In just 4 days time comes the introduction of new reforms that will bring greater choice and flexibility to millions of people reaching retirement. Over 55s will be able to access their pension pot and spend it in any way they wish, as opposed to the usual requirement of buying an annuity.
Ministers have said up to £140 billion worth of defined contribution wealth is expected to be released when the changes come into place next week, with pensioners having accumulated an average of £25,000 per person.
From Monday, there will be several options available to those approaching retirement. They could take their whole pension in one go, still get a guaranteed income from buying an annuity, or opt for flexible drawn income drawdown, whereby the pension remains invested and could still hopefully earn returns whilst still being accessible.
If opting for the latter, there are many investment options available to over 55s, including peer-to-peer lending which could be considered as part of a balanced investment portfolio.
Wellesley & Co. is a peer to peer lending platform that invests solely in asset backed loans made by its sister company Wellesley Finance Plc, offering rates of return up to 6%. Peer-to-peer lending is not covered by the Financial Services Compensation Scheme, your capital is at risk and interest payments are not guaranteed if a borrower defaults. It is important that you seek tax and financial advice when considering your investment options.
Wellesley & Co offer fixed rates on terms of 1, 3 and 5 Years. Customers can receive their interest paid monthly on the 3 and 5 year terms. This is a popular option for those looking to receive an income albeit not guaranteed if borrower defaults exceed the balance of the discretionary Wellesley Provision Fund.
For further information regarding the risks involved in investing in Peer-to-Peer lending with Wellesley & Co. please click here.