Like all pension schemes, Small Self-Administered Schemes (SSAS) have running costs although they are very different to standard pension schemes in that their charges are fixed and transparent rather than variable and implicit within the product.
How Much Does a Small Self-Administered Scheme Cost?
How Much Does a Small Self-Administered Scheme Cost?
Here is a quick example
| Pension Fund Value (£) | Personal Pension Annual Fee (1.9% p.a.) | SSAS Expert Annual Fee (£) |
| £100,000 | £1,900 | £1,895 |
| £250,000 | £4,750 | £1,895 |
What this means is that in most pension arrangements, the annual running cost increases in line with the value of the fund and the SSAS becomes better value as the fee represents a smaller percentage of the fund. However, this is not the case with smaller pension fund values which means that a SSAS may not be suitable. This is where a careful cost-benefit analysis is important.
In addition to the running costs of a pension scheme, there are also initial establishment fees to set-up the arrangements:
| Pension Fund Value (£) | Personal Pension Annual Fee (6%) | SSAS Expert Establishment Fee (£) |
| £100,000 | £6,000 | £1,895 |
| £250,000 | £15,000 | £1,895 |
While the main fees incurred are establishment and annual fees, there can also be fees for specific one-off transactions such as when purchasing a property or making a loan to a business. For example, the fee for making a loan to a business is £500.
Further details are available in our Fee Schedule.