SSASs are a better option in most cases to a SIPP
Despite the fact that the automatic choice for most business owners is a SIPP, a SSAS pension is by far the better option for business owners due to the flexibility of loan backs, and lower admin costs in general so they can keep more money for running their business, as well as more investment opportunities.
New regulation has affected SIPPS which will probably cause SIPP providers to increase their prices and costs to deal with a potential increase in administration – but this doesn’t apply to SSASs and therefore doesn’t affect business owners.
Unique and Flexible
Unlike other pension schemes, a SSAS allows business owners to have access to some of the funds they save, providing the opportunity for loans to their business. A SSAS also puts business owners back in control of their pension.
Plus, any assets that grow in the SSAS are in a completely tax free environment – and the flexibility in how they use the SSAS means they can buy and hold commercial property.
With a SSAS there is no need to be stuck with regular contributions, many business owners wait until the year end to decide whether they are going to make a contribution or not, and if so, how much.
Effective Planning Tool
The flexible features of a SSAS mean that it is not only a hugely advantageous pension scheme, but an extremely effective financial planning tool ahead of your clients’ retirement. The possibilities include reducing tax costs from contributions and commercial property, planning for the release of funds, using annual contribution allowances and reducing Corporation Tax.
Fund for Business Growth
A SSAS can improve cash flow by providing business owners the opportunity to borrow from their own savings, participate in Commercial Property Transactions and invest in a wide range of schemes and products, as well as cutting costs on Corporation and Income Tax. This allows SMEs to fund their own growth.
