate of accrual to age 67.
“Tesco said it believed the changes were necessary to limit risks such as unexpected rises in life expectancy. When the first Tesco pension scheme was created in 1973, the company expected retirees to live until aged 77. Now, a 40-year-old Tesco employee is expected to live until they are 90 years old.
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