Is a SSAS a New Kind of Pension Scheme?

SSAS is a Defined Contribution Scheme. What you’ve put in is what you get out, plus all of the accrued growth achieved by your investments. It is not dissimilar to a personal pension but offers you full control and many great additional features.

When Was SSAS First Introduced?

Despite being one of the best kept secrets in British finance, SSAS (Small Self-Administered Scheme) pensions have been around since the early 1970s. At the time of their inception, the majority of pensions were large schemes managed by big providers or insurers. 

SSAS Pensions looked to turn the tables on the traditional pension model by offering a pension for small Company Directors looking for a flexible pension scheme they could control.

Initially, SSAS pensions were only opened by Directors of Trading Limited Companies who were keen to grow their wealth in a low-tax environment and save for retirement. Over time, however, SSAS pensions were introduced as an option to be used alongside self-invested personal pensions (SIPPs), which are available for everyone.

Understand the basics of SSAS.

What are the Benefits of SSAS Pensions?

Since SSAS pensions first appeared on the scene, they have provided a great many benefits to their members, including:

Investment Flexibility: SSAS pension schemes can invest in a wide range of opportunities. One of the most tax-advantageous investments within a SSAS pension is commercial property, from shops and offices to pubs, hotels, and medical surgeries (to name a few).

If you’re interested in investing through your SSAS, speak with a member of the team at our sister Company, One Crown investments, who will be happy to provide you with SSAS permissible investments that will help grow your fund.

Tax Efficiency: one of the greatest advantages of SSAS pensions is how tax efficient they are. SSAS is a low-tax environment offering relief from corporation tax and capital gains tax. And it is also not liable to pay inheritance tax until 2027. If you want to see the greatest return on your investments, SSAS offers the best low-tax environment for your wealth to grow.

Wealth Protection: SSAS is one of the best wealth preservation pensions available. Assets held within a SSAS can be passed down to beneficiaries upon a member’s death, with the added benefit of significant tax savings. What’s more, assets held within a SSAS are protected from creditors, so you can have the reassurance that your money’s going to the right people.

Further benefits of SSAS Pensions.

When Were SIPPS Introduced?

Self-Invested Personal Pensions (SIPPS) were first introduced in 1989. Their purpose was to offer a flexible pension solution for individuals who didn’t qualify for a SSAS. You can choose to have both a SIPP and a SSAS, however it isn’t typically very convenient. 

Watch: SIPP vs SSAS - What’s the Difference?

Here at One Crown Pensions, we always recommend that if you’re the Director of a trading Limited Company, that you take the time to explore SSAS and the many ways it could benefit you.

Explore SSAS with One Crown Pensions

Unlock your financial freedom with a SSAS. Book a call to speak with a member of our SSAS Practitioner team and discover how SSAS could help you grow your wealth, expand your business, and support your beneficiaries well after you’re gone.