Abundance Pension launches world’s first P2P lending Sipp
The world's first peer-to-peer lending (P2P) self-invested personal pension (Sipp) has been launched by P2P investment provider Abundance.
The Abundance Pension lets individuals invest in renewable energy projects as part of their retirement savings.
However, it comes at a time when the government is scrapping a green tax exemption that's been enjoyed by renewable energy companies since 2001.
"This new product means that the increasing number of people who do not want their money to support businesses they deem to be unethical will now be able to enjoy strong returns with all of the tax advantages of a pension as they save towards their retirement, but without having to swallow their ethics in the process," it said.
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Additionally, there will be no charges on the Abundance Pension for the first year, and this will be followed by some of the lowest charges ever seen on a Sipp.
"We hope that this new product’s unique combination of tax relief, the diversified and uncorrelated nature of our debentures, and the steady and attractive returns they pay from investments matching our customers’ values will make the product a significant new motivation for many people to save more towards their retirement," Bruce Davis, co-founder and joint managing director of Abundance, said.
"Finally they will have easy and direct access to choose between diverse investment assets, all with a social or environmental benefit, and all paying consistent, strong and uncorrelated returns within a tax-advantaged pension wrapper."