State Pension: I’d invest £500 per month in an ISA starting today to retire in comfort

first_img “This Stock Could Be Like Buying Amazon in 1997” Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! See all posts by Peter Stephens I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. The rising State Pension age means that it may be more difficult in the long run to retire in comfort. Furthermore, the cost of coronavirus could mean that the rate at which the State Pension rises in the coming years is less attractive than it has been in the past.As such, now could be the right time to start buying FTSE 100 shares after the index’s recent crash. They appear to offer long-term growth potential that could be further enhanced through investing regularly in a tax-efficient account such as a Stocks and Shares ISA.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…State Pension prospectsThe State Pension currently amounts to just £9,110 per year. That’s around a third of the average annual salary in the UK. This suggests that it is unlikely to provide a sufficient income to enjoy financial freedom in retirement.Furthermore, the age at which it starts being paid is due to rise to 68 within the next 30 years. And with the cost of coronavirus likely to mean eventual tax rises over the long run, it would be unsurprising for the speed at which it rises to slow as the government seeks to balance its books over the coming years.Therefore, a passive income other than the State Pension is likely to become increasingly required in older age.FTSE 100 investment prospectsInvesting in FTSE 100 shares today to generate a retirement nest egg in addition to the State Pension may seem highly unappealing to many people. After all, the index has recorded sharp declines over recent months. Although they have been followed by a successful rebound for many stocks, the high volatility of the stock market could dissuade many individuals from buying shares.However, by investing regularly in a Stocks and Shares ISA, you could obtain a surprisingly large retirement nest egg.For example, the FTSE 100 has recorded an 8% annual return since inception. Assuming the same rate of growth on a £500 monthly investment over a 30-year time period would produce a nest egg of £680,000. Using this capital to generate a passive income of 4% per year would produce an annual income of around £27,200. That’s almost three times the current State Pension, which suggests that it is a worthwhile move.Potential risksOf course, in the short run the index could experience a decline. Short-term risks such as a second wave of coronavirus could hurt investor sentiment. But it continues to offer a long-term solution to an unattractive State Pension that could become increasingly ineffective at providing a worthwhile income in older age. After all, the FTSE 100 has always recovered from its short-term falls to produce long-term growth.Therefore, now could be the right time to start investing regularly in shares. They could offer an improving retirement outlook for anyone with a long-term time horizon. State Pension: I’d invest £500 per month in an ISA starting today to retire in comfort Our 6 ‘Best Buys Now’ Shares Peter Stephens | Saturday, 13th June, 2020 Image source: Getty Images Simply click below to discover how you can take advantage of this. Enter Your Email Addresslast_img read more