SSAS Pension Drawdown Rules
This is about taking benefits from your SSAS. The earliest that you may draw benefits from your SSAS is currently age 55, which is rising to age 57 from 2028.
When we had the SSAS drawn up, we included as much flexibility as we possibly could.
Yes, you can withdraw up to 25% of your pension scheme's value tax-free. However, this amount is currently set at £1,073,000 and isn't expected to rise.
When you want to draw that tax free cash we can obviously pay you that all at once or in staged payments. Or you don’t have to take it at all. Many of our SSAS clients never make use of the tax-free money because doing so could increase their estate's Inheritance Tax liability, among others. So, consider that point very carefully indeed.
There are no limitations on your ability to withdraw money from the SSAS; all you need to do is save the amount attributed to you within the SSAS. Income Tax is applied to any amount you do receive at your highest marginal rate. Yes, it can use up part of your tax allowance if it is still available, as we pay it under PAYE.
Thus, SSAS offers a great deal of flexibility in terms of allowing you to access benefits whenever you wish to take them.
