Changes in death benefits will lead to many more people turning to the small self-administered scheme, Xafinity’s director of self-invested pensions Andy Bowsher has claimed.
Since April, people have been able to pass their unused defined contribution pension to any nominated beneficiary when they die rather than paying a 55 per cent tax charge.
Mr Bowsher said: “Pension freedoms and, vitally, the relaxation of the taxation of death benefits, have positioned the already resurgent Ssas as the ultimate inter-generational family tax planning vehicle.
“Holding commercial property within a Ssas has now become more favourable as the property, within the Ssas wrapper, can be passed on to any nominated beneficiaries on death without needing to sell it by way of beneficiary’s flexi-access drawdown.”
Earlier this year a survey of advisers revealed that 78 per cent of them thought the changes to death benefits would increase the opportunity for using Ssas.
Adviser view
Gordon Slocombe, a chartered financial planner with West Sussex-based Metis Wealth, said: “I think pensions generally can now be used as a family trust if they are not needed for other purposes.”
