Lending Works targets over 55s ahead of pensions freedom day
Online peer-to-peer lender Lending Works is the latest firm looking to benefit from the anticipated dash for cash in April when pension freedoms come in, after launching new products today for the over-55s.
From April, the firm will offer four new features for the pensions market including a bonus for new lenders aged over 55 of one per cent of the money they lend.
The company has also pledged to raise its customer service by providing pensioners with account managers and an “automated income tool” allowing them to draw down a pre-selected amount each month from the funds that are being repaid by the borrowers.
New rules that come into force in April, will make it easier for those approaching retirement to take cash from their pension pot.
“We anticipate a lot of demand for peer-to-peer lending from older lenders when the new pension rules come into force,” Lending Works’ founder and chief executive, Nick Harding, said, adding that over half of its lenders are already aged 55 or older,
“Our new features respond directly to what this important customer segment need, want and value from their personal finance platforms,” Harding said.