Civil Service Alpha Pension and SIPP - How much can pay into SIPP this tax year

cashkingzac

Hope someone can help as just can't seem to get a clear answer on this one. Wife and I are looking to retire in couple years, wife is 48 currently, so for the first 7/8 years our funds will come from my pension. We are wanting to maximise her pension payments for our final two years, so usually no problem to work out what we can pay into her pension. However she will start to pay into Alpha Civil Service pension from January 2026, so we are wanting to know what is the most she can pay into her SIPP this tax year and what she can next tax year. Salary will be around 28k for the full year. She will be paying 4.6% of salary into Alpha pension

Isthisforreal99

Will she actually work for CS for at least 2 years? Less than 2 years won't get a CS pension. Would be a refund of contributions or a transfer. 

Partnership may be a better option if service will be short.

cashkingzac

Yes she is going to do the 2 years, we just want to maximise SIPP contribution ready for when she can get her pension - as will enable her to take some tax free cash to slow reduction on my SIPP

Isthisforreal99

Civil Service pension is net pay scheme so her taxable pay will be net of the 4.6% contribution. She can then pay 80% of her total taxable pay into a SIPP.

Remember that Alpha NPA is whatever your state pension age is. Opting for partnership (a DC pension) would give access at 57 (based on your wifes age)