The SSAS Special 6: 6 ways a SSAS can grow a business
Pensions may be the last thing on a business owner’s mind, but investing in a SSAS now could not only mean a financial reward in the future, but also help with growing a business right here in the present.
Don’t underestimate the power of a pension; here’s 6 special reasons why a SSAS is the most beneficial scheme for businesses with 11 directors or less…
- Tax Benefits
The structure of a SSAS means you can save tax at almost every opportunity; not only do you reduce the amount of Corporation and Income Tax on the contributions you make into your pension, but also on any repayments you make back into your fund after borrowing from it. You also receive your savings in a tax-free Pension Commencement Lump Sum upon retirement, and any investments you make within your SSAS will also be able to grow in a tax-free environment.
With the new death tax rules, a SSAS is the perfect estate-planning tool. You can grow your fund secure in the knowledge that if your loved ones also become members of the scheme, they will have full benefit of your assets without any inheritance tax penalties whatsoever.
Because a SSAS is based on a Trust and you and your fellow directors are the Trustees, you have more control over how you use your savings than with any other pension scheme on the market. Whether you decide to take a loan from your fund, use it to invest or leave it to gain compound interest – the decision is completely yours, and we are available to help guide you along the way.
Implementing a SSAS not only provides the most fertile environment for investment growth, but it is an extremely versatile pension scheme and financial planning tool to encourage business growth. A SSAS is the only scheme that allows you to take out a business loan to help with cashflow issues. In addition, you can obtain funding for and purchase Commercial Property, giving you the tools and flexibility to create growth for your business and your pension fund.
There is a chance to put your savings to good use with almost every pension scheme, but a SSAS is unique in that it provides more investment opportunities than any other on the market. These include loans, equities, gilts, shares, managed funds and structured products, and the tax savings you make on your investments mean they can considerably increase the final amount in your retirement pot.
A SSAS works as a trust, meaning that whatever contributions you and any of your fellow directors make, you know they are safe; this is also reassuring in that any assets in the scheme are safe from creditors if your business hits a hurdle in the future. Not only is the scheme itself incredibly secure, but putting it in place provides a safety net for your future too; a SSAS means that you can live out the retirement you’ve dreamed of and worked so hard for.
There’s no ‘one size fits all’ approach with a SSAS; we’ve developed a wide range of uses, tools, add-ons and one off extras that mean whatever your business, whatever your requirements, we can design a bespoke SSAS to suit you. This doesn’t only apply to your initial scheme either; throughout the duration of your SSAS, we can provide advice to help you adapt your pension as your business grows.
With the raft of changes to pension legislation, pensions in general (and SSASs in particular) now offer a compelling range of benefits. So much so, that if you have a profitable business and you do not have a SSAS, you are definitely missing out!
Now is the time to create your pension scheme, don’t rely on the government or your business to provide you with a retirement fund when there is a unique and beneficial SSAS pension scheme available to you. Call us on 0845 862 2869 to find out what a SSAS could do for you.