What is a SIPP?

A SIPP gives you the autonomy to make your own investment decisions with your retirement savings. This is in contrast to more traditional pension schemes where you generally rely upon a third party to make the investment decisions on your behalf. Each SIPP will have its own scheme rules which will set out the range of investments that may be held.

Contributing to a pension can attract certain tax benefits. In addition interest and other income generated inside a pension wrapper are typically not subject to taxation, which means you are able to retain all of the interest you earn. Tax treatment will depend on your individual circumstances and may be subject to change in the future.

Can RateSetter investments be held in a SIPP?

People with a SIPP are granted a lot more flexibility, and can hold a wide range of investments within their pension. HMRC has set out guidelines for what can and can’t be included.

In addition, individual SIPP operators will have their own policies and rules on which investments their beneficiaries can hold.

RateSetter is one of the first P2P platforms to be available through a SIPP. We’ve made this possible by teaming up with a number of forward-thinking SIPP operators. Investors with a SIPP operated by one of these platforms will be able to benefit from the normal features and interest rates of the RateSetter platform combined with the tax advantages of a pension.

In addition, if you or your company have a Small Self-Administered Scheme (SSAS), you can also invest those funds into RateSetter.

RateSetter welcomes enquiries from other SIPP and SSAS operators who would like to learn more about peer to peer lending.

Who are SIPPs for?

SIPPs are for anyone who wants to take more control of the way they save for retirement. There are no restrictions on who can open a SIPP but a SIPP may require more work than a standard pension, as you’ll need to be more hands on with your investment portfolio, because as their name implies the schemes are self-invested. In this way SIPP account holders are given much more control over their financial future.

Retirement is often something we take for granted and is commonly swept under the carpet to be dealt with a later date. The SIPP structure offers a way of planning for retirement in your own way.

How do SIPPs work?

There are a large number of SIPP operators in the UK. Each of these will have its own product features, investment options, and charging structures. When choosing which SIPP operator to use, investors will need to decide which one best meets their own particular requirements, and in some cases may appoint a financial adviser to help them decide.

A number of SIPP operators (currently four) enable clients to allocate a part of their pension assets to the RateSetter platform. This means that it is possible to diversify a pension portfolio to include peer to peer loans alongside other investments such as stocks and shares and funds.

Investments made by a SIPP onto the RateSetter platform operate in a very similar way as a RateSetter Everyday account. Account holders can make investments into any of the four RateSetter markets in the usual way, and access your SIPP account online at any time. It is important to note that any deposits or withdrawals into SIPP accounts are made between RateSetter and your SIPP bank account – the SIPP bank account is set up by your SIPP operator.

How do I get started with a SIPP?

If you would like to invest part of your self-invested pension plan onto the RateSetter platform, it will be necessary for you to open a SIPP with a provider that has an agreement with RateSetter.

If you already have a SIPP with another provider it is possible to open a second SIPP, or to consider a SIPP transfer (please speak to your current provider as there are likely to be charges involved in doing so).

Currently, we’re working with:

Other things to consider

Saving for retirement requires careful consideration. In many cases investors will benefit by seeking support from a financial adviser to help select an appropriate investment portfolio taking into account factors such as their return objectives and risk appetite. A financial adviser can also help to decide which SIPP operators may or may not be most suitable.

RateSetter are very pleased to have been approved for SIPP investment by the operators listed above and we currently have funded SIPP accounts with each of these. However, RateSetter makes no recommendations or statements on behalf of any of the providers; nor do we offer any guidance or advice to investors on how to choose their provider.

If you have any questions in relation to investing with RateSetter from a SIPP or a SSAS please contact us on: [email protected]

The Provision Fund

Investments on the RateSetter platform, including SIPP investments, are protected by the Provision Fund. Whilst past performance does not guarantee future success, the Provision Fund has ensured that to date, no individual investor has lost a penny through RateSetter.

In 2010 we established the Provision Fund to manage risk and offer greater predictability to investors. And anyone opening a SIPP and investing through the RateSetter platform benefits from its protection immediately.

With £1,455,775,947 lent to date, we’re proud that the Provision Fund has ensured that not one of our 45,353 individual investors has lost a penny. Despite this impressive track record, we like to be clear that the Provision Fund does not provide a guarantee and investments are not covered by the Financial Services Compensation Scheme.