Comparison Β· 2026/27
SSAS vs Standard Workplace Pension
A Small Self-Administered Scheme (SSAS) gives company directors direct control over pension investments, including buying commercial property or lending to the business β a standard workplace pension offers none of this but is far simpler for most employees. This guide compares both.
At a Glance
| Feature | SSAS | Standard Workplace Pension |
|---|---|---|
| Typical members | Directors/family, small numbers | All eligible employees |
| Investment control | Full β trustees decide | Limited β curated fund range |
| Can buy commercial property? | Yes, incl. company premises | No |
| Can loan to sponsoring employer? | Yes, within HMRC limits | No |
| Running costs | Higher β bespoke admin/trustee fees | Lower β standard provider charges |
| Annual Allowance | Β£60,000 (2026/27) | Β£60,000 (2026/27) |
Annual Allowance figure applies to both scheme types for 2026/27. SSAS loan-back and property rules are subject to detailed HMRC conditions β confirm on gov.uk.
How a SSAS Works
A SSAS is set up as an occupational pension scheme, usually by a small number of connected directors who act as trustees with full control over investment decisions. Pooled scheme funds can be used to purchase commercial property β often the company\'s own trading premises, leased back at a market rent β and, within strict HMRC limits, to make a loan back to the sponsoring employer.
This flexibility comes with greater responsibility: trustees must ensure the scheme complies with pension and trust law, commission regular valuations, and typically pay for professional trustee or administration support, making running costs higher than a standard workplace pension.
How a Standard Workplace Pension Works
A standard workplace pension β set up by an employer, often to meet auto-enrolment duties β gives each employee their own individual pension pot, invested in a curated range of funds chosen by the provider or employer. Employees typically have limited say over individual asset purchases, but benefit from professional fund management and lower, more predictable charges.
It remains the appropriate and far simpler option for the vast majority of employees, who do not need or want the trustee responsibilities and bespoke investment powers that come with a SSAS, which is designed specifically for company directors seeking direct control.