If you’re a business owner looking for a smarter way to invest for retirement — and maybe grow your property portfolio along the way — the SSAS Pension Scheme might just be the most powerful financial tool you’ve never heard of.
SSAS (Small Self-Administered Scheme) pensions are tailor-made for directors of limited companies who want more control over how their pension money is used. And if you’re someone who likes the idea of putting your pension to work for your business, rather than just locking it away in stocks and funds, SSAS could be exactly what you need.
What Makes SSAS So Different?
Most pensions are pretty hands-off — you throw in money every month, and your provider puts it into whatever mix of funds they offer. You don’t really have a say, and there’s no flexibility if you’ve got ideas of your own.
A SSAS flips that model on its head. It’s a pension, yes — but one where you (and your fellow company directors, if there are any) act as the trustees. You get to decide where the money goes, and that includes some interesting options you won’t find in a standard pension: things like commercial property, loans to your own company, and even private company shares.
It’s this level of control that makes the SSAS Pension such a standout choice for people running their own businesses.
Buying Property Through Your Pension
One of the biggest attractions of a SSAS is the ability to buy commercial property — like an office, warehouse, or industrial unit — using your pension money. Here’s where it gets clever: your business can rent the property from the SSAS, at a fair market rate, with the rent going back into your pension — and it’s completely tax-free.
So, instead of paying rent to a landlord, your company is essentially paying rent to your own pension pot. You’re helping your business and your future self at the same time. That’s good planning by anyone’s standards.
(Just remember: it’s commercial property only. Residential property is off-limits for SSAS and comes with hefty tax penalties.)
The Tax Side of Things
SSAS contributions are tax-deductible for the company, meaning lower corporation tax bills. The growth in the fund is tax-free. And when you hit retirement age, you can usually take out 25% tax-free, with the rest coming out as income (taxed, but at your likely lower retirement rate).
It also works well as an estate planning tool — in many cases, SSAS funds can be passed on tax-free to beneficiaries.
Is SSAS Right for Everyone?
Not necessarily. SSAS pensions involve more paperwork and responsibility than a regular pension. You’ll probably need professional advice and a good administrator to keep everything compliant.
But if you’re a business owner with big plans — especially if you’re investing in property or want to keep your pension working within your business — the SSAS Scheme is hard to beat.
