Telegraph: Crowdfunding Boon For Pensioners


CurrencyPic

Yours to control

The mainstream media is slowly coming round to the notion that alternative sources of finance may not be so alternative after all. The Telegraph runs a feature on the potential impact of peer-to-peer (P2P) and peer-to-business (P2B) finance on the pension reforms announced in the last UK Budget.

The argument runs that loans with an average 6 per cent income from P2P (more accurately, P2B) can replace annuities. Pensioners who wish to avoid annuities, which provide a lifetime income guarantee, but force customers to sacrifice control of the money in a pension, may well want to look at crowdfunded options.

TelegraphLogo

The Telegraph article states that although investors have thus far used P2P/B loans to grow money more rapidly than through bank savings accounts, new reforms to give the over-55s access to their entire pension pots in retirement could initiate a huge flow of money into P2P/B investments from retired pension savers who require an income.

According to the article's author, this is because the reliable flow of interest from P2P/B lending offers a less risky payment stream than investing in shares.

Money&Co. currently has two loan auctions running with estimated gross yields of 9.1 and 9.7 per cent available. For more information, log in to the site.

And do remember that when you lend, even though we subject borrowing compnaies to rigorous analysis, your money is at risk. For more detail of this risk, click here.


Tags: P2B, P2P, pensions

FOLLOW MONEY&CO. ON TWITTER

Search news

You may put double quotes around your search to search for literals. Max. 4 words inside quotes (dashed words count as one word).

Allowed symbols: " ' & -

More news

2019
SeptemberAugust
July
June
May
April
March
February
January
2018
DecemberNovemberOctoberSeptemberAugust
July
June
May
April
March
February
January
2017
December
November
October
September
August
July
June
May
April
March
February
January
2016
December
November
October
September
August
July
June
May
April
March
February
January
2015
December
November
October
September
August
July
June
May
April
March
February
January
2014
December
November
October
September
August
July
June
MayMarchFebruary

Search blogs

You may put double quotes around your search to search for literals. Max. 4 words inside quotes (dashed words count as one word).

Allowed symbols: " ' & -

More from blogs

2019
2018
2017
2016
NovemberOctoberSeptemberAugustJulyJuneMayMarchFebruaryJanuary
2015
DecemberNovemberSeptemberAugustJulyJuneMayAprilMarchFebruaryJanuary
2014
DecemberNovemberOctoberSeptemberAugustJulyJune



Disclaimer: Money&Co.™ is the trading name of Denmark Square Limited, Company Number 08561817, registered in England & Wales, authorised and regulated by the Financial Conduct Authority (FCA). The company is identified on the Financial Services Register under Reference Number 727325. The registered office is 58 Glentham Road, Barnes, London, SW13 9JJ where the register of Directors may be inspected. Denmark Square Limited (ISA manager reference number Z1932) manages the Money&Co. Innovative Finance ISA.