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A change in the way over 55s are funding their retirement

a change in the way ovver 55s fund their retirement

a change in the way ovver 55s fund their retirementIt seems recent years have seen a shift in the way the over 55s are funding their retirement. The banks are slowly being ‘shunned’ in favour of alternative investment methods, with Peer-to-Peer Lending increasing a huge 84% in 2014 amongst those financing for when they retire. We’re expecting recent pension freedoms to also boost the P2P Lending sector, with many retirees opting to withdraw their pension pot in one go.

A change in attitudes towards investment

Though these alternative methods provide competitive rates in comparison with those offered by the high street banks, there is an element of risk involved. With Peer-to-Peer lending your capital is at risk and interest payments are not guaranteed if a borrower defaults. However, the recent trends are indicating that we’re also seeing a shift in attitudes towards investment. The over 55s are becoming riskier in their investment choices in order to provide a potentially superior income for when they approach their retirement.

Exploring the options

With over 55s seeing, at best, just over 3% return on their investment with the banks (if cash isn’t touched for 7 years), it’s no surprise that this demographic is exploring other options. Property is also becoming a popular investment choice; a survey from the Office of National Statistics found that 42% of people would consider investing in property to make the most out of their money for retirement. This option came ahead of employer pension schemes, savings accounts and stocks and shares.

With Wellesley & Co, investors can earn up to 6.32% per annum through our rapidly growing Peer-to-Peer Lending Platform, offering an attractive alternative for those financing for retirement. Capital is at risk if a borrower defaults. Should a borrower default, the Wellesley model incorporates secured lending and security arrangements however, there is no guarantee that investor’s full capital will be returned.

Asset Backed Lending Platform

For over 55s favouring property as an investment choice, Wellesley’s ‘asset-backed’ lending platform specialises in funding loans to typically but not exclusively property developers. This means that you can consider this option without the additional costs and inconvenience of actually owning property.

Diversifying your money over a range of investment platforms is highly recommended when funding for retirement, and will reduce the impact should a borrower default. If you would like advice regarding your most suited investments, we encourage people to seek a financial and independent Professional advice. If you would like further information on what Wellesley & Co have to offer, please contact our Customer Service Team; [email protected] or 08008886001

Bear in mind

Wellesley Property Bond

  • The Wellesley Property Bond has a fixed rate and duration.
  • The Wellesley Property Bond is an ISA eligible investment, allowing you to earn tax free interest on your investment. Please note, tax allowances and the tax efficient benefit of ISAs could change in the future.

Your capital is at risk and interest payments are not guaranteed. Investment in any Wellesley Property Bonds are not covered by the Financial Services Compensation Scheme (FSCS). In the event of a loan default or if Wellesley Secured Finance Plc becomes insolvent, you may lose some or all of your investment, including interest payments due. If you are in any doubt about making an investment or do not fully understand the risks, you are strongly recommended to consult an independent professional financial adviser before you subscribe.

Wellesley is the singular name for the following collective of companies, Wellesley Group Limited (09811856), Wellesley & Co Limited (07981279) and Wellesley Finance Plc (08331511). Wellesley Secured Finance Plc was established as a special purpose vehicle for the sole purpose of issuing asset backed securities and is not part of Wellesley Group.

The information contained in this website has been approved as a financial promotion for UK publication by Wellesley & Co Limited (FRN 631197) who is authorised and regulated by the Financial Conduct Authority (FCA). Wellesley Property Bonds are issued by Wellesley Secured Finance Plc (the Issuer) and is not authorised or regulated by the FCA.

Wellesley & Co Limited and Wellesley Finance Plc are registered in England and Wales and their registered office and trading address is at St Albans House, 57/59 Haymarket, London SW1Y 4QX. The registered address for Wellesley Secured Finance Plc is at 1 Bartholomew Lane, London, EC2N 2AX.

 

Require further information?
Call our customer service team on 0800 888 6001 or e-mail us on [email protected]