SSAS as a financial planning tool: a scheme that’s more than just a pension

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SSAS as a financial planning tool: a scheme that’s more than just a pension

It’s easy to think of a pension as something you don’t need yet, as something you’ll only need in the distant future, and as something that can only help you during your retirement.

A SSAS pension is different; the unique qualities of a SSAS (Small Self-Administered Scheme) mean that it can be used a financial planning tool which can not only ensure the security of you and your loved ones upon your retirement, but can also help to expand your business in the meantime.

One extremely common barrier to business growth is the issue of cash flow; getting paid promptly for what you do, having money in the bank and being able to put that money to good use is vital for your company to be able to progress to the next level and putting a SSAS pension in place can help.

Here are just a few examples of how a SSAS can be used as an effective financial planning tool:

  • You can transfer existing pensions into your SSAS saving you money on fees, enabling you invest the funds to achieve better growth which you can then use in a variety of ways:
  • If you are experiencing cashflow issues, you can take a business loan from your SSAS. Using a SSAS in this way has even helped to prevent businesses from going under!
  • You can use your SSAS to receive funding for and purchase Commercial Property. Purchasing property is a huge step for a business to take and often not an option due to monetary challenges, but having a SSAS means the opportunity for your company to own property is more readily available than ever
  • A SSAS offers more investment opportunities than any other pension on the market. From equities and gilts to shares and structured products, you can put your savings to good use and invest in something that helps increase your overall fund thanks to the compound interest you receive, and the ability of the fund to grow in a tax-free environment
  • Other ways to use your SSAS for planning purposes include the release of your funds, the use of annual contribution allowances and even through a little known feature of a SSAS called a ‘general allocated fund’, which enables contributions of up to £500,000 in a single year

At SSASCo, we are dedicated to getting to know our clients and what they need from a pension scheme. We can provide advice and support on the best way for them to maximise the financial planning benefits that a SSAS can offer.

To find out more about SSASs and how they could help you grow your business, call us on 0845 862 2869 to talk to our team of business pension specialists.

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