A Small Self-Administered Scheme (SSAS) is a type of pension scheme that is set up by an employer usually for a select number of directors. It differs from a Self-Invested Personal Pension (SIPP) in that it is a separate scheme for the employer and our costs are charged per scheme rather than per member.

Who is it for?

You may be particularly interested in a SSAS if you are a business-owner and wish to use existing and/or future pension monies to interact with your business or simply wish to have a pension arrangement that is not tied down to one provider. Your SSAS would be able to own your company premises for leaseback or lend monies to your company so that you pay loan interest to your own pension rather than to your bank.

Why would you want one?

A SSAS gives you complete control over who you select to provide services to your pension scheme. We would take care of the scheme administration and due to the nature of SSASs we would act as a professional trustee to assist in the process and to guide you generally in relation to the scheme. You would be free to choose your own scheme bankers, investment advisers, solicitors, accountants and investment providers as you see fit.

What it costs

There is a one-off fee for providing the documentation to set up a SSAS and after that a regular fee for acting as a trustee and administrator and to cover any other pieces of work that arise – such as retirement planning, provision of loan documentation etc.

A wide range of investments

One key reason why a SSAS are so popular is that they offer a wide range of investments that may be selected by the pension holder or their adviser.

Lending your pension money to your company

Uniquely, funds in SSASs can be loaned to the sponsoring employer provided certain criteria are met and loans to do not exceed 50% of fund value. If this is of interest to you, we would be pleased to discuss further.

What is a SIPP?

A Self-Invested Personal Pension (SIPP) is a UK personal pension scheme allowing the investor greater personal control over the type of investment held. The type of asset class that might be included in an SIPP depends upon it being ‘allowable’ by HMRC, although in practice many SIPP operators apply their own restrictions to acceptable investments. Once in the SIPP the investor is able to build up significant sums in a highly tax efficient manner to provide for their retirement.
 
Contributions to a SIPP follow the same rules as any personal pension with tax relief on the contribution and tax free growth within the pension. The difference lies in where the investment might be made and the degree of flexibility when taking the pension.
 
An SIPP allows you the freedom to choose where contributions are invested following the HM Revenue & Customs Guidance Notes. HM Revenues & Customs regulate investments that are held by Registered Pension Funds through the above mentioned SIPP guidelines ( a list illustrating just some of the typical investment choices is below).
 
  • Stock Exchange listed Companies
  • Unquoted shares
  • Unit trusts and Open Ended Investment Companies (OEICs)
  • Government Securities
  • Commercial Property – e.g. hotel rooms
  • Land – e.g. woodlands and forests
  • Hedge Funds
 
An SIPP gives you control, however, it also means that subsequently the risks can affect you directly, for example, the pension that you receive once you retire will depend on two factors; firstly, on how much contribution was made and secondly how the chosen investment performed. Another variable to be considered is annuity rates which can affect your pension depending where they lie at the time of purchase. SIPPs are frequently used as consolidation vehicles for people who have acquired a number of paid-up pensions throughout their working life and see SIPPs as being an ideal vehicle to bring them all under one roof.
 
A SIPP is not always suitable for every investor and professional financial advice should be sought A Save & Prosper Company Limited work with a number of such advisers and would be happy to assist with any enquiry.
Contact Info
  • Contact Save & Prosper Company Limited today for impartial, confidential and expert advice from our panel of leading experts who specialize in the field of Trust Planning.
  • Address:131 Crosslands Stantonbury Milton Keynes MK14 6DE
  • Phone:01908 590 347
  • Mobile: 07973283398
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