A Small Self-Administered Scheme (SSAS) is a tax-efficient occupational pension scheme designed for small business owners and company directors who want greater control over their retirement savings. Unlike traditional workplace pensions, a SSAS allows members to directly manage investments, offering increased flexibility in how funds are allocated.
A SSAS is set up by a company for its directors or key employees, with both the company and members able to make tax-efficient contributions. The scheme is run by trustees, typically the members themselves, who decide how the pension funds are invested.
Tax Advantages
Contributions receive tax relief, and the money grows tax-free, with no capital gains or income tax on investment returns within the SIPP.
Wide Range of Investments
You have access to a broader spectrum of investments compared to standard pensions, making it easier to diversify and potentially increase returns..
While the flexibility and control of a SSAS are appealing, it’s important to note that they require a higher level of management and expertise compared to standard pension schemes. The trustees are responsible for ensuring compliance with pension rules and managing the scheme’s investments appropriately. Additionally, SSASs can be more costly to set up and maintain, making them more suitable for larger businesses or those with significant pension assets.
A SSAS provides an opportunity for small businesses and directors to take control of their pension planning, offering flexibility in investments and potential tax advantages. However, it requires careful management and is typically more suited to businesses with sufficient resources to benefit from its features.
If you have any questions regarding small self administered schemes (SSAS) please get in touch with our team of qualified financial advisers for a no obligation chat.
In 2024-2025, the full state pension in the UK is £221.20 per week. However, the amount you receive depends on your National Insurance (NI) record.
Typically, SSASs are set up by private and family-run limited companies for the benefit of the company’s directors and senior employees
SSASs offer a wide range of investment opportunities, including commercial property, loans to the sponsoring employer, shares, and other assets, providing flexibility in managing pension funds.
Yes, a SSAS can borrow funds, typically up to 50% of its net asset value, to facilitate investments such as purchasing commercial property.
SSASs offer advantages like greater investment flexibility, the ability to make loans to the sponsoring employer, and potential tax efficiencies, making them appealing to business owners seeking control over their pension funds.
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