But fees are not the be all and end all. One of the most important aspects of a SSAS is what it offers. The Table shows whether companies offer the following; independent trustees, scheme administration, in-house actuarial services, retirement planning advice, investment advice and general consultancy.
As has been noted before, no two SSAS providers are the same, and the Table also shows the variety in what is offered by each provider.
Table 3 is a new comparison this year, and shows the types of schemes available for providers. The survey asked providers whether they offer a full, hybrid, 90/10 or a deferred SSAS – a scheme that invests wholly in insurance company pension funds.
All but three providers offer just a full SSAS with no other alternatives. Hanover Pensions offers a full, hybrid and deferred scheme. Old Mill offers the same, while Scottish Widows offers a full and hybrid SSAS. No provider offers a 90/10 SSAS, where 90 per cent of the scheme’s assets are invested in insured funds and 10 per cent in non-insured assets such as unit trusts.
Industry concerns
As with any product, SSASs are not immune to provider and adviser concern. For example, Barnett Waddingham says one of the biggest concerns of the SSAS market is that the schemes continue to thrive on their flexibility and any potential challenge to this will impact on the market.
“Challenges can come from changes to legislation and other parts of the pension universe. An example is the restriction in Sipp flexibility as a reaction to satisfying the apparent demand of the regulators,” the firm says.
Additionally, it adds the market has enjoyed a healthy period as investors are looking to gain more control over their pension savings as it has been seen as a more flexible option. This has been despite having to pay a premium for the added investment choice and, to some extent, added consumer protection.
TJ Green said that constant legislative change for SSASs is a “disincentive” for any long-term commitment.
One other area that has concerned providers has been regulation. Last year, 29 per cent of survey respondents identified regulatory change as the area of most concern, covering a wide range of issues. Providers said they were worried about the almost constant changes to pensions legislation and HMRC rules, highlighting the difficulties of making long-term retirement saving plans when the playing field keeps changing.
Regulatory worries
But as a SSAS provider, Dentons’ concerns lies around the perceived lack of regulation that surrounds SSASs as compared to Sipps.
