How to incorporate peer-to-peer lending into your retirement planning
July 27, 2017 | By: High50
With many options available to help people support their retirement, peer-to-peer lending should be one to consider.


Money_Pensions_What is drawdown_Stocksy 620x349Over the past ten years, peer-to-peer lending has taken the UK by storm and has become a viable option for many people looking for a potential retirement income. To date, more than £10 billion has been invested through UK peer-to-peer lenders, returning on average 7.17% total gross interest. (source: AltFi Data)

As a result, P2P lending is becoming more popular with people looking for alternative ways to invest their pension savings before and after retirement. In fact, investments in peer-to-peer are now as frequent as investing in shares and bonds in the UK, showing that this form of investment is becoming more mainstream when compared with more traditional products. (Source: Daily Telegraph)

Last year’s drop in interest rates of the one-year Pensioner Bonds has also prompted retired investors to seek out better rates. With the right peer-to-peer loans that are backed by tangible assets like property, such as ones offered by Assetz Capital, the risk of loss can be reduced as those assets may be sufficient to recover lent funds should the loan default. Even with tangible assets held as security though, losses are still possible so it is important to remember that capital is at risk with peer-to-peer lending

There are many ways to start. For example a Peer-to-Peer SIPP allows people to share in the funding of a portfolio of loans to credit-worthy businesses using their Self-Invested Personal Pension (SIPP).

People new to peer-to-peer lending often start small, investing £100 or so to see how it works. Once they are comfortable with it, they invest more.  As a leading P2P platform, all of Assetz Capital’s loans to small and mid-sized businesses are backed by tangible assets in order to protect customers’ investments. Nonetheless, the cost of setting up and running a SIPP is an important consideration, as is factoring in these costs compared with potential returns of Peer-to-Peer lending. Having a larger investment within a SIPP and also achieving higher returns may help to mitigate those costs.

Investors should take some time to fully explore their options and spend time researching which platform would suit them best. At Assetz Capital, our number one priority is to protect our investors’ capital as best we can and secondly to produce a healthy return and that is why we have set up a network of offices throughout the UK to meet and properly vet the businesses that we are lending money to, as well as requiring tangible assets to the value of the loan as a security.

To register your interest in peer-to-peer lending, sign up to receive updates and information from Assetz Capital, one of the UK’s leading and fastest growing peer-to-peer lending platforms.

Through the Assetz Capital platform, investors over the past four years have provided more than £300m of funding for UK businesses that meet the platform’s strict credit criteria, earning them more than £24m in total gross interest.

It is also one of only two peer-to-peer lenders to hold the coveted Defaqto 5-Star rating.