SSAS sales grow every quarter thanks to 'pension renaissance'

SSAS sales at Xafinity have risen every quarter this year, the firm reported, with about a typical year’s worth coming in just six months. The company has attributed rising interest to the “pension renaissance” brought about by the retirement reforms and greater consumer awareness.The new SSAS scheme numbers are less than 50 in 2015 so far but Q2 sales were a 67% increase on Q1 and Q3 sales were an 80% increase on Q2.Andy Bowsher, director of Sipps at Xafinity, said: “We have seen a significant increase in SSAS business, and it’s great to see this long respected mainstay of SME pension planning back in vogue again.{desktop}{/desktop}{mobile}{/mobile}“SSAS has seen a renaissance as both consumers and advisers understand its distinct advantages, especially with respect to specific changes made, which impact on IHT planning, which allows complex assets to pass directly onto family members tax-free in the event of death.”A recent Xafinity survey of financial advisers, with interests in retirement planning, which showed that 78% believed that the death benefit changes would increase the use of SSAS.Mr Bowsher said: “Over recent years the growing popularity of Sipp has drawn attention from SSAS but, more recently, and as a direct result of the surge in interest in pensions following the reforms, SSAS appears to be undergoing a renaissance.“One of the main reasons has been a re-familiarisation and education for advisers. The new freedoms plus the ability to pass even relatively complex assets, such as commercial property, directly onto family through the pension scheme, in the event of death, opens a significant space for this product.”He said: “The new SSAS scheme numbers in 2015 are less than 50 in 2015 to date, but the ‘old fashioned’ SSAS should still have a place on the IFA menu of products now and in future especially due to the unique loanback facility and the family SSAS and theme of passing the assets down the generations since the death benefit changes.“As SME’s continue to look for options to finance their growth strategies, the loanback facility from legacy pensions is a useful tool and the concept of clubbing together existing pensions into a SSAS to buy a commercial property for businesses to trade and expand.“Relative to our Sipp products volumes of SSAS are lower. This is in part due to our remaining true to our principles and continuing to refuse unauthorised advisor led sales as we don’t always see these as conducive to client focused outcomes.”He expects growth in SSAS interest to continue over the next 6 to 12 months, partly because of new attractions following death benefit rule reforms.He said: “As more come to understand a business can hold its primary business premises within a SSAS and pass it through family generations unscathed by death taxes so its use will continue to grow.”

SSAS sales grow every quarter thanks to 'pension renaissance'

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