A Small Self-Administered Scheme, or SSAS, is a type of pension that employers are able to manage for a small number of employees. An SSAS pension is similar to a Self-Invested Personal Pension (SIPP) as it allows some influence over investments.
“SSAS pensions are quite common in small businesses and they give the members of the scheme the opportunity to invest in assets such as gold, if they want to.” Steve Jones, Wealth Management
- How does an SSAS Pension Work?
- SSAS Pension Rules
- Including Gold in Your SSAS Pension
How does an SSAS Pension Work?
SSAS pensions are a type of workplace pension that a company can set up and manage independently. Membership of the scheme is normally limited to 11 individuals and, unlike SIPPs, an SSAS does not have individual pots for members. Instead, each share is assigned a percentage of the overall fund.
Typically, smaller, family-run companies use an SSAS to offer their employees greater retirement benefits and wider investment opportunities. Members of an SSAS pension scheme can choose how their pension funds are invested and have the option to invest in their own company.
The value of an SSAS member’s pension when they retire will depend on how much has been paid in, how long contributions have been invested for and the performance of the investments made. When a member chooses to retire, they can take up to 25% of their accumulated pot as a tax-free lump sum and use the remaining amount to provide an annual income.
SSAS Pension Rules
A company may only open one SSAS pension and its membership is limited to 11 people. Membership is open to employees and their family members, even if they do not directly work for the company. The scheme administrator and its trustees manage these pension scheme accounts. Due to the low membership number, there is greater opportunity for members to have input over investment decisions.
Members of an SSAS pension are able to withdraw money once they turn 55 years old (this will be increasing to 57 years old in 2028). As with all personal and workplace pensions, the first 25% of allocated funds will be free of tax. After the tax-free portion of a fund has been used, the standard income tax rate is applied to future withdrawals.
Including Gold in Your SSAS Pension
As SSAS pension members are able to choose the investments made as part of the scheme, they could decide to invest in gold, a precious metal that has performed strongly over time. With a long history of working with precious metals and buying and selling gold, The Royal Mint offers several ways to invest in gold, including through an SSAS pension.
To include gold in your SSAS pension, request a call back today or email us at financialproducts@royalmint.com
