A Small Self-Administered Scheme (SSAS) might not be the most well-known type of pension, but for business owners, it’s a financial game-changer. If you’re looking for flexibility, control, and a way to grow your wealth in a tax-efficient manner, a SSAS could be the perfect solution.
Understanding SSAS
- What is a SSAS?
A SSAS is a type of occupational pension scheme that’s specifically designed for directors of small and medium-sized businesses. Unlike other pension schemes, SSAS allows members to take control of their investments, making it an ideal choice for those who want to actively manage their retirement funds. - How does SSAS work?
Typically, SSAS is established by a company and its directors. Up to 11 members can join, and it’s common for family members to be included. The scheme offers the flexibility to invest in a wide range of assets, including commercial property, shares, and even loans to
your own business.
The Benefits of SSAS
- Tax Advantages
SSAS comes with significant tax benefits. Contributions to the scheme are tax-deductible, and the assets within the SSAS grow free from capital gains tax. Upon retirement, members can take 25% of their pension pot as a tax-free lump sum. - Investment Flexibility
With a SSAS, you’re not limited to traditional investments. You can diversify into property, lend money to your business, or even invest in private equity. This flexibility allows you to align your pension investments with your broader business strategy. - Control Over Your Pension
Unlike other pension schemes where a third party manages your investments, SSAS puts you in the driver’s seat. This level of control is ideal for entrepreneurs who are used to making their own financial decisions.
Is SSAS Right for You?
- Who Should Consider a SSAS?
SSAS is particularly beneficial for business owners who want to use their pension to support their business activities. It’s also ideal for those who want to include family members in their pension scheme. - Potential Drawbacks
While SSAS offers a lot of flexibility, it also requires a higher level of involvement and understanding. If you’re not comfortable managing your investments, a SSAS might not be the best choice.
Take Control of Your Financial Future
If you’re a business owner looking for a pension scheme that offers flexibility, control, and the potential to grow your wealth, SSAS could be the solution. At Retirement Capital, we specialise in helping business owners like you navigate the complexities of SSAS and make the most of its benefits.
What Next?
Ready to explore if a SSAS is right for you? Claim your FREE 1:1 call with our experts today and start taking control of your financial future. Click Here to Get Your Free SSAS Growth Plan
Interested in how SSAS compares with other pension options? Check out our blog on SSAS vs. SIPPs.
