Two timely products for over 55s seeking greater control of their finances amid rising uncertainty

Pays fixed rates of over 4% direct to the customer’s bank account, monthly or annually

Basset & Gold, the innovative finance company which gives everyday investors access to the high yields of marketplace lending, today officially launches two pensioner bonds. These fixed income products offer British over 55s a new way to take greater control of their finances at a time of increasing financial uncertainty for senior citizens.

The Basset & Gold Pensioner Bond is offered exclusively to investors who are aged 55 or over and provides an ongoing and reliable cash flow in the form of a fixed monthly income. Investors can choose the Monthly Income Pensioner Bond that pays 4.24% p.a. in equal monthly payments directly to their bank account – a strong advantage for customers who need a regular income from their investment without eating into their capital. Alternatively, they can invest in the Compounding Pensioner Bond that pays 4.32% p.a. once a year – ideal for those who do not need a regular income stream from their investment. In response to customer feedback, the Pensioner Bond also includes a terminal illness clause that allows the investor to get easy access to their money in unexpected circumstances.

The product is timely given the increasing financial uncertainty pensioners face after a long period of relative stability. The UK’s retired population has been able to depend on the triple lock guarantee since 2010 but the Prime Minister has in recent interviews refused to guarantee the third element of the lock. This is reflective of wider demographic and societal trends; the average life expectancy for both men and women in the UK has experienced an upwards trend over the last 30 years, with 55% of all deaths in England occurred to people over the age of 80.¹ Meanwhile, the total Government spending on pensioners was £67 billion in 2014-2015 and is projected to fall to £62 billion by 2020.² With more people living longer than ever before, and the prospect of the average pension falling in value over time, Basset & Gold believes that the retired population will benefit from a more proactive approach to maximising the value of their assets, and has designed this product with them in mind.

Basset & Gold is able to offer these fixed returns because of the market it invests into and its unique model. It is best known for its Fixed Monthly Income Bonds, but all of its products are designed to allow individual investors in the UK to take advantage of the growth in marketplace lending, with diversified investments across a wide portfolio mix. Marketplace lending has an annual growth rate of 51% and the global Marketplace lending is expected to reach $290 billion by 2020³. Basset & Gold makes its profits from any excess returns it can achieve over and above the fixed rate it generates for customers. This incentivises the company in a way that is more aligned with a customer’s goals than a fee-based model, which reflects Basset & Gold’s dedication to disrupting the financial services market to create greater transparency and fairness.

Daniel Smith, Head of Relationship Management at Basset & Gold, said: “We feel strongly that pensioners and those nearing retirement should not have to suffer stress and insecurity about their future income. Basset & Gold has created two products that will allow customers over 55 to take

• The Office Of Public Health England, ‘Recent Trends in Life Expectancy at Older Ages’ (2014)

• Pensions Policy Institute, ‘Pension Facts’ (October 2016)

• Morgan Stanley. Blue Paper: Blue Paper, ‘Global Marketplace Lending: Disruptive Innovation in Financials’ (May 19, 2015)

greater control over their own income with a product that generates a predictable and ongoing cash flow from their savings that is paid directly into their bank accounts. We believe that receiving a good pension income should not be a luxury and we hope that these products will put such an income within the reach of more people.”