Following the Covid-19 outbreak and the current economic environment, RateSetter announced on 4 May a temporary reduction in interest for the remainder of the year. During this time, investors will receive only 50% of their interest with the other 50% going to the Provision Fund, for the protection of all investors.  Also, since the outbreak, the time it is taking investors to release their investments is currently longer than normal. Further information is available here. 

Boost your pension with a SIPP.

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 has its own scheme rules which set out the range of investments that may be held.

Contributing to a pension can attract certain tax benefits, and 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, each SIPP operator has 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 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. You can reach our team by calling 020 3142 6226 or alternatively emailing them at [email protected].

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 you’ll need to be more hands on with your investment portfolio, because the schemes are self-invested. In this way SIPP account holders are given much more control over their financial future.

How do SIPPs work?

There are a number of SIPP operators in the UK. Each has 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.

Morgan Lloyd enables 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 regular RateSetter account. Account holders can make investments into any of the three RateSetter products 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 work with Morgan Lloyd.

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 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]

Need some help?

If you're an existing RateSetter investor, or interested in investing with RateSetter through the RateSetter ISA and still have questions then contact us on:

  • Call

    020 3142 6226