Can You Transfer Existing Pensions into a SSAS?
This is a question we are frequently asked because most people opening a SSAS have at least one pension scheme elsewhere.
The good news is that, yes, you can transfer other pension schemes into a SSAS. Here’s how it works and what you can expect.
Which Pension Schemes Can You Transfer into a SSAS?
You can transfer most UK pension schemes into a SSAS, as long as the pension scheme is registered with HMRC and the receiving scheme will accept the transfer. Examples of transferable pension schemes in the UK include:
- Personal pensions
- Stakeholder pensions
- Workplace pensions
Pensions Schemes You Cannot Transfer into SSAS
There are some UK pensions schemes that you cannot transfer into SSAS, such as:
- Defined Benefit Schemes with the NHS
- Government-based pensions
Unfortunately, it is not simple to move those pension schemes into a SSAS. However, if you hold one of these pension schemes, please do speak to us as we can sometimes obtain a letter of authority from you and write to your existing pension provider to get a better understanding of the existing schemes you hold.
How Long Do Pension Transfers Take?
Transfers take anywhere up to 3-4 months to complete. This is because there are stringent checks that help to protect your pension during the transfer process.
Always Seek Independent Financial Advice Before Transferring Your Pension
If you decide to transfer your pension scheme to a SSAS, we recommend that you seek independent financial advice before doing so.
Why Transfer Your Existing Pension Scheme into a SSAS?
SSAS is one of the best kept secrets in British finance and once you discover its many benefits you’ll wonder why you didn’t know about it before. If you’re considering transferring your pension into a SSAS, here are just a few of the benefits you can expect:
Convenience: When you have multiple pension schemes, managed by different providers, you likely have lots of different accounts and logins to keep track of. Transferring your existing pension schemes into a SSAS is convenient. It allows you to consolidate all of your pensions in one place and helps you manage your money more easily.
Investment Flexibility: SSAS offers more investment flexibility than most other pension schemes. It provides an abundance of investment opportunities, including the ability to invest in commercial property and land. Our sister Company, One Crown Investments, can discuss SSAS permissible investments with you if this is something you would like to explore.
Loan Back to the Company: A SSAS can make loans to the sponsoring employer, under certain circumstances and in adherence to the regulations. This can provide much-needed funding and is a significant benefit for Directors of trading Limited Companies seeking financial support to grow and develop their business.
Low-Tax Environment: SSAS lets you save for retirement in a low-tax environment. Assets held inside a SSAS are corporation tax deductible and free from capital gains tax. Transferring your existing pensions into a SSAS is a great way to be more tax efficient and help your money go further.
Pension Control: SSAS is a Member Directed pension scheme. This means that the Member Trustees are responsible for the investments held inside the SSAS. In our experience, more Directors want control over their pensions and how their money is invested. SSAS provides just that and it’s one of the reasons why so many people are choosing to transfer their existing pensions into a SSAS.
Explore our SSAS Video Hub to learn more about SSAS and its many benefits.
Who Should Consider a SSAS?
If you don’t already know, SSAS stands for Small Self-Administered Scheme. It is a defined contribution pension scheme ideal for Directors of small to medium sized Limited Companies and their beneficiaries.
If you are the Director of a Limited Company and you are keen to grow your business, build a legacy, invest widely, and have ultimate control over your pension fund, a SSAS could be the solution you’ve been looking for.
Transfer Your Pension to a SSAS with One Crown Pensions
To discuss transferring your existing pensions into a SSAS, book a call to speak with a member of the One Crown Pensions SSAS Provider team. We can facilitate the transfer for you and ensure everything goes smoothly.
