Crowdfunding in your fifties and sixties: lend your savings or raise funds

Crowdfunding, which the French call financement participatif, means pooling money from many individuals through an online platform to fund a project. It comes in three forms: donations, with or without a reward; lending, known as crowdlending, where you earn interest; and investment in shares or bonds. For someone in their fifties or sixties it can be a way to put savings to work, or a way to raise money for a business or a farm.

Savers approaching retirement are a large part of the audience, because they have built up capital and want extra income. Since November 2021 the rules have been harmonised across the EU by Regulation (EU) 2020/1503: platforms must be authorised as European crowdfunding service providers, supervised in France by the AMF (Autorité des marchés financiers, the French markets regulator), and they owe extra protection to inexperienced investors. If you live in France, whether you hold a French, British, Irish or American passport, these protections apply to you as a client of a French platform.

What can a senior saver expect to earn?

Advertised returns are high because the risk is high too. Lendopolis, which specialises in solar and wind farms, advertises 6 % to 8 % gross per year depending on the project, over two to seven years, with tickets from 50 euros. MiiMOSA, authorised by the AMF under number FP-2024-5, funds agriculture and food producers with expected interest of 4 % to 10 % depending on the theme, from 100 euros.

The flip side: losses and money you cannot touch

Every platform says so: the return is not guaranteed. WiSEED's risk warnings set out the possibility of losing part or all of your capital, of interest not being paid, of repayment being delayed by an extension, and of illiquidity, since its bonds generally cannot be sold before maturity. A property development that runs a year late pushes your repayment back by a year as well.

Safeguards for inexperienced investors

The European regulation requires an entry knowledge test and a simulation of your ability to bear losses. When a single investment exceeds 1,000 euros or 5 % of your net worth, the platform must warn you and obtain your explicit confirmation. Non-sophisticated investors also get a four-day reflection period during which they can withdraw an offer at no cost.

Example: Bernard, 61, with 6,000 euros to place

Bernard, a 61-year-old technician, has 60,000 euros of savings and wants to put 6,000 euros into crowdlending. He splits it into twelve tickets of 500 euros across two platforms. If ten projects pay 7 % a year for three years and two default with nothing recovered, he collects about 1,050 euros of gross interest but loses 1,000 euros of capital. The net gain is slim. Spreading the money limits the damage; it does not remove the risk.

How much of a late-career portfolio belongs here?

The platforms themselves advise investing only money you will not need in the short term. For a senior, that rules out your emergency fund, money set aside for adapting your home and any reserve for future care needs. A small slice of your financial assets, spread over many projects, is the usual rule of prudence.

In France, interest is normally taxed under the flat tax on investment income (prélèvement forfaitaire unique), with the option of using the progressive income tax scale instead. Expatriates should check where they are tax-resident: a French resident declares this income in France, while a non-resident may face different withholding and treaty rules. Money lent and not yet repaid forms part of your estate and passes to your heirs, so tell your family which platforms you use and how to reach your accounts.

When the senior is the one raising money

Crowdfunding also serves people over 50 who start or grow a business. Reward-based donation funds a product launch, a workshop or a farm: MiiMOSA offers this to farmers and food artisans, who give backers produce or stays in return. Crowdlending and bonds suit companies that are already profitable and want to top up their bank financing.

What crowdfunding will not pay for

French lending platforms finance businesses and projects, not private spending. A retiree looking to fund home improvements or a car will not find a crowdlending offer for that. The realistic options are an online collection among friends and family, a private loan documented with a written acknowledgement of debt (reconnaissance de dette), or a personal microloan.

Running a successful campaign after 60

Professional experience and a network are real assets. A campaign that works relies on a community rallied before launch, a realistic target, an honest video and attractive rewards. Budget for the platform's commission, which comes on top of the cost of making and posting the rewards.

Investing through a platform, step by step

1. Check the platform's authorisation on the AMF register or the European ESMA register.
2. Decide the maximum sum you can lose without harming your budget.
3. Answer the knowledge test and loss simulation honestly.
4. Start with small tickets spread across several projects and sectors.
5. Read each project's key information sheet: security, duration, promoter, track record.
6. Use the four-day reflection period to reread the offer before committing.
7. Track repayments and keep statements for your tax return.

Frequent mistakes made by older investors

Putting a large sum into one attractive project is the costliest error. Next come confusing the advertised return with the return actually achieved, forgetting that the money is locked in until maturity, and trusting unauthorised websites that promise guaranteed returns. An offer guaranteeing 12 % with no risk is almost always a scam. English speakers in France are a known target for cold calls in their own language, so be especially wary of a friendly compatriot selling an investment by phone.

Protecting yourself from fraud

Be suspicious of cold calls and social media advertising. Look up the blacklists published by the AMF and refuse any transfer to a foreign account requested by an adviser you do not know. An authorised platform will never ask you to pay a fee to release your gains.

If your bank has already said no

A project leader turned down by a bank should not see crowdfunding as a back door. Platforms select the files they publish and may demand security. A successful campaign does, however, strengthen your credibility with banks and with honour-loan networks.

Alternatives depending on your goal

• To invest savings: euro funds within an assurance-vie (French life insurance wrapper), regulated savings accounts, labelled solidarity funds.
• To finance a business: honour loans (prêt d'honneur), professional microcredit, a bank guarantee from a solidarity network.
• For a personal need: a personal loan, a declared private loan, supported microcredit.
• For a community project: an online collection, local grants, corporate sponsorship.

Crowdfunding questions from readers

Is there an upper age limit for investing? No. Any adult with legal capacity may invest. Someone under a French guardianship measure (tutelle or curatelle) must act with their legal representative.

Can I get my money back before the end date? Usually not. Crowdfunding securities are hard or impossible to sell, so you wait for the scheduled repayment.

Is interest paid monthly? It depends on the project: monthly, quarterly, yearly or all at the end. The project sheet tells you.

What happens if the platform goes bust? The loans are still owed by the project promoters. An authorised platform must have a business continuity plan so that repayments keep being managed.

Can I invest from the UK or the US? That depends on each platform's onboarding policy and on your tax residence. Many French platforms focus on EU residents; check the eligibility page before you open an account.