If you’re planning for retirement in the UK and looking into private pensions, you’ve likely come across two key terms: SIPP and SSAS. Both offer control, flexibility, and tax benefits, but they serve different purposes depending on whether you’re saving as an individual or a small business owner.
Shat is a SIPP?
A SIPP — or Self-Invested Personal Pension — is a personal pension plan that gives individuals the freedom to choose where their pension money is invested. It’s one of the most flexible pension options for individuals who want to be more hands-on with their retirement planning.
Key features of a SIPP:
- You have control over your investments: choose from stocks, ETFs, funds, and even commercial property.
- SIPPs are open to anyone — employed, self-employed, or not working.
- You receive tax relief on your contributions (subject to annual limits).
- Managed by pension providers like AJ Bell, Hargreaves Lansdown, or Interactive Investor.
- Ideal for individuals who are confident making investment decisions.
💡 Check out our article on boosting your pension savings before retiring
What is a SSAS?
A SSAS — or Small Self-Administered Scheme — is a type of occupational pension usually set up by company directors for themselves and a small group of employees. It’s a popular choice for family-run businesses.
Key features of a ssas:
- Created by a business and often limited to 11 or fewer members.
- Members act as trustees and share control over the scheme.
- Can invest in a wider range of assets — including lending funds back to the business.
- Allows commercial property investment, including business premises.
- Offers the same tax relief benefits as other pensions.
💡 You might also be interested in our guide to pension transfers
SIPP vs SSAS: side-by-side comparison
| Feature | SIPP | SSAS |
|---|---|---|
| Who can open it? | Any individual | Company directors/business owners |
| Need a business to set up? | No | Yes |
| Investment control | High — you manage your investments | Very high — all members act as trustees |
| Can lend to a business? | No | Yes (with restrictions) |
| Property investment | Yes | Yes |
| Number of members | One | Up to 11 |
| Best suited for | Individual investors | Family businesses or small company directors |
Which pension is right for you?
If you’re saving independently and want flexibility over your pension pot, a SIPP offers a simple and efficient route. It’s great for people who like to manage their own investments and want to diversify beyond a traditional pension fund.
A SSAS, on the other hand, is designed for small businesses. It provides additional features like lending to your own business and group control, making it attractive for company directors with long-term goals.
Always consider seeking advice from a regulated financial advisor, especially for SSAS pensions, which involve more administrative responsibilities.
Both SIPP and SSAS pensions are powerful tools for retirement planning in the UK. Your choice depends on your personal circumstances — whether you’re going solo or running a business. Understanding these options gives you more confidence and control over your financial future.
