I’ve just been over to the World Pension Plus (WPP) website and notice that they need just another 113 policy purchases to reach their stated target of 70,000 policies.

Now, before we all get too excited we should put this into perspective. WPP like many other Reverse Pension Plans have remained very flexible about just what the final cutoff number will be so whilst this looks promising nothing is guaranteed.

For those who may not be familiar with WPP they are offering a payout of $80,000 for a personal investment of $55. In essence you are receiving an early payment against a pension policy in your name. You gain by receiving a cash lump sum early and the provider, in this case WPP, gains by being able to cash the full value of the policy when it matures.

As people of all ages can purchase a policy (unless you are above retirement age already) then they can plan on regular inflows of cash as policies mature. I hesitate to call it a win-win as no RPP has yet delivered but in theory it is definitely possible.

As an added incentive if you buy more than five policies per individual you get a free matching one. So, if you invest in seven policies you’ll receive two more free giving an additional $160,000 at payout.

Now, as mentioned earlier no RPP has yet paid out so there is a risk and if you do an online search you’ll see that there are strong opinions on both sides of the argument. Don’t let that worry you. Have a look at the WPP offer for yourself and see it makes sense for your own circumstances. Just understand the risks involved and decide based on whether that is acceptable.