Fixed Monthly Income – Investing using a SIPP or SSAS

Published on November 10, 2015

Eight years of low interest rates have affected all investors looking for secured, low risk returns, with pension investors being one of the groups who have been hit the hardest.


Traditionally as investors approach retirement they start to move their investments from equities into lower risk income producing assets traditionally cash and bonds. However, with rates at historical lows since the beginning of 2008 returns have been poor and pension pots have suffered.


Those at retirement age have been suffering too as the standard vehicle to provide income in retirement, the annuity, has been paying much lower average returns over the same time period.


Pension investors, looking for secured fixed income, can now enjoy returns offered by the Proplend Peer-to-Peer (P2P) Lending Platform with all the benefits of investing through their pension.


Proplend works with a number of SIPP and SSAS providers to give clients access to Loan Investments secured against UK commercial property and returns of 5-12% pa*.


Investors are free to choose their Loan Investments on a deal by deal basis building a portfolio that best suits their risk and return profile. Each Loan Investment is split into up to three Tranches based on the Loan to Value, this gives investors more choice when it comes to the level of risk and return they are looking for. This can be particularly useful to pension investors whose risk profile will change over time and normally reduce as they approach and enter retirement.


Proplend Loan Tranche_Simple_Nov2015


The Proplend P2P lending platform allows pension investors to receive regular monthly payments, which can remain in the account for re-investment or be drawn down on a monthly basis.


At Proplend we recognise the need for income, especially for those approaching or in retirement, and since our launch cash investors have had access to higher income returns by lending directly to the owners of UK commercial property. Pension investors have the same opportunity to invest in commercial property loans secured with a first legal charge over the property. Using your SIPP or SSAS you can enjoy all of the same tax efficiencies you do with any other investment held in your pension.


To register for a SIPP or SSAS account with Proplend you will need to make an application through your pension provider. Please contact Ben Butterworth, Head of Lender Relations at Proplend on 020 3397 8290 for more details.


Proplend Pensions Page


*After fees but before bad debts and taxes