Pensions - SIPP & SSAS

SIPP (SELF-INVESTED PERSONAL PENSION)

WHAT IS A SIPP?

A SIPP, otherwise known as a Self-Invested Personal Pension, is a type of UK government approved personal pension scheme, which allows individuals to make their own investment decisions from a full range of investments, including cash deposits, approved by HM Revenue & Customs (HMRC).

If you already have a pension scheme, such as the Teachers’ Pension Scheme, it will have a Scheme Administrator (who handles the day-to-day running of the pension scheme). They will invest your money on your behalf, with that of the other members of the scheme. As a result it’s not always easy to see or understand what’s happening with your money A SIPP is designed to help you manage your own pension pot.

WHY OPEN A SIPP CASH ACCOUNT?

If you have made the decision to open a SIPP already, you may wish to consider opening a SIPP cash account. With a SIPP cash account you can be more flexible in how your pension savings are invested Many SIPP customers choose to hold cash in their SIPP as they near retirement as it may reduce risk and increase liquidity.

Offering a variety of product options and rates, a Teachers Building Society SIPP cash account is an opportunity to safeguard a portion of your pension and hold the money as cash as opposed to stocks and shares or other investments.

WHO CAN OPEN A SIPP?

A SIPP cash account can be opened by anyone who has a pension and who is able to deposit an opening investment of between £1,000 and £500,000. Please note that should the balance drop below the minimum of £1,000 we reserve the right to close the account.

A SIPP cash account must be opened via your SIPP Scheme Administrator. If you don't already have one, Moneyhelper has a great guide on their website to help you find an advisor. Teachers Building Society is not authorised to provide investment and pension advice.  SIPPs can be complicated products to understand so we suggest you seek independent financial advice before making any decisions.

SMALL SELF-ADMINISTERED SCHEME (SSAS)

WHAT IS A SSAS?

A SSAS, otherwise known as a Small Self-Administered Scheme, is a small occupational pension typically designed for director-level or senior executives of a limited company. However they can be open to all employees and their family members even if they don't work for the employer and are usually limited to 11 members.

WHY OPEN A SSAS ACCOUNT?

The key benefit of opening a SSAS cash account is that it can offer the employer increased flexibility in where the collected funds are invested as part of the SSAS. A SSAS cash deposit account may minimalize risk should scheme members be close to reaching retirement age.

WHO CAN OPEN A ​SSAS?

A SSAS cash account can be opened by a director or whoever else manages the pension administration within the limited company. Each employee is able to deposit an opening investment of between £1,000 and £500,000. Please note that should the balance drop below the minimum of £1,000, we reserve the right to close the account.

Teachers Building Society is not authorised to provide investment and pension advice.  We suggest you seek independent financial advice before making any decisions. Moneyhelper can help you to find an independent financial advisor if you're thinking of opening a SSAS as they can be complicated.