Abundance has achieved a number of firsts in its three-year life since the first project launched.
We were the first to offer peer-to-peer investment from just £5.
We were also the first debt peer-to-peer company to be authorised and regulated by the FCA – and subsequently setting the standard for the industry today.
And now, we’re the first to launch our own pension, a Self Invested Personal Pension (SIPP) in partnership with European Pensions Management (EPM) for investing solely into projects that generate something good for the environment and society, as well as a long-term retirement income.
Having heard from our customers that they were keen for somewhere positive to put their pension savings, we decided to see whether the rest of the population was looking to do the same.
A lot of them are. We commissioned OnePoll to carry out an independent survey in early October, and these were the key findings:
• Almost half of UK adults (47%) are concerned about the effect of global stock market shocks on their pension
• Accordingly, 44% are interested in pension options that reduce exposure to stock markets
• One fifth of people (21%) would save more into their pensions of they knew exactly where their money was going
The pensions industry is huge. Total funds held in UK pension schemes were a staggering £2,400 billion in 2012.
If peer-to-peer and crowdfunding can address the concerns of half the UK’s pension savers by providing pensions where they can keep some of their money away from stock markets, the rewards are obvious.
Not only for our industry, but also for customers.
It’s a win-win.
The crowdfunding and peer-to-peer industry is already well-established and growing fast. Offering mainstream financial products such as pensions does two things:
• It provides repeat customers, and repeat reinvestment, for very long time frames – up to fifty years, perhaps more
• It also proves our industry is ‘coming of age’. In a virtuous circle, if we offer these products, and people choose them, and we continue to provide a high level of service and attractive features and benefits, more people will choose them, which means even more recognition of the good in alternative finance
And for customers?
The Abundance Pension has some of the lowest fees in the industry.
We’re being totally transparent with customers about how much they need to make it worth it (so they aren’t paying more in management fees than they’re earning in a year).
Customers get to choose and see exactly where their money is going, and how it’s earning them a retirement income.
And, importantly, as the survey found, it’s a way for people to save some of their money outside the stock market, and thus protect it from the day by day volatility and periodic shocks.
Roll on the Positive Pensions revolution!
The Abundance Pension is a self-invested personal pension (SIPP) provided by European Pensions Management (EPM), who are authorised and regulated by the FCA (461099). Setting up an Abundance Pension involves entering into a SIPP contract with EPM to hold Abundance Debentures. Abundance is not a direct pension provider and cannot give pension advice.