Innovative new way to earn investment income
Silver surfers are turning to an innovative new way to earn investment income, new research has found.
Trillion Fund, the renewable energy crowdfunding platform, has found that a third of all lenders to its peer-to-peer wind raises are over 61-years old, suggesting that the generation approaching or in retirement is not so old-fashioned about alternative investments.
Through peer-to-peer loans such as E5 Energy, Trillion Fund is giving investors a strong rate of return while also helping the UK to meet its clean energy goals.
The analysis of more than 300 lenders that have so far participated in loans to wind projects on the website revealed that 32 per cent of those lending are in or close to retirement.
The silver crowd is responsible for putting the most money into crowdfunds on the site. Almost half (49 per cent) of all funds raised come from this age group, although this is perhaps less surprising, given they have typically accumulated more in savings and investments than younger generations.
Older lenders are also more likely to invest higher sums. The average investment among the over 61s across two raises is £7,017.52, compared with £2,625 for younger lenders.
TheE5 Energy raise, which offers 7 per cent until April 30 on amounts over £50, has raised £1.05 million to date. So far, 34 per cent of these lenders are over 61, contributing 54 per cent of the total raised.
Julia Groves, chief executive of Trillion Fund, said: “You might expect crowdfunding to be the investment choice of a younger generation. But our research suggests that the silver pound, ever on the hunt for higher risk-adjusted returns than are available from traditional institutions, have ended up becoming the unlikely champions of crowd lending.
“Unlike equity crowdfunding, which is usually high risk, crowd lending is often lower down the risk curve, making it potentially palatable for even more cautious investors who are looking to diversify some of their investments.
“Peer-to-peer loans to renewable energy also offer alternative income, making them particularly attractive to older people who prefer income-based returns, rather than capital growth. We anticipate that new pension freedoms, allowing older people more choice, will mean more start to examine the merits of renewable energy.
“Wind and solar projects may also appeal to this demographic because they are tangible assets, producing something real and making revenue in an easily understandable way. We are finding that more and more older people are prepared to accept greater risk than they would face with a savings account for the potential higher returns from asset-backed lending to projects.”
The contents of this article are for reference purposes only and do not constitute financial or legal advice. Independent financial or legal advice should be sought in relation to any specific matter. Articles are published by us without any knowledge or notice of the circumstances in which you or anyone else may use or rely on articles or any copy of the information, guidance or documents obtained from articles. We operate and publish articles without undertaking or accepting any duty of care or responsibility for articles or their contents, services or facilities. You undertake to rely on them entirely at your own risk, and without recourse to us. No assurance of the quality of articles is given or undertaken (whether as to accuracy, completeness, fitness for any purpose, conformance to any description or sample, or otherwise), or as to the timeliness of the publication.
Latest posts by Sally - Silversurfer's Editor (see all)
- Rick Stein’s fig and frangipane tarts - November 18, 2019
- Are you planning to shop on Black Friday? - November 18, 2019
- Did Prince Andrew’s Newsnight interview make his predicament better or worse? - November 17, 2019
- 400 Years Young! - November 13, 2019
- Get more out of your phone - November 12, 2019
Leave a Comment!
Community Terms & Conditions
These content standards apply to any and all material which you contribute to our site (contributions), and to any interactive services associated with it.
You must comply with the spirit of the following standards as well as the letter. The standards apply to each part of any contribution as well as to its whole.
be accurate (where they state facts); be genuinely held (where they state opinions); and comply with applicable law in the UK and in any country from which they are posted.
Contributions must not:
contain any material which is defamatory of any person; or contain any material which is obscene, offensive, hateful or inflammatory; or promote sexually explicit material; or promote violence; promote discrimination based on race, sex, religion, nationality, disability, sexual orientation or age; or infringe any copyright, database right or trade mark of any other person; or be likely to deceive any person; or be made in breach of any legal duty owed to a third party, such as a contractual duty or a duty of confidence; or promote any illegal activity; or be threatening, abuse or invade another’s privacy, or cause annoyance, inconvenience or needless anxiety; or be likely to harass, upset, embarrass, alarm or annoy any other person; or be used to impersonate any person, or to misrepresent your identity or affiliation with any person; or give the impression that they emanate from us, if this is not the case; or advocate, promote or assist any unlawful act such as (by way of example only) copyright infringement or computer misuse.
Nurturing a safe environment
Our Silversurfers community is designed to foster friendships, based on trust, honesty, integrity and loyalty and is underpinned by these values.
We don't tolerate swearing, and reserve the right to remove any posts which we feel may offend others... let's keep it friendly!