Can I invest my pension in Crowd Funding?

It is a question that is often asked, particularly among property investors with existing or frozen pensions who want to move away from the volatility of the stock markets.

These pensions have often been neglected, if not by the current provider, by the pension holders themselves who have taken little or no interest in these investments. Imagine if you had an account with tens, if not hundreds of thousands of pounds on deposit, would you be so quick to ignore it?

One reason that this may be the case is that the investor is not aware of the alternatives. Many believe that a pension can only be invested in the traditional manner into equity markets via financial institutions such as pension and insurance companies and banks. This simply is not the case, many people are now seeking to take control of their pensions by setting up Self Invested Personal Pensions (SIPPS) and Small Self- Administered Schemes (SSAS pensions)

These pension schemes give the holder much greater control over where their funds are invested, either in a hands on manner such as buying commercial property or land and even a facility to loan money to your company for the purchase of stock, business premises or residential property.

A popular way in which these funds are invested in a completely hands off way is through property crowd funding. Property crowd funding has for some time now been considered as a mainstream investment vehicle and is used by many individuals and companies for both shorter term cash and longer term pension investments.

There are two options available for property crowd funding, Debt (Peer to Peer lending) and Equity crowd funding.

Debt (Peer to Peer lending)

This is the simplest form of crowd funding. An individual or company raises funds for a project by offering investors a fixed return over a fixed term with the security of a first legal charge over the property involved.

Typically the returns for this type of investment are between 6 and 12% per annum


This concept is a little more complicated and deemed as a higher risk option, therefore is only available for cash investments. Your funds will purchase a stake in the business that is developing the project. As with any share-based investment, if the business is successful, the value of your share increases, however the share value could also fall in value or be rendered worthless should the business fail.

Typically the returns for this type of investment are between 12 and 20% per annum

As with all investments, there is a risk of loss of capital, however many people view an investment in property as having a lower risk and less volatility than the traditional stock market investments where their pensions are currently.


There is an opportunity for property investors or anyone who wishes to swap the ups and downs of equity based investments currently held in traditional pension arrangements to benefit from the security and peace of mind that Debt (Peer to Peer) property crowd funding offers through its fixed term, fixed return investments.

If you’d like to find out more about how property crowdfunding could help you grow your pension Click Here to arrange to speak with one of our experienced consultants.