Small Self Administered Pension Schemes

The Pensions Act, 1990 brought together and set down clearly the duties and responsibilities of pension scheme Trustees. There is a high degree of overlap between trustees duties under the general principles of trust law and their duties as prescribed in the Act.

The Irish retirement regime is one of the most liberal and innovative in the world. Coupled with that is the fact that that over 90% of all businesses in Ireland are small or medium sized enterprises, run by entrepreneurs.

For the corporate entrepreneur a Small Self-Administered Pension (SSAP) should be the number one choice for retirement planning. An SSAP is established under trust by a company’s directors. They are the ‘members’ and ‘trustees’ of the pension scheme.

An SSAP provides a tax-efficient environment in which a company’s profits can be invested to provide retirement benefits for directors. As the fund grows it can work for the member and still be free from creditors should the company go into liquidation.

An SSAP gives company directors the opportunity to maximise their pension funds prior to retirement by giving them control over their investments. Unlike other pension schemes the directors can control and choose their investments and the range of investment options are extensive and include things like: structured deposits, direct investment in stocks and shares, properties etc

As a result of the Finance Act 2004 the trustees of single member SSAPs can now borrow money in order to invest.

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