Two pounds of potatoes, a packet of cornflakes... and a pension, please.

Customers at Tesco in Dringhouses, York, will soon be able to buy a pension plan with the weekly groceries.

The Tadcaster Road superstore is one of 20 chosen by Tesco to market its new pension plan from next autumn, although a similar service is offered by Marks & Spencer.

The pension plan is a joint venture between Tesco and Scottish Widows - it is being marketed as a "cheap" but flexible plan.

David Graham, incoming chief executive at Tesco Personal Finance Life, said the plan was designed to appeal to shoppers who were "unfamiliar and uncomfortable buying financial products". Once the 20 Tescos have blazed the trail, the rest of the nation's branches will follow and that includes the Tesco superstores in Clifton Moor, Selby and Goole.

From £30 a month, consumers can choose between five different pension funds - all low-cost tracker funds, typically charging only one per cent for annual management fees.

There are no hidden charges, so policyholders can take payment breaks without being penalised.

Tesco is also offering a freephone number so consumers can talk to a financial adviser about pension planning, although the advice will be confined to the Tesco product.

Marks & Spencer offers an execution-only service for pensions. This means consumers have to decide themselves which fund to join - they will not be offered advice. As with other financial products offered by Tesco, shoppers receive bonus points on their clubcard as an incentive to join.

Tesco Pensions is the latest product to be launched within the Tesco personal finance portfolio. Other products include Tesco Loans, Tesco Clubcard Plus, Tesco Savings Account, Tesco Visa Card and Tesco Home Insurance.

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