Small Self-Administered pension Scheme (SSAS)

Some people prefer to manage their own pension scheme rather than leave it to the so called professionals known as fund managers .

Some companies administer their own pension funds. This can be time consuming but it can also make a lot of financial sense. If you're running a business and considering setting up a SSAS, get expert help from a specialist.

There are IFAs and actuaries who specialise in this area but be warned, many IFAs would not know where to start in setting up such a scheme. Once you've found your specialist, be prepared to pay fees - good advice in this area is crucial.

"Small" usually means fewer than 12 members. The trustees control how the pension funds are invested. Subject to certain restrictions, part of the funds may be invested in your company's shares or property.

This means the pension fund may operate as a source of finance for the business. Many small private companies operate such schemes.

For individuals looking to self invest in pensions, vehicles called SIPPs exist.

See Also: Pensions & Retirement Centre Pensions Glossary

Last Updated: April 2008 © Moneyextra.com

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