The State Pension is not enough! I’d invest £500 per month in an ISA to retire in comfort

first_img Enter Your Email Address The new State Pension pays just £175.20 a week. That works out at £9,110.40 a year, barely a third of the full-time national salary.While this is a valuable safety net, it will not give you a comfortable retirement. All it does is cover the basics. If you want to retire in comfort, you have to look beyond the State Pension. That means building savings in your own name.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…This will not simply give you a wealthier retirement. It also gives you the freedom to choose when you retire. This year, the State Pension age rises to 66 for both men and women. It will climb higher still as time passes.If you have saved enough money under your own steam, you can decide when you are ready to stop working. Not the politicians.The State Pension is only the startA great way of building extra wealth for your retirement is to invest in FTSE stocks. These give you capital growth from rising share prices, and income from dividends. In the longer run, history shows shares beat almost every other asset class.Some will be nervous because of recent stock market volatility. That is understandable. The global economy is only just emerging from lockdown. However, this could be an excellent time to buy shares to top up your State Pension, if you plan to hold them for the long run.The stock market crash in March means top FTSE 100 stocks are now trading at far lower valuations than at the start of the year. The index as a whole is down almost 20%. Many solid companies are going cheap.While the volatility may continue, that does not matter so much if you are investing for the long term. You can further reduce the risk by investing a regular monthly sum, rather than making a large one-off payment. That way you actually benefit from volatility. If share prices fall, your monthly payment will pick up more stock at the reduced price.If you could stretch to £500 a month, you would start building wealth quickly. If you invested that every month for 30 years and total returns averaged 7%, including dividends reinvested, you will have an incredible £606,438. That would be a nice supplement to your State Pension.Buy FTSE 100 shares todayThat kind of money could make a massive difference to your retirement. Even if you can only afford, say, £150 a month, you would have £151,610. Again, that would dramatically boost your State Pension income prospects.I would recommend investing in a spread of FTSE 100 shares inside a Stocks and Shares ISA. That way you can take all your returns free of income tax and capital gains tax. It is a hugely generous tax break.If you don’t know where to start, The Motley Fool UK site is full of tips and recommendations for top FTSE 100 stocks. Spread your money between different companies to reduce risks. While some may fall in the short term, in the longer run, building a portfolio of shares offers an attractive supplement to the State Pension.By investing monthly, and keeping your money invested for the long term, you can start looking forward to retirement, whatever happens to the State Pension. Our 6 ‘Best Buys Now’ Shares Simply click below to discover how you can take advantage of this. Markets around the world are reeling from the coronavirus pandemic…And with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains.But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be daunting prospect during such unprecedented times.Fortunately, The Motley Fool is here to help: our UK Chief Investment Officer and his analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global lock-down…You see, here at The Motley Fool we don’t believe “over-trading” is the right path to financial freedom in retirement; instead, we advocate buying and holding (for AT LEAST three to five years) 15 or more quality companies, with shareholder-focused management teams at the helm.That’s why we’re sharing the names of all five of these companies in a special investing report that you can download today for FREE. If you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio, and that you can consider building a position in all five right away. The State Pension is not enough! I’d invest £500 per month in an ISA to retire in comfort See all posts by Harvey Jones 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.center_img Image source: Getty Images Harvey Jones | Wednesday, 24th June, 2020 5 Stocks For Trying To Build Wealth After 50 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. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Click here to claim your free copy of this special investing report now!last_img read more