Specialist advice on SSAS or SIPP

SSAS

SSASs (Small Self-Administered Pension Schemes) are usually set up to provide the director and/or senior staff with retirement benefits. There are usually a small number of members and each of them has a share of the funds. SSASs give their members considerable control and flexibility over the investment policy and assets, but the main difference is that the pension can loan money to, or invest in the business.

SIPP

A SIPP (Self-Invested Personal Pension) also offers greater control over investments, but this is a personal plan owned by the director rather than an occupational scheme owned by the business. With a SIPP you can invest in stocks and shares (UK and overseas), collective investments (such as OEICs and Unit Trusts) and investment trusts. You can also use pension monies to purchase commercial property, such as the premises you work from – your pension can collect rental income from your business.

SIPPs are not only flexible but also portable, so if you change jobs or even stop working, the pension can move with you.