![\"Senior](\"https:\/\/www.newsbeep.com\/ca\/wp-content\/uploads\/2025\/11\/RetiredCouple1.jpg\")
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Image source: Getty Images.<\/p>\n
Will the State Pension still be around by the time I retire? And if it is, how large will it be? And at what age will I be able to claim it?<\/p>\n
Like many Britons, these are questions I ask myself quite often. Right now, the \u2018Triple Lock\u2019 system provides pensioners with some peace of mind. This guarantees the State Pension will rise by the highest of average wage growth, consumer price inflation (CPI) or 2.5%.<\/p>\n
Yet State Pension rules are unlikely (in my opinion) to remain as generous decades from now, as the UK creaks under its enormous public debts and a tidal wave of new pensioners emerges. It\u2019s almost certain that the State Pension age will continue rising sharply.<\/p>\n
So I\u2019m taking steps to reduce my future reliance on government cheques. With a bit of luck, I\u2019ll be completely financially independent. Here\u2019s how I\u2019m planning to achieve it.<\/p>\n
Setting a target<\/p>\n
There are plenty of ways to target a healthy second income today. By far, the most appealing to me when I retire is through a steady stream of dividends<\/a> from share investing. Once my portfolio is set up, I can sit back and watch the passive income roll in.<\/p>\n Or that\u2019s the idea, at least. It\u2019s important to remember that dividends are never, ever guaranteed. But with a diversified portfolio spanning different industries and sectors, I can substantially improve my chances of a large and reliable dividend income.<\/p>\n I think a \u00a345,000 income is a good target to aim for. This is above the \u00a343,900 that Pensions UK says retirees currently need to live comfortably.<\/p>\n Building a portfolio<\/p>\n For a passive income of this size, I\u2019d need a portfolio of \u00a3643,000 That\u2019s assuming it was invested in stocks with an average dividend yield<\/a> of 7%.<\/p>\n That seems like a lot of money on paper. But based on an average annual return of 9%*, it\u2019s achievable after just over 26 years of investing \u00a3500 a month.<\/p>\n * Stock markets deliver an average long-term return of 8% to 10%.<\/p>\n Seventh heaven<\/p>\n Here\u2019s an example of what a 7%-yielding dividend portfolio could look like:<\/p>\n![\"Targeting](\"https:\/\/www.newsbeep.com\/ca\/wp-content\/uploads\/2025\/11\/Screenshot-2025-11-14-at-10-54-08-Compound-Interest-Calculator-Daily-Monthly-Yearly-Compounding.png\")
Source: thecalculatorsite.com<\/p>\n