You should consider the lifestyle you wish to have when you retire and how much it might cost.
- Pensions UK and Loughborough University have colloborated to develop the Retirement Living Standards (RLS) which are designed to help individuals picture what kind of lifestyle they could have in retirement and the costs involved.
The figures show how much someone may spend at retirement across three different living standards, they are an estimated expenditure, not an income. They assume you own your own home with no mortgage so you may need to add or reduce other costs depending on your circumstances, such as mortgage, rent or social care costs and any income tax on your pension. Also remember, your income may be taxed, so plan for that too. Please follow this link to access the Retirement Living Standards website.
The RLS does not currenlty include any housing rentals costs in the headline figures, but for those who may be continuing or entering the private rental market statistics on average rental costs around the country can be found here Private Rental costs (2025)
- If you can afford it, you may wish to top up your pension fund by making Additional Voluntary Contributions (AVCs) and this can be arranged by contacting Broadstone Consultants & Actuaries Ltd, the Scheme administrators. If you are unsure whether paying AVC’s is right for you, then please seek independent financial advice.
Important: see the notes below for limits on pension saving tax relief.
Taxation
UK tax legislation limits the value of pension benefits that anyone can earn each year without incurring an 
additional tax charge.
If you save more than this set amount in the tax year (including employer contributions and AVCs) in total across your Baptist pension account AND any other pension schemes to which you may contribute, then you may be subject to such a tax charge.
Removal of the lifetime allowance
The lifetime allowance was a limit on how much could be saved into a pension during your lifetime before additional tax charges were applied. The Government removed the lifetime allowance from 6 April 2024.
What is the impact on my Pension Benefits?
Since 6 April 2024 onwards there is no longer a limit on the value of pension benefits that can be built up without any additional tax charge. The Government have introduced three new lump sum allowances. Between them, they act to limit the tax-free benefits from a pension in a similar way that the lifetime allowance framework did. Additional information on the three lump sum allowances can be found here Rules regarding Individual Lump Sum Allowances
For more information on taxation and contributions please refer to the Minsters & Staff Section and Basic Section explanatory booklets in the Document Store.
IMPORTANT
Tax legislation is very complicated, so if you think you might be affected, you should seek advice from an accountant, tax advisor or independent financial advisor. Neither the Scheme administrators nor your church/employer can give you tax advice about your pension.