I’m STILL bullishly buying FTSE 100 shares to help me retire comfortably!

Building a portfolio of top FTSE 100 stocks could help me build a brilliant nestegg for when I hang up my proverbial work apron. Here’s why.

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

Storytelling image of a multiethnic senior couple in love - Elderly married couple dating outdoors, love emotions and feelings

Image source: Getty Images

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

2023 has (so far at least) been a year to forget for many FTSE 100 stocks. As I type, the UK’s leading share index is down around 2% since the start of January at 7,322 points.

But I’m not dismayed by the Footsie’s disappointing decline in the year to date. I invest for the long haul, and investing in UK stocks has long proved to be a great way to build wealth over time.

In fact I’ve used recent share price weakness to buy a string of UK blue-chip shares. This isn’t just because it might help to supercharge my eventual returns by buying low today and one day selling high.

It’s also because I believe I probably have to keep investing if I want to retire at a decent age.

Older workforce is growing

Latest statistics this week from The Centre for Ageing Better show how more and more older people are being forced to stay working to make ends meet. It said that “there are now almost one million more workers aged 65 and above in the UK labour market than there were at the beginning of the century.”

The charitable foundation says that more than one in nine (or 11.5%) are now working past their 65th birthday in the UK. This is more than double the one in 20 recorded at the turn of the millennium.

The current cost-of-living crisis has led to a jump in how many older people are still in the workforce. But don’t be fooled. the number has been steadily growing as the State Pension has failed to keep up with living and social care costs.

This trend looks set to continue too as the government struggles to fund an increasingly large elderly population.

Man with a plan

I believe that investing in FTSE 100 shares could help me avoid a similar fate. A quick look at the returns of Britan’s leading share index since the mid-1980s shows why continuing to invest here is a good idea.

According to IG Group, the FTSE delivered an annual return of 7.48% between 1984 and 2022. The past isn’t a reliable indicator of future returns. But if the index continues to deliver this return I would — if I invested £500 here each year — make a life-changing sum of £618,146 over 30 years.

As I said at the top, I hope to make even better returns than the broader market by buying quality stocks that are trading below value. And right now there are many to choose from as investors have panic-sold top companies during the course of the year.

Some of the FTSE index stocks I’ve added in 2023 include Diageo, Ashtead Group, Aviva and Legal & General. And I plan to continue carefully researching to find more bargains to buy. It could make the difference between me retiring comfortably at an age of my choosing, or struggling to make ends meet when (or if) I eventually stop working.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Royston Wild has positions in Ashtead Group Plc, Aviva Plc, Bunzl Plc, Diageo Plc, and Legal & General Group Plc. The Motley Fool UK has recommended Diageo Plc. 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.

More on Investing Articles

Portrait of elderly man wearing white denim shirt and glasses looking up with hand on chin. Thoughtful senior entrepreneur, studio shot against grey background.
Investing Articles

3 top FTSE 100 value shares I’d buy before August!

These FTSE 100 heavyweight shares have considerable long-term potential. And at current prices, I think they are too cheap to…

Read more »

Investing Articles

Here’s why I’m selling my Lloyds shares to double down on this FTSE 100 stock

Our writer digs into why he prefers HSBC over Lloyds shares right now, despite both performing really strongly in recent…

Read more »

Investing Articles

I’d invest £12,500 in this 1 stock to bag £1K of passive income!

Building a passive income stream through dividends is one of this writer’s biggest ambitions. Here’s how one stock could help.

Read more »

Investing Articles

3 cheap stocks to consider buying for the AI revolution

Investors looking for AI stocks to buy might be worried about high valuations amid current market euphoria, but these three…

Read more »

Young female business analyst looking at a graph chart while working from home
Investing Articles

Earnings up 20%! But this UK small-cap stock may just be getting started

Are we about to see enduring growth from this UK small-cap business with a rising stock price ahead over the…

Read more »

Investing Articles

1 FTSE 250 stock I’d give a wide berth… for now

One of the worst performers on the FTSE 250 index is a stock that Sumayya Mansoor has decided she won’t…

Read more »

Investing Articles

The FTSE 250 is brimming with potential, especially in stocks like this one

The main Footsie index gets all the attention but its little brother, the FTSE 250, is full of growth potential.…

Read more »

Frustrated young white male looking disconsolate while sat on his sofa holding a beer
Investing Articles

What on earth happened to the Premier African Minerals (LSE:PREM) share price?

The Premier African Minerals (LSE:PREM) share price is down a whopping 85% in the last year, so what happened? Gordon…

Read more »