Case Study: Meet Pamela, one of our lenders
Pamela is 59-years old, married, and lives in Woking, Surrey. She has enjoyed a long and successful career as a Human Resources Manager, although is very much looking forward to her retirement years. At this stage, Pamela plans to retire at the age of 60, and, as a keen traveler, she’s most excited about realising her dream of touring the world.
Pamela’s views on money, risk and the online platform
Pamela has been with Lending Works since January 2015, and has lent out a total of £21,000 through the company thus far. Although she’s had no prior experience with peer-to-peer lending (P2P), she has always been comfortable with using online platforms to manage her money.
“I find managing my money online to be the easiest way as I can access my accounts at a time that is convenient for me,” she commented. “Some sites are easier to use than others, but this is still my preferred option.”
Retirement has always been the end goal of her savings plan, and Pamela believes she has consistently been willing to take on a degree of risk in order to maximise her retirement income.
“I take calculated risks by ensuring I research before committing. I’m prepared to accept a small risk in order to get a better return for my money. Only very occasionally does money keep me awake at night, and usually only if large amounts are concerned. In general though, my view is that there are more important things in life.”
Pamela the peer-to-peer lender
It is in the last 18 months that P2P lending has really made its presence felt in the UK, with the industry now valued at around £3 billion. Like many, Pamela was previously unfamiliar with the concept, but having seen the returns her husband (a P2P lender of 3 years) had earned, her curiosity was piqued.
“My partner has been investing in P2P for some time, so he explained everything to me and advised me how to get started. I was happy to take his advice and learn from his first hand-experiences,” she said.
“I wanted to do something worthwhile with my money. It has been less beneficial to save with the banks for some time and I already have a number of other investments, so trying a new opportunity that offered attractive rates was a big pull for me.
“I haven’t encountered any drawbacks so far. I actually found the process incredibly easy, and would recommend anyone to look into trying it for themselves,” Pamela added.
Pamela’s other investment
While age is perceived as an important element in the profile of an early adopter, Pamela has always been keen to look at new ways of diversifying her portfolio.
“I have savings and investments across various different options in order to both spread any risk and maximise the return,” she noted. “I also have some that are accessible if needed and others that are invested with a longer-term view. P2P is unique so cannot really be compared to other types of savings and investments, but for me it was an exciting new venture.”
Pamela’s views on the pension reforms
Like many soon-to-be pensioners, Pamela kept a close eye on developments concerning April's pension reforms. It’s a matter that has polarised opinion in some quarters, but the 59-year old believes the increased degree of control she now has will give her a wonderful chance to make her money go further during her golden years.
“To me, pension freedoms mean being able to manage my finances to achieve maximum return on my investments, and I’m delighted that this new set of rules has come into effect in time for my retirement,” Pamela explained. “I believe that annuities still have their place, but I think it’s great that pensioners will now have a whole new set of choices at their disposal.
“P2P and investments will be an important source of income for me when I retire,” she continued. “I intend to use the flexible options regarding taking my pension, and continue to manage my investments so that I can maximise my retirement income.
“I just hope it will be enough so that I can visit all those places in the world that I’ve always wanted to see!”
Get email updates for future blogs:
Our website offers information about saving, investing, tax and other financial matters, but not personal advice. If you're not sure whether peer-to-peer lending is right for you, please seek independent financial advice, and if you decide to invest with Lending Works, please read our Key Lender Information PDF first.
Wednesday’s Budget speech, coupled with the cut to Bank of England rates, represented a decisive response to the coronavirus. Here we analyse the impact it will have on mitigating disruption from Covid-19, along with the long-term implications of this significant fiscal stimulus.
Rumblings from the Treasury ahead of next week's Budget suggest tax grabs will be needed to fund increased spending, and it appears UK enterprise could be in the firing line. Here we articulate why targeting entrepreneurs and small business is ill advised.
In a difficult climate, customer acquisition and lead generation present stern challenges for UK retailers, and a great deal of marketing spend invariably gets directed towards getting feet through the door.
Over the last decade, there can be little dispute that the reputation of mainstream banks – and particularly the so-called ‘Big Four’ (HSBC, Barclays, Lloyds and RBS) – is at its lowest ebb.
The 2019-20 ISA season has been a damp squib, with banks disinterested in attracting savers’ cash, rates cut, and the stock market in freefall. However, the emergence of the IFISA means alternatives beckon for those seeking a stable middle ground in terms of risk and reward.
In a decade of slow recovery, the rapid rise in asset prices has been the standout. But how sustainable has price growth been, and could we be in the midst of a bubble?
Most people consider income tax to be a given, but in the UK it is barely two centuries old. In this article, we look at how this tax has developed over the years, and also why it is set to remain at the core of our tax system for many decades to come.
Open banking celebrated its second birthday last month, but has the ‘revolution for financial services’ that was promised actually come to pass? In this article, we look at the progress the initiative has made so far, and what the future holds in the face of high levels of scepticism.