What is a SSAS
and what are your options?
A SSAS (Small Self-Administered Pension Scheme) is a type of defined contribution pension. This is set up by an employer that is separate from the general workplace pension scheme but gives the business additional investment flexibility.
A SSAS is like a Self-Invested Personal Pension (SIPP) in the way that the trustees decide where and how the funds are invested for future growth.
What is the difference between a SSAS and a SIPP (Self-Invested Personal Pension)?
Both are self-managed and reliant on the investment decisions of the owner/trustees. The main differences are:
Greater flexibility with the investments
Can lend funds back to the company
Run by trustees – not an individual
Usually only available to business directors or senior management
Anyone can open a SIPP
Higher running costs than an SSAS
The SIPP provider is the trustee
Cannot lend money to your business from a SIPP
Who can invest in a Small Self-Administered Scheme?
Small Self-Administered pension Schemes are usually set-up to provide retirement benefits for small business owners, directors or senior members of staff. They can also be opened up to all employees and their family members even if they don’t directly work for the business but generally limited to a small number of members.