SSAS

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.

What is an SSAS?

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:

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.

What our clients say…

Have your pension policy to hand?

Start your free, no obligation pension consultation online

Click here

Why Pension Works?

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

Find out more

Who we work with

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.

Find out more

*Defined Contribution Pensions*	These are ‘Pot of Money’ pensions where the benefits provided take into account the value of the fund at retirement. They can be personal pensions or Occupational Pensions. There are no guarantees as to what pension will be provided. This will be a reflection of contributions made and investment growth.
*Defined Benefit Pensions*	These offer the promise of a guaranteed pension at retirement which reflects the length of service with an employer. It will be based on either the Final Salary or Average Career Salary of the employee. Providing the company is still in existence, there is no investment risk for the pension receiver. This type of pension is becoming less frequent.
*Private Pensions*	This is a generic term for pensions that are not workplace schemes.
*Group Personal Pensions*	Employer-sponsored schemes – each member has a personal pension plan, and their contract is with the pension provider. The employer’s role solely is to select the scheme provider, decide if there should be any restrictions on fund choices and take contributions from the employee’s pay and forward them with employer contributions to the pension provider.
*Self-Employed Pensions*	A private pension arrangement or personal pension is taken out by a sole-trader or self-employed worker.
*SERPS Pensions*	State Earnings Related Pension (formerly Graduated Pension and subsequently State 2nd Pension or S2P) was an additional element of State Pension for employees. The amount of pension was linked to the employee’s salary. SERPS was abolished in 2016 when the flat rate State Pension was introduced.
*Personal Pensions*	Private pensions are contracts between the pension member and an insurance company or another pension provider.
*SIPP Pensions*	These are personal pensions where the member has a much wider choice of investments, including commercial property and single company shares.
*Stakeholder Pensions*	Personal Pensions with a set of rules that impose amongst other things a maximum annual management charge (AMC), low minimum contribution levels (£20 per month) and an appropriate Default fund.
*FSAVC Pensions*	Private pension linked to an employer’s Defined Benefit Scheme but separate from the Scheme’s internal Additional Voluntary Contribution (AVC) arrangement – largely defunct since the rules were eased several years ago, allowing people to contribute to both personal and employment schemes as they wish.
*Money Purchase Pensions*	This is another name for Defined Contribution Pensions.

What is an SSAS?

Free Pension Check Form

What is an SSAS?

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

How do SSAS work?

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

SSAS

SIPP

How can Pension Works help?

What our clients say…

Have your pension policy to hand?

Why Pension Works?

Who we work with

Free Pension Check Form

About us

Need help?

Helpful Information