SSAS pensions: small self-administered schemes explained

A small self-administered pension scheme (SSAS) is an option if you run a limited company or partnership. These schemes usually allow up to 11 people to join. 

You need to be a company director to set up a SSAS, usually with the help of a regulated financial adviser. You can then decide who can join, including other employees and family members.  

SSAS members are also typically its trustees, which means they’re jointly responsible for running it. This often includes deciding where the pension money is invested, as the choice of investments is normally much wider than other schemes. 

A SSAS is a type of defined contribution pension. This means the amount it will pay you when you’re older depends on: 

• how much is paid in 
• how the invested money performs 
• the charges you’ll pay 
• how and when you choose to take the money.  

The company will usually make regular or occasional payments into the SSAS pension pot over time. They can also deduct these contributions against their profits to save money on tax (subject to certain conditions).  

Employees can choose to put money into the SSAS, but don't have to. Money in existing pensions can also be moved across, provided the SSAS accepts transfers. 

Depending on how the SSAS is set up, members will either own an individual pot or be entitled to a percentage of the whole pot.  

If members leave the company before retirement, money can usually be left in the SSAS or transferred to a different pension scheme. Find out more in our guide about transferring your defined contribution pension. 

The earliest you can usually access your pension is age 55 (57 after April 2028), but many people keep the money invested until they’re older and need it. 

When you want to take money from a SSAS, you could: 

• Take up to 25% as a tax-free lump sum and either: 
  • take the rest as and when you need it as flexible income (drawdown)  
  • convert the rest into a guaranteed income (an annuity) or 
  • set up a ‘scheme pension’ with the rest, which is like an annuity paid by the scheme, not an insurance company. 
• Take all the money as one or more lump sums (the first 25% is usually tax-free). 

The SSAS scheme rules will set out which options are available to members. 

For more information, see our guide about your Options for using your defined contribution pension pot.

If you’re aged 50 or over, you can also have a free Pension Wise appointment to understand all your options to take your SSAS pension. 

The main benefit of a SSAS over other types of pension scheme is the range of investment options available to the trustees.  

This might include the ability to use some of the money held in your SSAS to: 

• buy your business property, so your rental payments go back to your SSAS (the scheme can also borrow money to fund the purchase with a mortgage) 
• buy your company shares, so you can use the money to run your business 
• lend money to your business. 

Remember, like any investments, future growth is never guaranteed. So, there’s always a risk you could get back less than you pay into your pension.

If you’re considering a SSAS, it’s a good idea to speak to a regulated financial adviser so you can understand if it’s the right option for you and your business. 

They can also help you find a suitable SSAS provider. These are often insurance companies and pension providers.   

To find a SSAS provider on your own, you can search the AMPS directoryOpens in a new window (Association of Member-Directed Pension Schemes) for ‘SSAS administrators’ and ‘SSAS professional trustees’. 

You’ll also usually need to register: 

• the SSAS scheme with HMRCOpens in a new window and 
• the SSAS trustees with The Pensions Regulator (TPR)Opens in a new window

There are many fake investment opportunities designed to steal your pension money. They often do this by promising very high returns or using branding from real companies.  

As SSAS pensions are not regulated by the Financial Conduct Authority (FCA), scammers will often use them to access scam investments.  

Never join a scheme if you don’t have any relationship to the employer, or you feel under any pressure to do so. Scammers might try to encourage you to set up an employment link so you’re able to join – this is fraud.