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Clifford Osborne Limited is Financial Conduct Authority Authorised and Regulated to give investment advice that is unbiased, comprehensive and in a client's best interest.
Small Self-Administered Scheme SSAS explained
A Small Self-Administered Scheme (SSAS pension) is a registered occupational pension scheme which provides business owners with a highly flexible and tax efficient means of saving for retirement. As Trustees of the scheme, members retain a high degree of control over the use and investment of its funds. To arrange a free initial discussion at your home, workplace or our offices contact us today.
It can receive contributions from the member, the sponsoring employer or a participating employer and can accept transfers from other pension arrangements.
Included in a wide range of investment options is the ability to provide a loan back to the sponsoring employer, to own shares in the sponsoring or participating employer, (within certain limits) and to buy property occupied or to be occupied by the employer.
The SSAS also offers the highest degree of flexibility in how and when retirement benefits may be drawn. The members, together with the pension trustees are the trustees of the scheme. With a much greater range of options than standard pension plans, a SSAS provides trustees ultimate control over all aspects of the investment strategy of the scheme and the payment of any benefits.
A SSAS also offers self-investment opportunities including:
- The ability to make a secured loan to the sponsoring employer,
- The ability to purchase commercial property from, and to lease back to, the sponsoring employer
There are two basic methods of adding to your pension plan: transfer from previous arrangements and new lump sum and /or regular contributions. You may hold more than one pension plan, therefore it is also possible to transfer the funds/assets from an existing pension arrangement into a SSAS.
You may transfer from:
- Stakeholder Pension Plan
- Personal Pension Plan
- Executive Pension Plan
- Retirement Annuity Contract
- Free Standing Additional Contributions Plan
- Buy-Out Contract (Section 32 Plan)
- Final Salary Scheme
Read more about Pension Transfers and your options above and below 55 years of age.
The member trustees may use their SSAS funds to inject cash into their business by making a secured loan to the employer (Loan back). Loans are restricted to a maximum of 50% of the net scheme assets and have to be repaid by regular capital and interest instalments. Such loans must be secured against assets by way of a first charge and the security must be sufficient to cover the loan and interest on it.
The maximum term permitted is five years and the interest rate must be at least 1% above the average base lending rate of the leading high street banks. Loans may be made to third parties but not to member trustees or anyone connected to them.
Independent financial advice should always be sought before you proceed with the transfer of any previously accrued benefits/funds.
The value of your investments is not guaranteed and you may not get back the full amount invested.
Our IFA’s are based in East Sussex and often serve clients across Bexhill, Hastings, Lewes, Seaford, Newhaven, Crowborough, Uckfield, Tunbridge Wells, Brighton and Hove
We are not tied to any financial institution and therefore offer you truly independent advice. A free, initial no obligation review meeting can take place at our offices in Eastbourne East Sussex, at your workplace or in the comfort of your home.
If you are considering taking independent financial advice we would love to talk to you. Call us without obligation or complete the enquiry form and we’ll contact you as soon as we can.
We are happy to serve clients with any level of wealth.
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