Many providers have a more complex charging structure than just one element to an annual fee, something Money Management hopes to investigate further in next year’s survey. A look at Barnett Waddingham, for example, shows its annual fees begin at £880, but a closer look at its fee schedule shows numerous additional costs. Accounting for tax return starts at £170, fund allocation charges begin at £240 and a review of income drawdown pension costs from £300 per member. It should be noted that this is just one random example of a provider with additional fees, and many others have different charges, so a fee schedule is an important tool when looking to set up a SSAS.
As fees differ and should not count as the be all and end all, the Table also looks at what each scheme offers. The Table shows whether companies offer independent trustees, scheme administration, in-house actuarial services, retirement planning advice, investment advice and general consultancy. No provider is the same and the Table illustrates the diversity between providers.
Table 3 looks into the types of SSAS available. Similar to last year, just a handful of providers offer models beyond a full SSAS. 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). As with last year, all but three providers offer just a full SSAS with no other alternatives. Hanover, IPM Trustees and Old Mill Group offer a hybrid and deferred SSAS option as well as a full SSAS. As with last year, no provider offers a 90/10 SSAS – a scheme where 90 per cent of assets are invested in insured funds and 10 per cent in non-insured assets such as unit trusts. A historical type of scheme, it is now rare to find a provider who offers it.
Adviser issues
As the Tables indicate, SSASs are still a major part of the pensions industry. But advisers need to be aware of many issues when choosing a provider.
Carl Lamb, managing director of Norwich-based advisers Almary Green, says because the levels of lending to small businesses in the UK are still low and there is a continued reticence by the banks to lend, this is putting great pressure on owner managers that want to grow their businesses. “We are seeing an increased number turning to a SSAS and the loan back facilities that can be used,” he says.
“Service is the priority when choosing an administrator. We would only use a firm that has years of experience and highly knowledgeable staff. We steer clear of any that have a high staff turnover, have SSAS products as a non-core part of business or continually change strategy. We need people focused on delivering high service levels, technical support and administration excellence,” he adds.
