The primary role of a Small Self-Administered Scheme (SSAS) is to provide an income to members when they retire.
These days, retirement can take many forms. Some owners may sell their business and retire immediately, others will work part-time as they plan their succession. A SSAS is flexible and, within HMRC’s rules, members can draw benefits in a way which suits them, even if they are still working.
It’s all about choice and flexibility.
For most people, the earliest age they can take retirement benefits is 55. Although, as we continue to live longer, this minimum age may increase.
Broadly speaking, you can take a tax-free lump sum of up to 25% of the value of your pension.
The balance will then be used to provide you with an income. There are several ways to do this, including buying an Annuity or drawing income directly from the SSAS. The Pension Freedom rules, introduced in 2015, give you more flexibility than ever before. For example, there is now no limit on the amount of income you can draw from your pension. Although, care needs to be taken about taking too much income which could lead to a significant, and occasionally unexpected, tax bill.
As we said, it’s all about choice and flexibility.
If you would like to learn more about how a SSAS can benefit you and your business, please get in touch by completing the form below or calling us on 0800 612 6644.
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