Since the new pension freedoms people are now investing their pensions in peer to peer loans. The reasons for this rise in innovative retirement investments is clear.
Why settle for low interest payments on gilts or cash when you can earn an average of 7 – 8.5%* with ThinCats peer to peer loans?
The interest rates of peer to peer lending are making it an increasingly attractive alternative. While there’s always an element of risk, the consistent performance of peer to peer lending has convinced many people that the rewards outweigh the risks.
At ThinCats our robust and diligent processes for assessing business proposals and vetting applications for loans have made us an industry leader and cemented our reputation for high quality, lower risk deals.
Note: Since everyone’s financial situation is different, it is important for you to seek independent financial advice before taking any action.
In fact, recent research by the Yorkshire Building Society shows that pensioners are now “as likely to invest in peer-to-peer loans as they are in shares and bonds.
*Estimated weighted average annual interest after all costs and provisions for losses of actual defaulted loans after forecasted recovery of security but before income tax (2012 to date). Past performance is not indicative of future results. Capital is at risk.
Lending through a pension fund
There are two ways of using your pension to invest in peer to peer lending. You can use a Self Invested Personal Pension (SIPP) or Small Self Administered Scheme (SSAS).
With SIPPs and SSASs you are in control of exactly how and where your pension is invested. Interest earned by a SIPP / SSAS is tax free**, and they are particularly effective for higher rate tax payers because funds transferred to a pension fund immediately attract tax relief at your marginal tax rate.
We work with two providers, SIPPclub and Whitehall Group, to help investors establish a SIPP / SSAS that can lend through ThinCats. You can find out more about these providers below.
Please avoid using your pension fund to invest in Community Chest loans. Because your pension does not pay tax on its income it cannot claim the tax relief associated with a Community Chest loan.
**Tax treatment depends on the individual circumstances of each client and may be subject to change in the future
SIPPclub provides information and support to people with self-invested pensions. Whether you’re growing your pension fund or drawing your income in retirement, SIPPclub can help you discover how to take advantage of the significant benefits of lending your pension money through ThinCats.
To find out whether a SIPP or a SSAS is more appropriate for your circumstances, and which provider is likely to best suit your requirements, click the link below.
0845 056 8734
Whitehall Group (UK) Ltd
Whitehall Group is an independent Professional Trustee and Scheme Administrator with over 35 years of combined experience providing bespoke SSAS solutions to clients. Whitehall Group offers comprehensive support to investors throughout the process of setting up, managing, and reaping the benefits of SSASs.
For more information, get in touch with Whitehall Group:
A guide to using
a pension fund with ThinCats