1 FTSE 100 passive income stock to help me retire early even without a state pension

Passive income could be the key to retiring early even with no state pension. Here’s one big-yielding FTSE 100 stock that might help me do that.

| More on:
Smart young brown businesswoman working from home on a laptop

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.

Work until I’m 71? With no passive income, I might have to. 

The International Longevity Centre thinks so. It just reported the retirement age for those born after 1970 will “definitely” need to go up to 71 years of age. 

Judging by the state of public finances, the goalposts could keep shifting. It might be later than 71. I might never receive a State Pension at all. 

These gloomy scenarios are one reason I work towards a passive income – a ‘hands-free’ source of cash to rely on as an income, pension or no pension. 

I’m still early in my journey, but watching my wealth grow through stocks has been encouraging. I bought Rolls-Royce shares last year and they’re up over three times in value. 

If I had to give an investing tip to my younger, more anxious self, there are three words I’d say. Oh, and I’d give him a bonus tip, too. 


Let’s say I was looking at finance stocks. London has a giant financial services sector with a 400-year history and bigger than the rest of Europe combined.

I might think M&G (LSE: MNG) was a good buy. This firm makes billions helping people invest their savings. Those big earnings pay for a market-leading 9% yield too.

But M&G isn’t a simple business. It manages a £200bn balance sheet. It has operations across the world. 

I might suffer from a touch of ‘analysis paralysis’. I’ve been guilty before of overthinking and not making a decision. 

In a few years time, I’d likely regret my inaction. At 4% inflation for 30 years, every £1,000 would have the buying power of just £294.

But even with a subpar investing return – say 6% yearly – my £1,000 would snowball into £5,743. 

Inflation would still eat into that, of course. But it’s at least one option to preserve and grow the money I have.

In summary, my advice to my former self would be “just get started”. I might even add a second tip to “not let perfect be the enemy of good”

There’s plenty of resources out there to help me start – The Motley Fool being one, of course. 

And on M&G, the dividend looks like one of the best of the high-yielding Footsie stocks. It might be my next buy. 

How I please

More broadly, it seems we are entering a new part of human history where people will be forced to work later than ever. 

When I’m 71, I don’t want to depend on the government for a retirement. And I doubt I’ll fancy catching the tube to work each morning.

Instead, I hope investing in top-notch stocks today – even if they’re not perfect – will hand me the financial buffer to spend my older days how I please.

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.

John Fieldsend has no position in any of the shares mentioned. The Motley Fool UK has recommended M&g 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

Businessman use electronic pen writing rising colorful graph from 2023 to 2024 year of business planning and stock investment growth concept.
Investing Articles

Could the FTSE 100 be set to soar in 2024?

The FTSE 100 keeps threatening to go off on a growth spree. And weak sentiment keeps holding it back. But…

Read more »

Investing Articles

Is this FTSE 100 stalwart the perfect buy for my Stocks and Shares ISA?

As Shell considers leaving London for a New York listing. Stephen Wright wonders whether there’s an undervalued opportunity for his…

Read more »

Mature Caucasian woman sat at a table with coffee and laptop while making notes on paper
Investing Articles

3 things I’d do now to start buying shares

Christopher Ruane explains three steps he'd take to start buying shares for the very first time, if he'd never invested…

Read more »

Investing Articles

Investing £300 a month in FTSE shares could bag me £1,046 monthly passive income

Sumayya Mansoor explains how she’s looking to create an additional income stream through dividend-paying FTSE stocks to build wealth.

Read more »

Investing Articles

£10K to invest? Here’s how I’d turn that into £4,404 annual passive income

This Fool explains how using a £10K lump sum can turn into a passive income stream worth thousands for her…

Read more »

Investing Articles

1 magnificent FTSE 100 stock investors should consider buying

This Fool explains why this FTSE 100 stock is one for investors to seriously consider with its amazing brand power…

Read more »

Rainbow foil balloon of the number two on pink background
Investing For Beginners

2 under-the-radar FTSE 100 stocks under £2

Jon Smith identifies two FTSE 100 stocks that he believes are getting a lack of attention from some investors but…

Read more »

Investing Articles

£8,000 in savings? I’d use it as a start to aim for £30k a year in passive income

Here's how regular investing in the UK stock market, over the long term, could help us build up some nice…

Read more »