SIPP v SSAS: What’s the difference and what should you go for? | Personal Finance | Finance
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There isn’t a vast amount of difference between a SSAS and a SIPP scheme as they are largely governed by the same rules and laws; where they do differ is on how the law are applied to them.
On SIPPs and SSAS, Claire Trott, divisional director of Retirement and Holistic Planning at St. James’s Place, said: “Care should be taken to always ensure that the most suitable pension scheme is used.
The upfront costs of a SIPP are usually smaller than an SSAS, but as the costs of the latter are diffused among a larger group, they become cheaper over time than a SIPP.
However, a SIPP offers the individual running it complete control over investment decisions, not a joint decisions among trustees.
Among other factors, a decision weighing up the benefits of greater flexibility versus greater individual control will have to be made.
Royal London, a pension provider said: “A SSAS has more flexibility than a SIPP when it comes to investment.
“This is because current legislation allows investments to be made in the sponsoring employer. A SIPP doesn’t have a sponsoring employer, although any employer can contribute to it, but a SSAS does.
Ms Trott said: “There is no point in the complexity or cost associated with certain schemes if there is no need for them.
“For instance, if you are only investing in a collection of funds then a bespoke SIPP or SSAS aren’t the best vehicle.
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