The primary benefit to a SSAPS is the control the scheme allows you over your own retirement plan. It is a less common approach as it only appeals to employees in specific situations.
Retirement plans can be so broad and varied that oftentimes, you may be unsure as to where your pension investment is going. A SSAPS opens a lot of those doors – you have the benefit of sitting down with an advisor and deciding on a structure that fits your specific needs.
One route that many are generally tempted by is buying property with your pension. Property is considered one of the most stable pension structures and, again, is one that you can wrap your head around.
It is important to bear in mind that a SSAPS is usually more viable for someone in a high-paying position who values autonomy in their retirement planning. Some of the primary benefits associated with this structure are:
More control and flexibility over the movement of your money and the investments made with your pension funds.
Tax-efficiency – tax credits will apply to the highest rate of tax on any personal contributions you make to the scheme. Corporation tax relief also applies to company contributions.
A transparency exists on all costs associated with the scheme.
A SSAPS is portable, meaning you can continue to access it even if you change your line of employment.
The investment is not subject to income tax or capital gains tax.
You can exercise control over the format in which you will eventually receive your pension funds, be that via a partial lump sum or in scheduled instalments.
The scheme is confidential, and its terms cannot be accessed by colleagues or other members of the company.
If you pass away prior to claiming the sum in your scheme, your dependants will be provided for with the remainder of your funds.
A SSAPS functions as an ideal vehicle for moving your assets into a pension structure.