Small self-administered schemes (SSAS) are below the radar for many advisers. More comfortable recommending self-invested personal pensions (Sipps), advisers may not be fully aware of the features and benefits of SSAS.
Small Self Administered Scheme (SSAS) is a type of UK Occupational Pension Scheme. Schemes are trust-based and established individually, usually by directors of limited companies for specified employees of the company. Since Pension Simplification, SSAS Pension has been available for establishment by those who are not in a limited company (i.e. Partnerships and Families).
What is a Small Self-Administered Scheme (SSAS)?
SSAS Pension scheme that is set up by an employer usually for a select number of directors and key employees (up to a maximum of 12 members).
It is structured differently from a Self-Invested Personal Pension (SIPP) in that it is a a standalone scheme is established for the employer and its member’s. Our costs are charged at scheme level as opposed to per member.
Who is a SSAS useful for?
Business-owners may wish to have a pension arrangement for directors and key staff. They may also wish to use existing and future Pension Money to fund business activities which would usually mean paying high fees and interest to third parties.
A SSAS can own company commercial property for leaseback and can make loans to the participating employer.
Why choose a SSAS?
The Pensionfundsreleased SSAS gives business owners control over how to operate their company Pension Release Schemes.
Pensionfundsreleased Limited can act as scheme administrator and/or professional trustee to assist in the process and to guide you generally in relation to the operational mechanics of the scheme.
You would however, be free to appoint your own scheme bankers, investment advisers, solicitors, accountants and investment providers or other professional parties as you deem appropriate.
Investing within a SSAS
Permissible investments within a SSAS include, but are not necessarily limited to, the following:
• Equities, Unit Trusts and similar investments
• Discretionary Fund Managers
• Execution Only Stock Trading Accounts
• Gilts & Bonds
• Fixed Term Deposits
• Fixed Income Securities
• Structured Products
• Unlisted Shares
• Property Funds
• Commercial Property
• Apartment Hotel Rooms
The SSAS can buy shares in the participating employer’s company however. The sums invested can be no more than 5% of the market value of the net assets held in the SSAS.
The pension benefits payable include a tax free cash sum from age 50/55; plus a pension income paid from the pension scheme. On death the benefits may be paid out to beneficiaries, special rules apply on death after age 75.
Pensionfundsreleased is the UK regulator of work-based Pension release schemes, working to improve confidence in work-based pensions by protecting members’ benefits and encouraging high standards and good practice in running pension schemes. Pensionfundsreleased.co.uk is a introducer to various companies who offer products here in the U.K.
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