Tesco is pushing out a £1 a day pension across its stores nationwide in a bid to attract customers it says are tired of complex pensions and aggressive selling.
The pension is being sold through Tesco Personal Finance Life and is a joint venture with Scottish Widows.
It is designed to be simple to understand and can be started from as little as £1 per day. It also allows the plan holder to vary payment levels and take holiday breaks without penalty.
The plan offers a choice of five funds, which are the UK Growth Fund, the Balanced Growth Fund, the International Growth Fund, the Fixed Interest Fund and the Cash Fund.
An upfront charge of 4 per cent will be deducted from the every premium invested which will be reduced to 2 per cent if the plan is taken out during the launch period between October and February 1999.
The annual management fee is 1 per cent and no charge will be incurred for changing the retirement date. The minimum monthly contribution is £30.
It is initially rolling the pension out in 300 stores across the country, but expects it to be available in all of its 580 stores by early next year.