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RateSetter: Pension and retirement options

Can the innovative peer-to-peer lending service provide the right pension options for you?

RateSetter is a peer-to-peer lending service, and has branched out to offer a pension option for investors. The company was founded in Britain in 2010, and since then it has been responsible for matching over £2bn of loans on the platform.

RateSetter have introduced a SIPP option to the service, allowing you to invest with the tax benefits of a pension. The company also offer investors protection from missed repayments through their “provision fund” scheme.

Keep on reading to find out more about RateSetter’s pension options.

What does RateSetter do?

RateSetter is a peer-to-peer lending company founded in 2010. They are well known for introducing the concept of a “Provision Fund” to peer-to-peer lending. They are also one of the first peer-to-peer lending companies to permit investment through a Self-Invested Personal Pension (SIPP). The company has overseen the investment of over £2bn from more than 400,000 investors and borrowers.

warning iconWarning: The value of investments can go down as well as up so you may not get back the money you invest. Please ensure you understand the risks.

RateSetter SIPP

RateSetter allows investment into their portfolio through a SIPP. This allows you to benefit from the returns of a RateSetter loan, while also benefiting from the tax advantages of a pension scheme.

You can invest part of your SIPP in RateSetter’s platform if you have a SIPP with one of their partners. If not, you can transfer your SIPP to one of these providers, but you may be charged a fee.

You can find further details on how to invest your SIPP on the RateSetter website.

Some of the benefits of a RateSetter SIPP:

  • Provision fund protection
  • Diversified portfolio
  • Tax benefit of a pension, returns of RateSetter loans

What is a provision fund?

Provision funds were introduced to peer-to-peer lending by RateSetter, and are a way of keeping investors’ money safe.

It is essentially a pot of money which works as a buffer against poorly performing loans, so that investors don’t lose out on repayment fees.

How safe is my investment?

Trusted by hundreds of thousands of investors, RateSetter is a secure company that has been managing investments since 2010.

RateSeter is also authorised and regulated by the Financial Conduct Authority (FCA) and is bound by their rules and regulations in the conduct of the investment business.

However, as with all investments your capital is at risk, and you should seek financial advice before taking out a SIPP.

RateSetter is also not covered by the Financial Services Compensation Scheme.

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