Is it time to revisit your pension strategy?

Wealth Management: Charles Stanley

One pension structure where this change becomes particularly interesting is the Small Self-Administered Scheme (SSAS). Many business owners established SSAS arrangements years ago, often for flexibility, business property ownership or lending back to the sponsoring company. However, some may not be aware of the retirement income options available within these schemes. 

As well as the more familiar drawdown route, a SSAS can provide the option of a scheme pension – an income paid for life from the scheme. This distinction may become increasingly relevant following the 2027 changes. While unused pension funds may be brought into the scope of IHT, a scheme pension converts pension assets into a lifetime income stream, rather than leaving them as unused pension funds. For some directors, this could help reduce the value ultimately exposed to IHT, making it an area worth discussing with professional advisers. Suitability and outcomes will depend on individual circumstances. 

The key point is not that the rules governing SSAS pensions have changed. They have not. Rather, the changing IHT landscape means existing arrangements may deserve a fresh review. A pension does not exist in isolation; it forms part of a wider balance sheet that may include family businesses, property and investments. This requires careful consideration, and suitability will depend on circumstances, tax position and intergenerational wealth planning opportunities.

Collaboration can help

The best outcomes are often achieved when business owners, financial planners, investment managers and SSAS administrators work together. At Charles Stanley, we work alongside these professionals to help clients navigate such scenarios. Additionally, we help clients make sense of an increasingly complex world.

While fundamentals still matter, capital flows, government policy, central bank actions and shifting global dynamics all play an increasingly important role in asset prices and investment outcomes. We also recognise that every client is different and can work with existing holdings and accommodate individual investment preferences. 

The opportunity presented by some SSAS arrangements is just one example of how informed advice can uncover options that may be overlooked. If you have a SSAS in place, it may be worth asking a simple question: have I fully explored the retirement and estate planning options available to me? 

Sometimes valuable insights come not from new ideas, but from the implications of change for options that have been there all along. 

The value of investments, and any income derived from them, can fall as well as rise. Investors may get back less than originally invested. Charles Stanley is a trading name of Raymond James Wealth Management Limited, which is authorised and regulated by the Financial Conduct Authority and is part of the Raymond James Financial, Inc. group of companies.