New figures from RateSetter show that since pension freedoms were introduced on 6 April, more than 2,300 new investors aged 55 or over have placed funds on the platform. Those approaching pension age typically invest significant sums with RateSetter - the average account is over £30,000. RateSetter’s oldest investor, who is 102, has earned more than 5% p/a over the last two years.
Due to growing demand from people approaching retirement age who want to invest part of their pensions, RateSetter has formed partnerships with several self-invested personal pension providers, meaning that investors can take advantage of the tax-breaks they provide. RateSetter claims to be the only major peer-to-peer platform that is open to SIPP investment.
Rhydian Lewis, RateSetter’s CEO and Founder, commented:
“With plummeting returns from annuities, pension freedoms have been well received by investors planning for retirement.
"We’ve seen a surge of investors coming to RateSetter directly and via Independent Financial Advisers and SIPP providers. Investing in peer-to-peer is becoming more mainstream and the introduction of Innovative Finance ISAs in April may further strengthen this trend.”
