Small Self-Administered Scheme (SSAS)

As a member of the SSAS pension, you may start withdrawing from the fund at 55 years of age (though this increases to 57 in 2028). You can choose to either take the first 25% of your pot as a tax-free lump sum or receive 25% of each withdrawal tax-free.

The annual allowance of SSAS contributions is 100% of each scheme member’s salary (with a maximum of £60,000).  

If you die before the age of 75, any remaining pension savings in your SSAS can usually be paid as a lump sum, or as a pension, to your beneficiaries. Contributions made to the SSAS two years prior to your death may be liable for Inheritance Tax (IHT). This is to reduce the estate of the given SSAS member. 

The answer is different for everyone. Though it is important to remember that setting up an SSAS will depend on HMRC gathering information on the SSAS itself and the sponsoring company. 

If the scheme is registered with HMRC, you can transfer between any UK pension. This includes transferring a SIPP into a SSAS and a SSAS into a SIPP. 

• Scheme membership can be limited to a maximum number of individuals.  
• Members are responsible for meeting legal obligations (in their role as trustees). 
• Contributions to a SSAS count towards your annual pension contribution allowance.
• Trustees have the responsibility of reporting to HMRC ad arranging tax relief. It is possible, however, to appoint an administrator to help.

Always speak with a Financial Planner before setting up a SSAS.

There are several key differences between the two, including but not limited to: 

• A SSAS is a workplace or occupational pension, while a SIPP is a personal pension. 
• A SIPP is open to anyone, a SSAS is only available to senior executives and their families (usually at a maximum of 11 members). 
• A SSAS can lend to the sponsoring business, while a SIPP cannot. 
• SSAS has investment flexibility, while a SIPP has some restrictions on investments. 

It usually works both ways. SSASs will usually accept a transfer from another pension. And you can usually transfer the value of your SSAS to another pension, too.

When using a SSAS pension, you are likely to come across the following costs: 

• Scheme set up cost. 
• Annual fee.  
• Property purchase. 

Depends what SSAS provider you use – some will charge an upfront and ongoing fee, while others may take a different approach. Therefore, the provider you choose and the fees you pay will be dependent on the complexity of your case. 

Generally, setting up a SSAS pension looks like:

• 1. Deciding each member of the SSAS.
• 2. Identity verification (anti-money laundering procedures).
• 3. Transferring existing pensions to the scheme.
• 4. Choosing a pension administrator and professional trustee.
• 5. Register with HMRC.
• 6. Get a Pension Scheme Tax Reference (PSTR) number from HMRC.
• 7. Register with the Pensions Regulator.

The best way to set up a SSAS pension is with the support of a Financial Planner.