SSAS Technical Information
Advantages of a SSAS
There are a number of aims of a SSAS including:
- A means of saving for your retirement in a tax-efficient way within a pooled asset environment
- Being able to choose from a wide range of investment opportunities, to build up your pension fund
- Being able to make your own investment decisions, and choose investment managers
- To provide a lump sum when benefits commence, and a choice of flexible incomes thereafter, including drawing income from the fund without buying an annuity
- Lump sums and/or pensions for your beneficiaries on your death
- Taking benefits when you choose, and the ability to draw benefits in stages
- Being able to transfer benefits from other UK registered pension schemes other existing pension funds into the SSAS
SIPP and SSAS - What's the difference?
One of the key differences between a SIPP and SSAS is that a SSAS is an employer-sponsored scheme, whereas the SIPP is open to the self-employed. Once a SSAS is set up and registered with HMRC, additional scheme members can be added to the Trust. Any new members added only need to be employed by the sponsoring employer if the company plans to make employer contributions to the SSAS on their behalf.
Another way that a SSAS is different to a SIPP is that the provider of the SSAS is not integral to the structure and operation of the pension. An under performing SSAS provider can simply be removed and replaced by a new provider. Where a SSAS owns a commercial property and the member trustees elect to change their professional trustee, they will need to appoint a solicitor to deal with the legal transfer of the property to the new scheme.
For more information on the differences between SIPP and SSAS, Head of Sales Charlie Dewey answers the key questions of what a SSAS is, how a SSAS compares to a SIPP and what investment opportunities are available in a SSAS in Professional Paraplanner.
| SIPP | SSAS | |
|---|---|---|
| Personal or Occupational? | Personal | Occupational |
| Number of members permissable | No limit | Maximum 11 members |
| Member has trustee duties? | No | Yes |
| Individual registration of the scheme | No | Yes |
| Commercial property investment | Yes | Yes |
| Loanback to sponsoring employer | No | Yes |
| Discretionary fund management | Yes | Yes |
| Pooled investment | No | Yes |
| Drawdown | Yes | Yes |
| Uncrystallised Funds Pension Lump Sum (UFPLS) | Yes | Yes |
| Regulation | The Financial Conduct Authority (FCA) | The Pensions Regulator (TPR) |
SSAS loan backs
A SSAS can make a loan to connected and unconnected parties but not to an individual person. Loans must not be made, either directly or indirectly, to scheme members or their relatives or other connected parties.
SSAS loans must meet certain criteria. Contact us today to learn more about the process for lending money from a SSAS.