What is a SSAS Pension and is it right for you?

A Small Self-Administered Scheme (SSAS) is a type of occupational pension scheme, typically set up by limited companies for the benefit of directors, senior staff, and their families. It’s designed to offer greater choice, control and flexibility over how retirement savings are invested and managed.

Unlike a traditional workplace or personal pension, a SSAS is created by the company itself and usually run by its own members, who act as trustees.

You can have up to 11 members in a SSAS, and they’re often all directors or family members involved in the business. This structure makes SSAS especially attractive for family-run or closely held companies that want to align pension planning with business strategy.

A SSAS is both a pension and a trust. The members (usually company directors) also act as trustees, meaning you have direct control over how the scheme is managed and how your money is invested.

The SSAS can receive contributions from the employer and individual members in the business. These contributions benefit from tax relief and can then be invested in a wide range of asset classes, far broader than with most personal pensions.

This could include:

• Commercial property (including the business’s own premises)
• Loans to the sponsoring company
• Equities, bonds, and other listed investments

All investment returns are sheltered from income and capital gains tax, and the assets remain inside the scheme until members begin drawing retirement benefits.

While SSAS pensions offer impressive flexibility, they’re not a one-size-fits-all solution.

They tend to suit:

• Owner-managed or family-run businesses
• Companies with stable profits looking to make larger pension contributions
• Directors seeking more investment control than traditional pension options allow
• Business owners wanting to involve family members in long-term wealth planning

They can be particularly useful where:

• You want to buy your business premises through your pension
• You’d benefit from loaning money from your pension back into the business
• You’re thinking about succession planning and want to involve your family in the pension structure

If you’re already familiar with SIPPs (Self-Invested Personal Pensions), you might be wondering what sets a SSAS apart.

Here are a few key differences:

A SSAS offers more collaborative decision-making and direct links to your business, but it also comes with greater regulatory responsibility.

The benefits of a SSAS pension for business owners can be significant:

• Greater control over investments
  You and your fellow trustees decide where you invest your money and how it’s managed. This can include investing in the business itself, to support growth.
• Tax efficiency
  Employer contributions reduce corporation tax liabilities, and all investment growth is free from capital gains and income tax.
• Inheritance planning
  SSAS pensions can support long-term intergenerational wealth planning, helping pass value to family members in a tax-efficient way.
• Business funding
  The SSAS can loan up to 50% of its value back to the sponsoring business, providing capital for growth while keeping funds within your business and retirement planning structure.
• Property ownership
  Buy and hold commercial property in the pension, leasing it back to your company and turning rent into pension income.

For more on this, see The Benefits of SSAS Pensions for Business Owners

SSAS pensions aren’t suitable for everyone. Here are a few things to consider:

• Complexity: They’re governed by strict HMRC rules. Failing to meet those obligations could lead to penalties.
• Trustee responsibilities: As a trustee, you’ll be responsible for scheme governance, compliance, and decision-making.
• Setup and running costs: There are administrative and professional fees, especially if you’re using features like loan-backs or property purchases.

That said, many business owners find the benefits far outweigh the added complexity, especially with professional advice and support.

Setting up a SSAS involves several steps, and it’s important to get it right from the outset:

1. Register the scheme with HMRC
2. Appoint trustees and members
3. Create a governing trust deed and rules
4. Set up a bank account for the scheme
5. Submit necessary documentation to HMRC and The Pensions Regulator
6. Appoint an administrator to manage compliance and reporting

Because of the technical and regulatory requirements, most companies work with an experienced pension administrator or financial planner to manage the setup and ongoing governance.

Setting up a SSAS is one thing. Making sure it works for you, your business, and your future – that’s another.

A good financial planner will help you:

• Evaluate whether a SSAS is the best option for your business
• Help you structure contributions and investments tax-efficiently
• Guide you through the loan-back process or property purchase
• Explain the reporting and compliance requirements in plain terms, while working alongside your accountant to ensure you meet all HMRC obligations
• Build a plan that aligns with your broader retirement and succession goals

A SSAS pension isn’t for everyone, but for the right business owner, it can provide an exceptional level of control, flexibility, and tax efficiency.

If you’re looking to align your business success with long-term personal wealth, involve your family in succession planning, or simply take greater control over your pension, then a SSAS could be worth serious consideration.