Pension Practitioner
The SSAS Experts
18
NOV
2015

Why should you choose SSAS over SIPP? Advice from the trusted experts.

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SSAS pension

I

f you are a director of a limited company or small business – you’re missing out on a pension that could be working for you now, not just after retirement.

As the SSAS experts, we are the best resource to de-mystify the benefits of choosing a SSAS pension instead of the more common SIPP.

Firstly, what is SSAS? Don’t let the jargon fool you, all this stands for is a Small Self Administered Scheme. It really is that simple. ‘Small’ because of the size of the company, ‘Self Administered’ because the directors of the company become the trustees of the account. So, how can you benefit?

Make your pension scheme work for you.

SSAS pension

Unlike a SIPP (Self Invested Personal Pension) with a SSAS, you can lend money from the pension to a connected business. This not only generates a good return for the pension, it creates a sustainable low-cost source of borrowing to your company.

SSAS tax reliefNot only this, but if the borrowed funds are used wholly for business purposes, you can benefit from a double tax relief! Up to half the value of the fund may be loaned back to the business in this way, making it ideal for any expansion plans you may have.

Company Director SSAS

The very nature of a SSAS means that as a Self Administered Scheme, you have the freedom to invest in appropriate assets that a more traditional SIPP could deem too risky. Whereas a SIPP is owned by the pension provider, with SSAS, the company directors who set up the scheme are also the trustees.

SSAS pension benefits

You can take advice on how best to run the scheme, but the power is in your hands.

SSAS influence

Combined with the increased purchasing power associated with pooling pension funds of multiple directors, this marks SSAS as a flexible, powerful pension that can bring great investment rewards.

SSAS pension investment

A SSAS is separately registered with HMRC, not only does this allow ring fencing of company assets, it enables the trustees to make appropriate investment decisions. Trustees of a SSAS can invest in commercial property, with the business paying the rent back into the pension to be reinvested. Why would you choose a pension scheme that is restrictive with few rewards, when SASS are as flexible as any market competitor?

SSAS pension advice

The benefits and freedoms of SSAS mark it out as the clear choice for small business owners, but if you have any further questions, feel free to get in touch with our team at Pension Practitioner for impartial, reliable advice from the SSAS experts!

Call David on 0800 634 4862

Or email davidn@pensionpractitioner.com for enquiries 

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