If you’re a British investor in your 40s or 50s looking for stocks to buy for retirement, 2026 looks bumpy. Trump’s tariffs could slap 10%-25% on UK exports, inflation is stuck above 3%, and Middle East unrest continues to impact energy prices.
But here’s the good news: analysts love UK stocks right now. Currently, around 63% of FTSE 350 names carry Buy ratings, the highest in 12 years. Smart money’s rotating into defensive, high-yield picks that generate income through thick and thin.
Tariffs hurt cyclical exporters like miners and manufacturers but barely impact utilities, financials and healthcare. They’re typically domestic-focused with inflation hedges or demographic benefits.
Further rate cuts could boost margins for insurers, while net-zero spending is fuelling grid upgrades. For retirement portfolios, this means reliable dividends you can reinvest — rather than chasing speculative growth.
With that in mind, I’ve identified three tariff-resistant stocks that are worth considering for an ISA: SSE, GSK, and Phoenix Group (LSE: PHNX). Offering yields between 4% and 9%, they’re perfect for compounding over 10-20 years without losing sleep.
Let’s take a closer look at why.
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Targeting sustainable income
As a utility, SSE benefits from regulated energy prices, giving it both defensive qualities and stable earnings. Although the yield’s lower than average, it’s well-covered by earnings, ensuring payments are reliable.
GSK has a solid drug pipeline that provides earnings visibility and defence against the dreaded patent cliff. Dividends took a mild cut during the 2022 economic downturn, but historically have exhibited decent growth and reliability.
Phoenix Group stands out as a retirement investor’s dream. It offers one of the highest yields on the FTSE 100 at 7.9%, backed by a 10-year history of uninteruptted dividend growth. The divdiend grew 11.6% last year under a progressive policy targeting £10bn+ shareholder distributions through 2027 — perfect for ISA compounding amid tariffs and volatility.
Operational cash generation ensures payments are well-covered, with predictable cash flow from ‘heritage’ books. These old pension plans require minimal new business risk but help ensure steady revenue. It’s an attractive business model for investors targeting predictable income in retirement.
But with interest rates falling, the company could take a hit. Prolonged low rates could squeeze new annuity margins, threatening profitablity — and possibly the share price. In some cases, these effects are short-lived but it’s always worth keeping a close eye on developments.
The bottom line
When investing for retirement, long-term sustainability is key. Manageable debt, a long track record of payments and clear earnings visbility help to reduce the chance of a dividend cut.
When the global economy’s looking fragile (as it is now), this is doubly important. Highly defensive stocks may not offer the highest yields but the stability they provide can equate to greater returns in the long run.
For passive investors who don’t have the time to actively monitor their portfolio, companies with proven track records make a world of difference. But conditions can change rapidly – particularly in the current environment – so it pays to keep abreast of developments.
GSK, SSE, Phoenix Group are appealing options to consider, but they’re just three among the many opportunities I’ve identified on the UK market this month.
