Glossary · UK

What is SSAS (Small Self-Administered Scheme)?

An employer-sponsored occupational pension scheme run by company directors, offering wide investment powers including loans back to the business.

Full Definition

A Small Self-Administered Scheme (SSAS) is an occupational, defined-contribution pension set up by a limited company, usually for its directors and senior staff, with a maximum of 11 members. The members are typically also the scheme trustees, giving them direct control over how the fund is invested. A SSAS offers broad investment flexibility, including commercial property, and can make a loan back to the sponsoring employer (a loanback) subject to strict HMRC conditions on security, interest and term. Contributions receive normal pension tax relief and count against the standard Annual Allowance of GBP 60,000 (or the GBP 10,000 Money Purchase Annual Allowance once flexibly accessed). SSAS schemes are popular with owner-managed businesses that want to use pension savings to support their company while building retirement provision in a tax-efficient wrapper. They demand careful administration, professional advice and adherence to trustee duties, so are generally not suitable for the casual saver.