P2P Pension Products Proliferate

By Ryan Weeks on Thursday 8 January 2015

Alternative Lending

Another of the UK’s budding peer-to-peer lenders has hopped aboard the now fast-moving peer-to-peer pensions train.

Rebuildingsociety joins the likes of ThinCats and Proplend in having now forged an arrangement with the P2P partner-of-choice SIPPclub. The platform’s investors will now be able to invest via a new product named the EvolutionSIPP – an opportunity reserved exclusively for SIPPclub members. As you will no doubt know, all investments made through a SIPP are tax-free – meaning participating investors will stand to recoup higher rates of interest through the rebuildingsociety platform.

Nick Moules, Marketing and Communications Manager for the platform, weighed in:

“We’re delighted to be offering this service to our investors through SIPPclub.

“There is a tremendous opportunity to attract pension money into the peer-to-peer market, even if much of the attention in recent months has been focused on ISAs and institutional money.


“When ISA lending become possible in the future, it’s likely there will still be greater scope for lending pension money on peer-to-peer platforms, for pension contribution limits are much higher. Furthermore, the funds already under management are significant.  It’s estimated there is currently around £150 billion invested in SIPPs in the UK. 

“As the peer-to-peer market proves itself capable of offering reliable returns over the longer term, we expect pension lending to become an increasingly important part of our business.”

We recently covered the news that Zopa is busily constructing a peer-to-peer funded alternative to annuities. A recent shift in regulation served as the impetus behind the move. Pensioners will have far greater access to their pension savings as of April 2015. We’ve suggested that pension products are quickly shaping up to be the next attention hotspot for peer-to-peer platforms, and today’s news from rebuildingsociety adds fuel to that fire. 

Indeed, moments after posting an initial version of this article we heard that RateSetter too is moving into the retirement space with no less than four self-invested pension firms. Business Development Manager Ceri Williams told the FT Adviser that the platform is on the brink of striking deals with two providers, with a further two to follow towards the end of Q2. 

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