{"id":737861,"date":"2026-06-15T08:09:22","date_gmt":"2026-06-15T08:09:22","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/737861\/"},"modified":"2026-06-15T08:09:22","modified_gmt":"2026-06-15T08:09:22","slug":"state-pension-of-12548-not-enough-how-much-would-be-needed-in-an-isa-to-match-it","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/737861\/","title":{"rendered":"State Pension of \u00a312,548 not enough? How much would be needed in an ISA to match it?"},"content":{"rendered":"

\"ISA<\/p>\n

Image source: Getty Images<\/p>\n

Under current legislation, the State Pension is increased each year by the higher of 2.5%, inflation, or earnings growth. Although this \u2018triple lock\u2019 has helped ensure that pensioners\u2019 incomes have beaten prices, the current full entitlement of \u00a312,548 will only provide for a basic standard of living.<\/p>\n

That\u2019s why many people have a Stocks and Shares ISA. They are hoping these will produce sufficient income to make a big difference later in life. But how much would be needed to produce the same amount as the current State Pension? Let\u2019s find out.<\/p>\n

Should you buy Imperial Brands Plc shares today?\t<\/p>\n

Before you decide, please take a moment to review this report first. Despite ongoing uncertainties from US tariffs to global conflicts, Mark Rogers and his team believe many UK shares still trade at substantial discounts, offering savvy investors plenty of potential opportunities to learn about.<\/p>\n

That\u2019s why this could be an ideal time to secure this valuable research \u2013 Mark\u2019s analysts have scoured the markets to reveal 5 of his favourite long-term \u2018Buys\u2019. Please, don\u2019t make any big decisions before seeing them.<\/p>\n

A bit of number crunching<\/p>\n

The top 10 FTSE 100 stocks are currently (14 June) yielding 6.6%<\/a>.<\/p>\n

A portfolio of these worth \u00a3190,121 would produce dividend income of \u00a312,548 a year, the same as the State Pension.<\/p>\n

But dividend shares can also serve another useful purpose. Instead of spending the payouts received, some investors prefer to use the cash to buy more shares. Why?<\/p>\n

They do this because the dividends are a substitute for having to find new money. For example, someone starting with \u00a310,000 could earn \u00a3660 in dividends in year one. Use this money to buy more shares<\/a> and the cash received in year two would increase to \u00a3704. And so on.<\/p>\n

After 25 years, an ISA would be worth \u00a349,423. That\u2019s nearly five times the initial lump sum.<\/p>\n

Going up in smoke?<\/p>\n

One of the FTSE 100\u2019s top 10 yielders is Imperial Brands (LSE:IMB<\/a>), the tobacco group. It\u2019s currently returning 5.9%. Despite its above-average dividend, I recognize that some don\u2019t like the idea of investing in the industry on ethical grounds.<\/p>\n

However, as the chart below shows, it has a good track record of increasing its payout. Over the past 10 years or so, its yield has been consistently above 5%. Incidentally, don\u2019t be alarmed by the drop in 2026. It pays quarterly dividends and we are only half-way through the group\u2019s current financial year.<\/p>\n

\"\"Source: company website<\/p>\n

A useful calculator on the company\u2019s website shows that someone who first took a stake in June 2001 will have received dividends of \u00a326.53 a share since then. Amazingly, this is equivalent to 96.09% of the amount invested.<\/p>\n

In a year\u2019s time, it\u2019s probable (there can never be any guarantees when it comes to shareholder returns) that they will have received all of their money back from dividends alone.<\/p>\n

My view<\/p>\n

To be honest, despite the impressive dividend history of Imperial Brands, I don\u2019t want to invest. Due to health concerns, the group is transitioning away from cheap-to-make cigarettes that have, over the years, proven to be highly cash generative.<\/p>\n

Now, as smoking habits change, it\u2019s switching to alternatives like vapes and heated tobacco. However, these are also coming under scrutiny from those concerned about the long-term health impacts.<\/p>\n

From a financial perspective, non-combustible products have lower margins and require more up-front investment. This could lead to further borrowing, which is already on the high side. I may be mistaken, but I can\u2019t see the group\u2019s new generation of products being as lucrative as traditional cigarettes.<\/p>\n

It might be a few years away yet but, ultimately, I suspect Imperial Brands\u2019 dividend will come under pressure. On this basis, I believe there are more attractive long-term passive income opportunities to consider elsewhere.<\/p>\n

Should you invest \u00a35,000 in Imperial Brands Plc right now?<\/p>\n

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.<\/p>\n

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Imperial Brands Plc made the list?<\/p>\n

James Beard does not hold any positions in the companies mentioned.<\/p>\n","protected":false},"excerpt":{"rendered":"Image source: Getty Images Under current legislation, the State Pension is increased each year by the higher of…\n","protected":false},"author":2,"featured_media":737862,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[45,49,48,133,131,132],"class_list":["post-737861","post","type-post","status-publish","format-standard","has-post-thumbnail","category-personal-finance","tag-business","tag-ca","tag-canada","tag-finance","tag-personal-finance","tag-personalfinance"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/737861","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=737861"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/737861\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/737862"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=737861"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=737861"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=737861"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}