Sunday, 1 November 2015

Enhance your retirement income

In India, retirees generally depend on the following sources of income:

1. Pension – (if you belong to public sector)
      2. Rental income
      3. Income from savings (traditional financial instruments like FD, etc.)
      4. Stock returns/ dividends

If we look at points 1 to 3 of the above – in the long run none of these asset classes would be sufficient to meet the expenses due to the inflation rate. Further, reduction of the rates by the Central Bank is increasing the woes – with banks reducing the interest rates on the financial instruments.

In case of stocks, while the rate of return is higher than the inflation rate, the volatility associated to the same deters many retail individuals to stay away from this asset class.

Considering the above, peer to peer lending (P2P lending) provides an interesting alternate for the retail investors to look at. The rate of interest offered underP2P lending is considerably higher than the traditional asset classes and hence takes care of the inflationary pressures and lets one meet the expenses.

When compared to the stock market, the returns are comparable (and in some cases higher in the short term); however, P2P lending provides an advantage of recurring monthly fixed cash inflow and fixed return. Furthermore, such returns and the duration can be chosen by the lender and can be diversified by investing in small lots across multiple borrowers. This cash inflow can be withdrawn for regular use or reinvested in a set of borrowers to enhance the return to be earned.

This being said, like stock markets, P2P lending has its set of risks; however, these are aptly mitigated by some of the P2P lending platforms like Rupaiya Exchange to ensure relatively safe and fixed returns to individuals.

Hence, individuals looking to increase their rate of returns and not curb expenses or down grade their lifestyles during their retirement years can log on to P2P lending platforms and invest their surplus cash wisely.  

@RupaiyaExchange is a virtual market place for Peer to Peer Lending.

Rohan Hazrati (@HazratiRohan) is the Founder of Rupaiya Exchange. He has worked across geographies and in his last assignment was the CFO and Managing Director of a multibillion dollar enterprise.
You can write to us ( visit the website ( or tweet us @RupaiyaExchange

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#rupaiyaexchange #p2p #p2plending #loans #borrow #alternative financing #retirement #fintech

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