![\"Content](\"https:\/\/www.newsbeep.com\/il\/wp-content\/uploads\/2025\/12\/Retirement-party.jpg\")
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Image source: Getty Images<\/p>\n
The State Pension currently pays just over \u00a312,547 a year. This is well short of the \u00a338,584 average UK salary based on the latest ONS data.<\/p>\n
That gap is exactly why I\u2019ve been thinking about whether an ISA could realistically bridge the difference and turn a basic retirement income into something far more comfortable.<\/p>\n
Should you buy Legal & General Group Plc shares today?<\/p>\n
Before you decide, please take a moment to review this report first. Despite ongoing uncertainties from Trump’s 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’s why this could be an ideal time to secure this valuable research \u2013 Mark’s analysts have scoured the markets to reveal 5 of his favourite long-term ‘Buys’. Please, don’t make any big decisions before seeing them.<\/p>\n
But what would it actually take to bridge that gap in practice?<\/p>\n
Asking the right question<\/p>\n
Most investors aiming to replace a full salary would likely focus on bridging the \u00a326,037 annual gap in retirement income.<\/p>\n
But the challenge isn\u2019t just reaching a target number \u2014 it\u2019s understanding both sides of the equation: accumulation and drawdown.<\/p>\n
Retirement isn\u2019t just about preserving a pot untouched. It\u2019s about drawing an income that keeps pace with rising costs, without running the portfolio down too quickly. That\u2019s why portfolio construction matters across an investor\u2019s lifetime.<\/p>\n
Crunching the numbers<\/p>\n
Based on a conservative 4% annual return in retirement and 3% inflation<\/a>, the model suggests the need for a portfolio of around \u00a3578,388 at age 65.<\/p>\n This would be sufficient to sustain withdrawals of \u00a326,037 a year through to age 90.<\/p>\n That\u2019s what the chart below is showing.<\/p>\n The blue line shows the portfolio value over time as withdrawals reduce the balance. In reality, outcomes would be more volatile than this smooth path suggests, as returns and inflation rarely move in straight lines.<\/p>\n What stands out is that even as withdrawals reduce the portfolio, it continues to generate returns throughout retirement. This is reflected in the gold line on the chart, which shows how ongoing compounding<\/a> keeps the curve from flattening too quickly. It\u2019s a reminder that maintaining a healthy portfolio in retirement matters just as much as during accumulation.<\/p>\n Chart generated by author<\/p>\n Sustainable dividend<\/p>\n![\"\"](\"https:\/\/www.newsbeep.com\/il\/wp-content\/uploads\/2026\/05\/Artboard-1-1200x1060.png\")
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