In this article, I’ll explain what to look for in a SSAS Pension Provider. The right partner will act as rocket fuel for your wealth creation journey. I also provide details of the SSAS Provider that I work with.
SSAS Pensions are amazing. You can use SSAS to buy property, lend money to your business and even become the bank. However, you must choose the right SSAS Provider.
Your SSAS Provider will act as a professional trustee. They’ll ensure that your SSAS pension follows the rules around compliance, reporting and assets it owns. The right provider will work hand in hand, for your wealth creation journey.
Choosing the wrong trustee could turn into a nightmare. SSAS Pensions are a niche product. Historically, some providers have overcharged customers and provided a poor service. Many providers charge extra fees to do virtually anything. Think £3,000 of ‘advice fees’ to do a loan back or extra fees to transfer funds to your SSAS. You really don’t need to accept this, and better options are available.
In this article, I’ll cover what to expect from a professional trustee. I’m lucky to work with an excellent trustee. If you want to find out more, then contact me. Email me or call me on +44 7930 322 555.
Please note that I’m not a qualified accountant or Independent Financial Advisor. I’m providing information, based on my experience as an investor, business owner and SSAS trustee. Any financial decision you make is your own, and you must take independent financial advise.
The number one problem with SSAS Administrators is overcharging. When they see you, they don’t see a person, they just see a big dollar sign. They view your pension pot as ripe for the picking. For this reason, I recommend to choose an administrator with flat fees! I spoke to over 15 SSAS providers before choosing one. The level of overcharging was unbelievable.
Fees to transfer your existing pension to your SSAS
Thousands of pounds in ‘advice fees’ to buy a commercial property
Thousands of pounds in fees to do a loan back
These fees are in addition to the standard management charge. So how can they get away with this? The fees are paid from your pension funds, so people don’t feel the pain. Also, many people don’t realise that there are better alternatives.
I strongly recommend to choose a SSAS administrator that charges flat fees. This way, you have complete transparency over what you’ve been charged. There’s no justification to charge large fees for a loan back or to buy a commercial property.
You’ve worked hard to build up your pension pot. Don’t give it away in fees!
SSAS Pensions are very flexible. There’s only a small list of things you can’t do – such as residential property. However, just because SSAS is flexible, doesn’t mean that your professional trustee is. They might prevent your SSAS from investing in crypto or foreign property, even though the law lets you do it. They prevent you from doing complex investments, as they don’t want to do the extra work.
This is one of my biggest frustrations with SSAS Providers. It’s completely unacceptable. As pension holders, we’ve worked our entire life to build up our pot and set up a SSAS. Then you have lazy trustees that take high fees, and stop us from doing what we want!
Make sure you speak to your provider at the outset and explain exactly what you want to do. You want to work with an administrator that’s flexible. If the law allows you to do something and you want to do it, then the job of your administrator is to make it happen.
It’s obvious that you want a competent administrator. But unfortunately, not all administrators are competent. A good administrator will ensure that your SSAS doesn’t break any rules. If your SSAS owns disallowed investments, then you’ll be fined by HMRC. If an administrator says you can invest in residential property, then put down the phone ASAP! You definitely cannot!
Make sure you do your due diligence on your SSAS administrator. Speak to existing clients. Check online reviews. Speak to many different companies. If an administrator refuses to answer your questions, then I suggest to run a mile. It’s their job to make you comfortable! If you don’t feel comfortable, then don’t take the risk.
There are unfortunate cases of people choosing a bad SSAS trustee. One such trustee was Hartley Pensions. There are many horror stories from their clients. When their clients wanted to leave, Hartley would ignore requests and continue to take fees.
As of the 11th of July, those who have a SIPP or SSAS pension scheme with Hartley Pensions will no longer be able to contribute towards it. The FCA has imposed strict transfer rules on them due to ‘serious operational and regulatory issues’. Wish you had never transferred? pic.twitter.com/Kep1FkKkei— The Byrne Practice (@TBPLaw) July 13, 2022
For my SSAS pension, I work with an excellent administrator. I spoke to over 15 companies, before choosing one. I spoke to the whole spectrum of administrators. From the competent to the incompetent. But truth be told, most of them were a rip off!
I’m very happy with my SSAS provider. I view myself as fortunate to have found them. If you want to find out more, then contact me. Email me or call me on +44 7930 322 555.
- They charge flat fees
- No extra fees to transfer existing pension funds in
- They’re flexible. If I want to do something, they’ll find a way to get it done – as long as it's legal
- They’re a mid-sized firm, rather than national company. I get to deal with the same people each time
- They view me as a person, rather than an account number!
I also have access to large pool of other SSAS trustees. It’s great for me to learn from them and make new connections.
The below video explains further. Why are SSAS Pensions are so powerful, compared to ordinary pensions.
SSAS Pensions are a powerful tool for wealth creation. I view myself as fortunate to have a SSAS. But with great power comes great responsibility! You need to work with a competent administrator, that will ensure all the rules are followed. Also make sure that they charge fair fees and don’t view you as a cash cow!
The benefits of SSAS Pensions are truly extraordinary. I’ve written separate articles that detail the different SSAS strategies you can use.