From control over succession planning to business investment flexibility – SSAS is becoming the self-invested pension of choice for many people.
1. SSAS puts you in the driving seat.
The great thing about SSAS is that all members are scheme trustees. This means you have a greater say in the running of the scheme. On the death of a SSAS member, the decision as to where any death benefits are distributed would be that of the trustees.
2. Help Your Business Grow
One of the main advantages SSAS has over SIPP is in the potential buy shares in the business or to grant a secured loan to your business of up to 50% of the fund value of the SSAS.
3. Flexible Investments
SSAS is not subject to the Financial Conduct Authority’s identification of investments as either a standard asset or a non-standard asset. The cost implication for a SIPP operator allowing non-standard assets is now so prohibitive, many firms will either not permit them to be held, or charge you an increased fee. A SSAS administrator is not subjected to this financial burden.
4. Successful Succession Planning
As well as having input member and a trustee of the SSAS in any death benefit distribution, it can be useful for the SSAS to allow non-member trustees to provide further protection and influence over the decision as to who should benefit.
Since pension freedoms came into force, for family-run companies in particular, a SSAS can be a hugely tax efficient way to protect and pass on your pension money to your future generations, whether or not your partner or children play an active role in the business.
5. Cut Down on Costs
A purchase of a commercial property by a SSAS is one transaction, including one set of legal fees and disbursements. A group of directors using their SIPPs to purchase a commercial property will duplicate the legal fees and disbursements, as each director’s share of the property is purchased separately by their own SIPP.
Since the trustees of a SSAS are at liberty to select their own professional partners and negotiate fees themselves, costs could be kept to a minimum in this area too.