Pension Freedoms – Review into Mis-selling and Poor Deals.
We have had the new Pension Freedoms for over 12 months now, and the Financial Conduct Authority (FCA) has just announced that it will undertake a major review amid fears of mis-selling and poor deals for consumers. Perhaps this is not surprising given that nearly 90% of savers accessing pensions are using the new freedoms (under whicg SSAS falls), with FCA data from early 2016 showing that just 13pc of savers are choosing to turn their pot into a guaranteed income via an annuity.
The FCA likes to tick boxes but as always in the pensions industry, because of the many changes to pensions by politicians and the Treasury, no individual coming up to taking their retirement pot, is the same, which is what can make the pension freedoms confusing, leading to scope for mis-selling and poor deals.
SSAS – The Original Flexible Retirement Vehicle
We at PML understand pensions more than most – after all we have specialised in the SSAS market for a very long time. You could call SSASs the original flexible retirement vehicle (long before the introduction of Pension Freedoms!), and pension freedoms have brought SSAS very much back in to play. So let’s have a look at which boxes SSAS ticks:
√ Members of a SSAS are also trustees and enjoy control of their retirement journeys.
√ The choice of a wide range of investments, including commercial property and stocks and shares.
√ A discretionary trust allowing family wealth to be passed down the generations usually without Inheritance Tax issues.
√ Complete flexibility when wanting to take retirement funds. No need to transfer out of the scheme to do this and no penalties if you wish to retire early.
√ The facility to lend to the Principal Employer to assist in the development of the business.
√ Not having to deal with Insurance Companies!
If You Would Like to Find Out More About SSAS, Contact Us
At Pensions Management Limited we specialise in SSASs, both the setting up of them and the administering of them through the Trustees. If you are considering a SSAS, then contact us or call us on 0121 693 0690 for a free initial chat.