Changes to the State Pension are coming down the line, so I think investors need to pay attention. The triple lock is set to be adjusted from 2030, raising a much bigger question about how much we should rely on the state to fund retirement.

For me, the answer is to build a second income stream that I can control myself.

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Building my own retirement income

When I think about building a portfolio that could potentially match or exceed the State Pension, there are two things I need to consider. How much can I build during the accumulation phase, and how much sustainable income that pot could provide in retirement.

To put that into perspective, investing £7,000 a year and achieving an average return of 8% over 20 years would result in a pot worth roughly £320,000.

Using the 4% withdrawal rule, that could provide around £12,800 a year in retirement — broadly equivalent to the current full State Pension.

But there’s an important catch. That £320,000 is a future figure, not £320,000 in today’s money. Inflation will erode its purchasing power over two decades, so I can’t simply look at the headline pot size and assume it will provide the same standard of living in retirement.

For me, that means the real challenge isn’t just building a big enough portfolio. It’s building one that can continue generating an income that keeps pace with the rising cost of living.

Dividend growth, not headline yield

One stock I think fits that description is HSBC (LSE: HSBA), a global bank with a strong Asian franchise.

Its forward dividend yield of around 3.9% is broadly in line with the FTSE 100 average, so it certainly isn’t the market’s most generous income stock. But HSBC has the scale and profitability to potentially grow that payout over time.

The first-half numbers were encouraging. Profit before tax increased 13% to $10.3bn, while return on tangible equity reached 19.1%. Loans also increased by $20bn, suggesting the bank is still finding opportunities to grow its lending business.

And importantly for me, the company’s dividend is clearly a priority. Its stated policy is to target a payout ratio of 50% of earnings per ordinary share. So as earnings grow, there should be scope for the dividend to grow too.

That commitment is reinforced by the reintroduction of share buybacks, showing that returning capital to shareholders remains an important part of HSBC’s strategy.

The risk

The obvious risk to this income strategy is that HSBC’s earnings don’t keep growing. The bank makes money from lending, so weaker loan demand, narrower margins or higher bad debts could all put pressure on profits.

That’s important because the 50% dividend payout ratio works both ways. If earnings rise, the dividend has scope to grow. But if profits fall, the amount available to shareholders could fall too.

That’s why I never look at headline yield when I consider an income stock. Instead, I ask myself what could put pressure on future earnings growth? In HSBC’s case, I think the bank has enough growth opportunities to potentially keep increasing profits and, in turn, the dividend.

For a long-term retirement portfolio, that’s the kind of income growth I’m looking for. But it’s not the only income stock on my radar…

Should you invest £5,000 in HSBC Holdings right now?

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.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if HSBC Holdings made the list?

Andrew Mackie owns shares in HSBC.