Civil Service pension scheme - Alpha Vs Partnership

Mungo_Jerry

Hello,

I will shortly be needing to choose between the Alpha or Partnership scheme when I start employment with the Civil Service. I know next to nothing about pensions.

A bit of background, I'm 54 and until recently I was an expat having spent most of my working life overseas. No pension provision here in the U.K. at all, bar 8 years of NI contributions when I was in my 20's. I do have investments which I have made instead, which I will rely on at retirement.

Any guidance or advice that I should consider?

Many thanks

Emmia

Worth a read

alpha or partnership? - Civil Service Pension Scheme https://www.civilservicepensionscheme.org.uk/joining-the-pension-scheme/alpha-or-partnership/

Personally I would go for Alpha as a Defined Benefit Pension (income certainty), but which is better will depend on your other "nest eggs" and when you're considering accessing them

QrizB

You might like to fill some previous years of NI contributions while you are able. This could give you 26-27 years total when you reach state pension age.

feynman33

I just joined at 48 with only minor prior pension provision. I didn't delve too deeply but couldn't see past Alpha, good as it gets for a DB pension. If you don't need access before state retirement age Alpha will certainly be better pound for pound value than Partnership.

hugheskevi

At age 54, alpha is better than Partnership. If you were young it would be much more of a decision. Partnership employer contribution rates are broadly based on the value of alpha accrual, and as alpha is more valuable to older workers, Partnership contributions rates are higher the older you are. 

However, Partnership contribution rates are capped at age 46 and as you are well above that alpha is going to be better than Partnership.