Linked Finance has launched a new type of account that allows holders of self-administered pensions to make P2P lending to Irish SMEs part of their pension investment portfolio.

These accounts have been developed in conjunction with some of Ireland’s leading pension trustee companies so that they meet the typical requirements associated with the most common self-managed pension products on the Irish market.

With net returns of between 7% and 8.5%, 24/7 online account access, complete control of lending activity, and monthly repayments of principal & interest, P2P lending is becoming an attractive asset class for a growing number of investors.

These pension accounts will allow holders of existing self-administered pensions, to lend on Linked Finance as part of their planning for retirement. Lending in this manner allows those users to avail of the tax benefits associated with investing through a pension plan. Those with the following self-managed pension arrangements already in place can open an account:

– Approved Retirement Fund (ARF)

– Self-Invested Pension Plan (SIPP)

– Small Self-Administered Pension Scheme (SSAS)

– Personal Retirement Bond (PRB)

– Approved Minimum Retirement Fund (AmRF)

Niall Dorrian, CEO, Linked Finance said:

“These new pension accounts will allow people to make lending to local SMEs part of their planning for retirement while availing of the tax benefits associated with investing via a pension product. P2P lending is becoming an increasingly popular asset class and it can be a great addition to any diversified pension portfolio. These accounts are a valuable development for the platform and have real potential to boost liquidity; ultimately increasing access to fast, fair and affordable finance for Irish SMEs”

To be able to lend on the platform, pension accounts must be administered by a participating trustee company. This list currently includes Wealth Options, Bespoke Trustees, Quest Capital and the Independent Trustee Company. Linked Finance intends to expand the number of participating companies in 2018.

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