Should your family business consider a SSAS?

atawnyco Pensions

A SSAS is a Small Self-administered pension Scheme which typically doesn’t allow more than 11 members and must be supported by a Ltd company. Due to the small nature of the scheme, it lends itself well to small or medium sized companies that are typically family run. One of the reasons a SSAS may be suitable for such companies is that although most of the members and trustees are often directors and executives, they can also be family members who are not necessarily employed.

Some of the other details regarding the SSAS include:

  • They are defined contribution schemes
  • Often run by trustees who are often the members of the scheme
  • Both the members and the employer can contribute towards the SSAS
  • Contributions benefit from tax relief
  • Contributions are pooled together and can be used to develop the company
  • SSAS can be used to purchase company property
  • Flexibility of where the contributions are invested
  • SSAS enables funds to be invested in company shares

Currently, you can begin to claim from the SSAS when you are 55 and are able to do so using many of the traditional methods associated with other pensions including taking a regular income or a tax free lump sum and an income.

Your entitlements at retirement are also dependent on a range of factors including your contributions to the SSAS and the growth of the funds. Some providers are now also enabling you to pass down your share of the assets to younger generations keeping the company in the family. This is a tax efficient way to pass on your share upon your death.

If you think that this is a suitable product for you and your business, or would like to learn more about this and other pension options, please do not hesitate to contact one of our advisers at Aaron Tawny. We will cover the costs of our first meeting with yourselves to discuss your needs and suitability of this or any other pension option that you would like to discuss. Contact us for more information.

To find out more about SSAS and how they can be used in your business, please visit