By Financial Hub Editorial · Published 10 July 2026 · Last reviewed 6 June 2026
The short answer
A SIPP (Self-Invested Personal Pension) is an individual pension you open yourself; a SSAS (Small Self-Administered Scheme) is an occupational pension set up by a company for its directors. The big practical differences: a SSAS can make a secured loan back to the sponsoring business and pools several members in one scheme, while a SIPP is simpler, individual, and cannot lend to your company. SIPPs suit most individuals; a SSAS suits established company directors who want those extra powers and will accept more admin and cost.
Same idea, different wrapper
Both a SIPP and a SSAS let you choose your own investments rather than handing the decisions to an insurer. The difference is who owns the scheme and what it is allowed to do.
Where they diverge
Ownership: a SIPP is yours as an individual; a SSAS belongs to a company scheme with member-trustees.
Loanbacks: only a SSAS can lend to the sponsoring employer (secured, capped at 50% of net scheme assets, max five years).
Membership: a SIPP is one person; a SSAS pools a small group, often directors and family.
Admin and cost: a SSAS generally costs more to run because of the trustee and scheme-administration overhead.
So which one?
For most individuals a SIPP is the simpler self-invested route. A SSAS earns its keep when you specifically want the loanback or company-property powers. Neither is a default — the right answer depends on your business and goals, so take advice.
Company occupational schemeSponsoring employer required
Loanback to your business
SIPP: No · SSAS: Yes (limited)SSAS secured loanback capped at 50% of net assets
Best fit
SIPP: individuals · SSAS: directorsDepends on circumstances — get advice
Frequently asked questions
Can a SIPP lend money to my company?
No. Lending to a connected party (like your own business) is not permitted from a SIPP. Only a SSAS can make a secured "loanback" to its sponsoring employer, and only within strict HMRC limits.
Which is cheaper, a SIPP or a SSAS?
A low-cost SIPP is usually cheaper to run than a SSAS, which carries scheme-level administration and trustee costs. The SSAS extras only pay off if you use its special powers.
Can I have both?
Yes — they are not mutually exclusive. Many directors hold a personal SIPP alongside a company SSAS. A professional can help you see whether that makes sense for you.
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Important — this is general information, not financial advice. This page covers an FCA-adjacent topic (e.g. pensions, trusts or tax planning) and is provided for education only. It does not account for your personal circumstances and is not a personal recommendation. SSAS, trust and tax decisions can have significant and hard-to-reverse consequences — before acting, get advice from an FCA-authorised adviser, a qualified tax adviser, or a STEP-qualified solicitor. Tax treatment depends on your individual circumstances and may change.