For a startup to create a successful business model and meet the demands of customers in their sector, it requires sufficient and consistent funding. There are many ways for business owners to raise money for their company, but one that many people may not have considered is a pension fund, or, more specifically, a SSAS (small self-administered scheme) pension.
Small businesses and startups are an ever-present and fundamental part of the modern business world. While there is the potential for long-term success, no company can expect to enjoy such results without a decent amount of capital and an efficient financial plan moving forward.
In this article, we discuss the benefits of a SSAS pensions and why it’s an ideal solution for business owners in need of more control and flexibility when it comes to their company’s finances.
What Is a SSAS Pension?
A SSAS is an occupational pension scheme that is usually set up by company directors, or startup founders in this case. This grants them more control over investment decisions relating to their pensions, which is especially beneficial if they plan to use the pension fund to invest in their business. Once a SSAS is set up, each member becomes a trustee, which is a requirement under the Pensions Act 1995.
The key features of a SSAS pension are as follows:
- Members are usually employees or fellow directors/founders of the sponsoring employer
- All members have a share of the funds, which includes insured assets like Trustee Investment Plans, as well as non-insured assets such as property
- There is a limit of 12 members.
The Benefits of a SSAS Pension
While many business owners will fund their company with conventional financial options such as savings, loans or even crowdfunding, unique and creative solutions such as pension plans often go unnoticed. Take a SSAS pension for example — not only is it the perfect way to introduce a more flexible and controlled approach to investments, but you also have the option to lend money from pension funds you have contributed to in the past to your company.
The latter is especially crucial for startups and small businesses that require a sudden injection of cash for large company expenses, or if you are in the market for commercial property and require additional funds to cover the cost. In an era when innovation and creative thinking is more important than ever, being able to apply a more entrepreneurial approach to your business finances could prove to be vital for maintaining a modern company.
Another aspect to consider about pensions — or any other bespoke financial service, for that matter — is how advantageous the support and advice you receive from financial experts are for both short and long-term business success. The specific guidance you receive relating to pensions is extremely beneficial for financial security and creating additional forms of income during your retirement years.
The Landlord’s Pension specialises in SSAS and SIPP pensions, and has helped thousands of company owners Use pension funding to invest in their company or the purchase of property.