Small Self-Administered Schemes (SSAS)

What is a Small Self-Administered Scheme (SSAS)?

They are a defined-contribution (money purchase) company pension scheme. They were originally designed for smaller companies to allow greater flexibility for a company wanting to provide pensions to senior executives.

Small self-administered schemes were once very popular for directors of companies who could pull together their pension investments to purchase the company trading premises as part of their pension arrangement. As it is now possible to do this within a Self-Invested Personal Pension, these plans have become less popular. They are also more complicated to set-up and are often very complicated to administer at retirement.

Limited to 12 members

Small self-administered schemes are normally limited to 12 members who are often the directors and senior executives of the company. When members retire, the pot must be split to earmark benefits to pay for the retiring member’s pension. This is where things can get complicated and why SIPPs have become the preferred option for most companies looking at senior executive pensions.

The importance of seeking professional advice

Eastcote Wealth Management has years’ experience in this area and can help you to access the pension options available to you and help you to maximise your pension on retirement. Please be careful with your hard-earned pension savings and think very carefully before cashing them in or moving them. If you’re offered a scheme which seems too-good-to-be-true, it probably is. For further information, see www.pensionsadvisoryservice.org.uk/pension-problems/making-a-complaint/common-concerns/pension-scams.

Please do not hesitate to contact us if you would like to discuss your retirement options in more detail. Remember, we offer a free no obligation consultation and will be happy to help if we can. We take a holistic and long-term approach to wealth management, opting to build a lasting relationship with you and provide a tailored solution for all of your investments.

A pension is a long-term investment. The fund value may fluctuate and can down. Your eventual income may depend upon the size of the fund at retirement, future interest rates and tax legislation. Occupational pension schemes are regulated by the pensions regulator.