As crowdfunding continues to become a more popular fundraising method, the areas of life it can be applied to continue to evolve as well. This article will explain how crowdfunding is becoming an innovative way to supplement retirement income and will also explain how you can benefit from this trend.
Creating a retirement income from crowdfunding is a very real possibility that more investors are beginning to become aware of. As an investor it is likely that you already know of the extensive benefits of crowdfunding when it comes to growing your money. However, have you considered that crowdfunding could be a great way to supplement your income during your retirement.
It can be observed that the life expectancy for UK residents has risen over the past decade and it is predicted that this trend will continue. As the average life expectancy increases, so too does the amount of money that retirees need to sustain themselves once they stop working.
Figures released from Prudential, the insurance provider, suggest that, on average, a person who retires this year at the age of 65 can expect to live for an additional 20 years. Prudential also stated that the average expected annual income during retirement is £15,800 - meaning that a person would need a pension pot of £121,000 to see them through this time. This is, for many, a very large sum of money that actually equates to an annual income much below what many people would like to look forwards to. Therefore, finding ways to supplement this retirement income is essential for providing the quality of life that people expect in their later years.
Diversify Your Portfolio with Crowdfunding
As an investor, you have many options available to you as to how best to grow your money. This is applicable when considering short term gains as well as in preparation for the future. It is expected that peer-to-peer investments will become an integral part of some people’s retirement plans. Finding a variety of new business ventures to invest your money in now could yield extensive returns that can contribute towards your retirement income.
Even if you are several decades away from retirement, taking the time to contemplate this concept now could soon add up to large gains in the future. Doing so will also provide an additional layer of security to your financial plans for retirement, as depending solely on stocks, shares and bonds can, at times, be a precarious notion. By diversifying the assets for which a retirement income can sourced, there is a much lower risk of a loss of value.
As crowdfunding has become a much more widely acknowledged form of investing and borrowing, many more people have begun growing their money and borrowing in this way. Peer-to-peer platforms are seeing a gradual increase in users, many of which clearly have their long-term savings in mind. Regular people with little to no financial background now have the possibility to invest their surplus cash in exciting new business ventures. Traditionally those who invest their money into a pension plan have very little control over how the money is managed. The potential for crowdfunding to bring this control to the investors is massive and not to be overlooked.
If you are ready to consider investing your money into crowdfunding in order to improve your finances for retirement, then register as an investor with Go2 Business Loans today.
This is peer to peer lending and your investment is at risk. We encourage investors to diversify their portfolio and to review all investments to ensure that they meet with their own investment criteria.