What is an SSAS?

An SSAS or 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. An 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.

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What is an SSAS?

An SSAS or 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. An 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.

Who can invest in a Small Self-Administered Pension Scheme?

Small self-administered pension schemes (SSAS) usually are 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.

How do SSAS work?

As trustees of the company’s pension scheme, business owners or directors make the key decisions of where the funds are invested. The major benefit of an SSAS is the flexibility on where the funds can be invested, this may include the business’ premises and other fixed assets that could grow in value. For example, the pension scheme could purchase the business’ premises and lease the property back to the business which would then pay a rental income to the pension fund. Of course, this would be subject to terms and conditions, so it’s advisable to speak to an independent financial adviser.

All of the SSAS’ assets are held in the name of the trustees – there are no individual pension pots for the scheme members to draw from, but each member is recognised to hold a percentage portion of the assets of the scheme.

What is the difference between an SSAS and a SIPP (Self-Invested Personal Pension)?

Not much in truth, both are self-managed and reliant on the investment decisions of the owner/trustees.

The main differences are:

SSAS

  • 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

SIPP

  • 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

How can Pension Works help?

When making your own investment decisions, it’s wise to get the performance of your pension regularly evaluated, to see how your investments have performed against the market and if you’re on track.

At Pension Works, we can assess your current pension performance and if appropriate, make recommendations to secure your retirement funds.

Call 0808 164 2664 today or fill out the form above.

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Our open and transparent service always puts you first, and our advice would be in your best financial interests.

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As independent financial advisers, we are not tied to any pension provider. This allows us to work with the whole of the market; ensuring we find the right pension for you.

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