Retirement benefits

A SSAS can provide members with flexibility in how and when they access their pension savings, subject to the applicable legislation and scheme rules.

From 6 April 2028, the normal minimum pension age will increase from 55 to 57. Some members may have a protected pension age that allows them to access benefits earlier, subject to the relevant conditions.

Depending on their circumstances, members may be able to take a tax-free lump sum within the available limits and use the remaining funds to provide retirement income. Options can include:

• Flexi-Access Drawdown – taking income from pension funds while the remaining funds stay invested.

• Annuities – using pension funds to purchase a guaranteed income.

• Eligible lump sums – taking benefits as a lump sum where the relevant conditions are met.

The options available, the amount of tax-free cash and the tax payable on benefits will depend on individual circumstances and the applicable rules.

Highstone can explain the administrative process and work with members and their professional advisers as they consider their retirement options.

Death benefits

A SSAS can provide benefits for a member's beneficiaries following their death. The scheme's trustees normally have discretion over who receives these benefits, in accordance with the trust deed and rules.

The tax treatment of death benefits depends on factors including the member's age at death, the type of benefit paid, the timing of payment and the beneficiary's circumstances.

From 6 April 2027, most unused pension funds and pension death benefits will fall within the scope of inheritance tax. The precise treatment will depend on the applicable rules and any relevant exceptions.

This makes it particularly important to consider pension death benefits as part of wider estate planning. Highstone can provide information about the scheme and its administration to support discussions with members' professional advisers.