What is a SSAS or SSAP Pension ? (Small Self Administered Pension/Scheme)
Small Self Administered Scheme – This is a tax-efficient company pension plan. It differs from traditional pension plans provided by insurance companies as it is self-administered, which allows you to control your contributions and investments. A SSAS allows you to personally manage your assets, rather than simply investing in a pension policy with an insurance company. It offers you greater control and flexibility in your investment choices and is tailored to the meet your investment needs and objectives.
A pension is a form of long-term savings to build a fund which will generate a source of income for you at retirement. Pensions are generally considered one of the most tax efficient forms of savings.
Who should set up a SSAS Pension ?
A SSAS is best suited to company directors, executives or professionals who wish to be set apart from the main company pension scheme on grounds of greater confidentiality, control and flexibility.
A SSAS may be established wherever an employer-employee relationship exists and the employee is in receipt of taxable income from that employment.
What are the benefits of a SSAS Pension?
- Control over Investments – A SSAS allows members to choose where your pension fund is invested.
- Transparency – A member of a SSAS scheme is fully aware of exactly what assets their pension is invested in.
- Reduced Charges- A SSAS structure is often more cost-effective than traditional pension schemes.
- Confidentiality- For senior employees who would otherwise be members of Corporate Schemes, a SSAS offers a greater level of confidentiality.
What can I invest a SSAS Pension in?
Our pension arrangements are highly flexible in terms of the choice of investment structure.
- Property (geared and ungeared)
- Personalised Equity Portfolios
- Corporate and Government Bonds
- International Funds
- Private Equity
What are Tax Benefits of a SSAS Pension?
- Contributions – tax is saved at the marginal rate on any contributions made to the SSAS.
- Rental Income, Dividends, Deposit Interest and CGT – all operate within tax free within the pension.
- Reduced Costs of Investments – investments are purchased gross of tax.
- You may retire from age 50.
- Your SSAS is flexible and can change to suit your circumstances e.g. it can be transferred with you if you move employer
- Tax Free Lump Sum – 25%* can be taken as a tax free lump sum when you retire.
- Approved Retirement Fund (ARF) – 75%* can then be used to purchase an Income from this fund is only taxed as drawn down.
*Revenue rules apply
What happens to SSAS Pension in Death?
The value of your SSAS fund at the time of your death is used to provide benefits to your dependants.
Can I transfer my existing pension?
If you have an existing pension, you may transfer your fund to a SSAS. This is a very straightforward process and HFS can look after this on your behalf.
How much can I contribute to a SSAS?
Your ability to contribute to a SSAS depends on key factors such as age, salary, years of service etc. The maximum amount permissible by Revenue is set at €2 million in total retirement benefits, calculated on an actuarial basis.
What are the associated costs of setting up a SSAS Scheme?
The cost structure of a SSAS pension is completely transparent and is often more cost-effective than traditional pension schemes
- Set up Fee
- On-going Administration
A SSAS structure is often more cost-effective than traditional pension schemes