Partner-1 SIPP vs Partner-2 workplace pension

jainraghav74

This post is a branch from my post at: forums.moneysavingexpert.com/showthread.php?t=6011256 (Cant post links at the moment)

Wife has no income or pension account.
Husband is 40% taxpayer (before and after pension contribution)

Should we open SIPP for wife and get £720 top-up on £2880 contributed. This £2880 will come from husband salary after tax and NI deduction.

Or, should we contribute more in husband workplace pension scheme and get 40% tax relief?

Is there any other benefit of having account open in name of both husband and wife?

The family does not have any WILL setup and don't have any Life/Critical Illness cover - just in case that affects the decision.

Dazed_and_confused

One of the common things mentioned here is use of the wife's Personal Allowance in retirement.

It is possible that she may be able to take the entire pension pot without ultimately having any tax to pay on it whereas husband might be paying 20% or 40% on all bar the TFLS.

But there are other things than tax to consider.

Brynsam

What's to stop you both sorting out wills now? As for life/critical illness cover - if you have children, what would happen to them (ditto if you don't have wills and both die)?