Worried about the State Pension? I’d buy UK shares in an ISA to retire in comfort

first_img Image source: Getty Images Peter Stephens | Sunday, 1st November, 2020 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. 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. “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. Simply click below to discover how you can take advantage of this. Worried about the State Pension? I’d buy UK shares in an ISA to retire in comfort Enter Your Email Address Our 6 ‘Best Buys Now’ Shares Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Investing in UK shares after the stock market crash may not seem to be a sound means of building a retirement nest egg. However, indexes such as the FTSE 100 and FTSE 250 have long track records of growth that have seen them produce annualised total returns in the high-single digits.As such, they could provide a sound means of countering a disappointing State Pension. It amounts to just £9,110 per year. Therefore, a supplementary passive income provided by an ISA portfolio of British shares could provide greater financial freedom for retirees.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…Buying UK shares after a stock market crashThe recent stock market crash has highlighted the potential for volatile performance from UK shares. However, bear markets, corrections and downturns can occur at any time. Indeed, any company can produce a disappointing performance that causes a fall in its stock price. In other words, the stock market is full of unknowns that can lead to disappointing returns and paper losses for investors over the short run.However, in the long run, indexes such as the FTSE 100 and FTSE 250 have excellent track records of growth. They have historically outperformed other mainstream assets such as cash and bonds. Meanwhile, building a diverse portfolio of stocks is more accessible than investing in buy-to-let property. Therefore, long-term investors may be able to build a portfolio of stocks that produces a surprisingly large nest egg by the time retirement comes along. From this, a generous passive income may be drawn through a diverse range of UK shares.Building an ISA portfolio to supplement the State PensionAn ISA portfolio of UK shares can help retirees to enjoy greater financial comfort. After all, the State Pension is unlikely to provide a sufficient income for most people. It currently amounts to around a third of the average UK salary. So it’s likely to require a supplementary passive income.A Stocks and Shares ISA offers a convenient and cost-effective means of accessing the growth potential of the FTSE 100 and FTSE 250. An ISA can be set up online in a matter of minutes. Meanwhile, the cost of administering it is extremely low, in many cases. Moreover, retirees can withdraw as much money as they like from an ISA at any time without penalty or tax payments. This makes them a flexible means to supplement the State Pension.Clearly, buying UK shares means higher risks than other assets such as cash and bonds. However, the long-term growth prospects of a diverse ISA portfolio of stocks could make them relatively attractive on a risk/reward basis. As such, now could be the right time for an investor to consider purchasing FTSE 100 and FTSE 250 shares. Certainly while they trade at lower prices following the stock market crash. See all posts by Peter Stephenslast_img

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