Why Would I Recommend a SSAS Pension Over a SIPP?
We know clients want control over their investments and long term financial planning and we believe SSAS is the solution.
What is a SSAS Pension?
SSAS (Small, Self-Administered Pension) is a pension scheme designed for Directors of Limited Companies. It offers a virtually tax-free environment in which wealth can be invested and cascaded down to future generations.
What is a SIPP?
SIPP (Self-Invested Personal Pension) is a pension that allows you to save up and invest funds for your retirement. However, it doesn’t offer as many investment opportunities as SSAS and there is also not as much opportunity to cascade wealth down to your beneficiaries.
SIPP is a pension plan for the individual and while this might seem beneficial to begin with, it certainly has its drawbacks post death. If you hold a SIPP, your pension has to be wound up after you die, whereas a SSAS pension allows your clients to plan for their death, ensuring their wealth is cascaded down to their beneficiaries.
Watch our video: What Happens to SSAS When Someone Dies?
Why is SSAS The Pension Scheme for Directors?
One of the great advantages that we find with SSAS is that it provides Directors and Entrepreneurs more control over their pension plan. We know clients want control over their investments and long term financial planning. SSAS offers that and it can become a wealth generation planning tool going forward.
SSAS Pension Benefits
We find that SSAS, particularly for clients buying commercial property, works better than SIPP does. These are just a few of the SSAS pension benefits that our clients love:
- You can add multiple Members
- You can pool funds from other pension schemes
- You have the advantage of creditor protection
- There is no income tax or capital gains tax
- SSAS can make loans back to the sponsoring employer, providing they meet the criteria set out by HMRC
Discover more benefits of SSAS.
Open a SSAS Today
We believe that one of the greatest advantages of SSAS is that clients see it as a way of bringing their pension schemes together in one place. As we often say, if you’ve got a SSAS, you don’t need any other pension scheme. You can do everything inside SSAS.
Learn more about SSAS in our SSAS Video Hub or get in touch with a member of our team to discuss opening your very own SSAS pension. We would love to discuss this option with you. Book a call today.
