In this interview we talk to Gareth Bertram about how pension funds can be unlocked and used to invest in property or fund your business – and also look at some real life case histories of how this works in practice.
Bertram opens: “Many company directors have traditional pensions. However, they are often not fully aware of all the additional benefits that SSAS schemes can offer them.
“Those with SSAS pensions receive all the same benefits a traditional pension offers plus many more. It means they can take control of their pension pots, use the money within them in both hands on and hand off ways, and grow their pension funds too.
“In our opinion a SSAS pension is the only type of pension a company director should have. As well as all the usual tax breaks, contribution limits and investment options a SSAS pension is a smart business tool which allows a director to use the funds in their pension to grow their business as well as growing the pension too.”
Bertram outlines how a SSAS pension scheme is set up in the first place. He explains: “SSAS pensions are established by your company and are low cost and simple to set up and run. They can only be established by directors of limited companies, but there is no lower age limit. They can be set up by just one or two directors, (husband and wife schemes are common), with a maximum of 12. The scheme becomes automatically regulated by The Pensions Regulator (TPR) and a corporate trustee ensures that all the rules are followed.
“The directors, or member trustees as they become known, then transfer funds into the SSAS. This can include funds from former employment or other private pensions. Ongoing contributions can be made by the director as an individual or by their company. Members can pool resources if they wish to.”