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What is a SSAS Pension?
What is a SSAS, small self-administered schemes explained
Small Self Administered Scheme is a type of UK Occupational Pension Scheme. Schemes are trust-based and established individually, usually by directors of limited companies for specified employees of the company.
Small self-administered pension schemes (SSAS) are generally set up to allow a small number of senior staff in a company to build up a pot of money.
Membership is generally limited to no more than 11 members. These are often company directors or senior executives. However, they can be open to other workers and even family members.
SSAS are a specialised type of employer sponsored defined contribution pension scheme.
The value of a member’s entitlement from a SSAS when they retire depends on:
- the amount of money that’s been paid in on behalf of that member
- the length of time that each contribution has been invested
- investment growth over this period and the level of charges (if applicable).
When they retire, members will usually be able to take up to 25% of their pot as a tax-free lump sum. The rest will be used to provide an income. There are other options though, that we talk about below.
Insurance companies and other pension providers offer SSASs.
A SSAS is run by its Trustees, who would usually also be the members of the scheme.
SSAS contributions are made by the members and/or the employer.
Contributions by individual members qualify for tax relief. Whereas contributions made by the employer might be deductible against profits, subject to certain conditions.
SSASs will normally accept transfers from other pensions if you want to bring your pensions together.
You can also usually transfer the value of your SSAS to another pension.