What is a SSAS

A Small Self Administered Scheme (SSAS) is a type of defined contribution pension scheme that an employer can self-manage for less than 12 members. Let’s delve into the details:

Purpose and Setup:
A SSAS pension is typically established by directors of limited companies to gain more control over how their pensions are invested.
It allows employers to independently manage the pension scheme without involving financial institutions or insurance companies.
SSAS pensions are commonly used by small or family-run businesses.
Membership is capped at 11 individuals per SSAS pension scheme.
The scheme can include employees and their family members, even if they don’t work directly for the company.
Investment Flexibility:
SSAS members have the freedom to choose how their pension savings are invested.
Unlike other pension schemes, SSAS pensions can be used to invest in the company itself.
Rules and Features:
SSAS pensions can invest in various assets, including commercial property.
The scheme can offer commercial loans, allowing it to lend money to the company for asset purchases.
SSAS pensions can borrow money (e.g., via a mortgage) for investment purposes.
Contributions made by members and employers are eligible for tax relief.
Basic rate taxpayers receive a 25% tax top-up on contributions.
Higher-rate taxpayers can reclaim additional tax relief through their tax return.
Cashing In:
Members can start drawing benefits from their SSAS pension from age 55 (increasing to 57 from 2028).
The first 25% of the pension pot can be taken as a tax-free lump sum.
Subsequent withdrawals are subject to income tax.
Benefits depend on contributions, investment duration, and performance.
In summary, SSAS pensions offer greater control, investment flexibility, and tax benefits for employers and their members. If you have an SSAS pension, consider exploring options to consolidate your pensions online1.

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