Pension Awareness Day on 15th September is an annual reminder to take an interest in how hard your savings and pension are working for you in retirement.
As a retiree you have plenty of choice about how to use your pension to provide the income you need in retirement. For instance, you can leave money invested in the stock market while making regular withdrawals to cover living expenses (an option known as drawdown) and, of course, you can also take 25% of their money out of your pensions tax-free for use in other investments
These alternative options mean that pension savings have the opportunity to continue to grow even after retirement: a factor that has become increasingly important given the significant rise in life expectancy in recent decades.
But with this potential growth comes, as ever, an element of risk: by staying invested in shares, for example, there is a chance that the value of your capital could go down as well as up. And another possible downside of drawdown is that the investor takes too much income in the early years and thereby runs out of money at some point later on.
So, it is hardly surprising that a number of alternative forms of investing have become popular.
Peer-to-peer (P2P) lending is one investment option that has a lot to offer if you are happy to take on some additional risk compared to cash or bonds but with less risk and volatility than investing in shares. If you don’t feel your capital is working hard enough then investing via platforms like FOLK2FOLK can help you sweat every pound by providing an additional source of income to support your lifestyle during retirement while preserving your capital. Additionally, secured lending provides you with the peace of mind that your capital is secured against tangible assets of land or property.
In the five years since FOLK2FOLK began nearly £250m has been lent via its platform without a single penny lost*. If you would like to find out more about FOLK2FOLK’s secured lending and how you can supplement your monthly income with our 6.5% p.a. interest rate while helping rural businesses and supporting your local economy, call us on 0300 0535532 or visit www.folk2folk.com.
*Since FOLK2FOLK began in 2013, no Lenders have lost any money however this refers to the past and past performance is not a reliable indicator of future results.