How to significantly boost your pension using DB SSAS

Member News

ARE YOU A business owner or a business executive asks Tony Byrne, managing director of Wealth & Tax Management. Do you have an underfunded pension? Would you like to pay a lot more into your pension and could your business or your employer afford much larger contributions?

The Chancellor’s decision to increase the Annual Allowance for pension contributions to £60,000 a year at the last Budget was very welcome but that still leaves some people with underfunded pensions for a variety of reasons.

One little known way to overcome this disadvantage is to set up a type of pension scheme known as a Defined Benefit Small Self Administered Scheme or DB SSAS for short. Because the funding rules are totally different to a money purchase or Defined Contribution Scheme, this means that annual contributions can be increased by on average 2.6 times. This equates to £156,000 a year per member. That is a substantial uplift, especially for a married couple who can invest £312,000 p.a. between them.

A SSAS is a type of pension scheme which is particularly suited to SME business owners and key staff members. It offers a number of attractive benefits including self-investment in commercial property and shares and even loans to the business itself.

A business may have multiple SSAS contracts for individual staff members but it is more usual to have one scheme which all of the members join. The members are usually appointed trustees too so they have much more control over the management of the SSAS than for most other pension schemes such as Self Invested Personal Pensions or SIPPs.

If you are interested in ways to significantly boost your pension contact Wealth and Tax Management on 01908 523740 or email

RISK WARNING The Financial Conduct Authority does not regulate tax planning. The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount invested. The tax implications of advice will be based on your individual circumstances, tax legislation and case law as well as regulations which are subject to change. You should always seek tax advice from a taxation specialist in order to understand your options. This article is based on my own observations and opinions. 

Tony Byrne

Chartered and Certified Financial Planner

Managing Director of Wealth and Tax Management