Benefits For Members
Whether you’re employed, self-employed or not working, the BCF pension is a simple, flexible and cost-effective fund for people who want to set up a comfortable retirement aligned with Brethren Community principles.
Pensions are one of the most tax-efficient ways of saving for retirement. If you work in the UK, the government will give you tax relief on your savings, which will be added to your pension pot. And you may have the option to take a tax-free lump sum when you retire.
When you contribute to your pension fund, the government will add 25% of the contribution as basic rate tax relief. For example, you contribute £800, the government adds £200 giving you £1000. Higher Rate taxpayers can claim back a further £200 via their tax return, making the actual cost of the £1000 in your pension pot only £600! Further tax relief can be claimed by Additional Rate taxpayers.
At any time after the age of 55 you can begin drawing money from your fund. You have the option when you first start taking money out to take a tax free lump sum of up to 25% of your fund value; the balance of the fund can then be used to provide a taxable income in your retirement.
Alternatively, you may decide to take a series of lump sums from your pot; if you do this then 25% of each lump sum will be tax free, with the other 75% taxed as income.
Money in your pension pot can grow faster because the growth is not subject to any personal taxes. All interest on cash deposits is tax free and there is no tax payable on gains in property funds. Also, if you die before taking any money from your fund, then the money in your fund will normally be paid, free of Inheritance Tax, to the persons you have nominated.
For many people it is very reassuring to know that however their circumstances change, the money they’ve saved in their pension pot will be there when they retire and they won’t have to rely on the State Pension alone. The money paid into a pension is invested with the aim of making it grow so that it’s worth more when you retire. Once you reach retirement age the money is yours to use how you decide.
Under Automatic Enrolment almost all UK employees have the opportunity to save into a workplace pension scheme and get additional contributions from their employer and the Government. There are advantages for both you and your employer if you arrange with them to make contributions directly into your pension fund on your behalf.
As with all pension schemes, there’s a lot of information which can be confusing. Whether you are employed, self-employed or not working, you can start saving into a pension scheme for your retirement.
To help simplify things, we’ve broken it down into three steps:
Our simple charging structure at BCF is designed to keep costs as low and transparent as possible. As a not-for-profit organisation, our fees are used to manage investments, keep the Scheme running smoothly and provide a high quality service in line with industry best practice.