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No savings at 40? I’d drip feed £500 a month into UK shares in an ISA to retire in comfort

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It’s never too late to try and get rich with UK shares. The proven rates of return that stock investors can enjoy over the long term make this the case. They mean that one doesn’t have to spend a fortune investing for retirement, either.

Studies show that long-term UK share investors make an average yearly return of 8-10%. This means a 40 year-old who can spend £500 a month on building a shares portfolio can expect to have created a bulky retirement fund by the time they reached their State Pension age of 68. They’d have likely made anything between £592,716 and £841,532 by that time.

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It’s never been easier

The constant attacks on the State Pension, as the government struggles to balance the books while supporting an increasingly-elderly population, means it’s essential that people take steps to safeguard their financial futures, post-retirement.

Fortunately though, it’s never been easier to try and build a huge cash pile with UK shares. There’s a wealth of information out there from experts like The Motley Fool to help build a winning investment strategy. There’s also plenty of easy-to-use financial products like Stocks and Shares ISAs and SIPPs to help you on your way. These particular products stop the taxman taking a big bite out of investors’ returns too.

Investing despite the gloom

It’s clear 2021 might be another tough year for the global economy. And corporate profits could come under fresh strain as lockdowns re-emerge and travel bans kick in. But it doesn’t mean I’ll stop buying UK shares for my own ISA today. There are still plenty of great shares that’ll deliver big shareholder returns this year and beyond.

Let me give you an example. I’ve bought shares in Clipper Logistics and Tritax Big Box REIT. This is because the e-commerce phenomenon should keep growing at a rate of knots in 2021, whatever happens to the broader economy. These businesses provide logistics and warehousing services to help online retailers get their product to their customers.

More UK shares in my ISA

I also own Unilever in my Stocks and Shares ISA and reckon it’ll have another robust year in 2021. Sales of its food and personal care products remain strong, regardless of the state of the world economy. And its goods like Magnum ice cream and Dove soap that have the brand power to let this FTSE 100 stock effectively raise prices even during downturns like this.

I think CVS Group will have another strong 12 months too, as consumer spending in the animal healthcare market goes from strength to strength.

These are just some of the UK shares I think will perform brilliantly in 2021. And, as I said, The Motley Fool can help you find even more with its huge catalogue of exclusive and free reports.

A Top Share with Enormous Growth Potential

Savvy investors like you won’t want to miss out on this timely opportunity…

Here’s your chance to discover exactly what has got our Motley Fool UK analyst all fired up about this ‘pure-play’ online business (yes, despite the pandemic!).

Not only does this company enjoy a dominant market-leading position…

But its capital-light, highly scalable business model has previously helped it deliver consistently high sales, astounding near-70% margins, and rising shareholder returns … in fact, in 2019 it returned a whopping £150m+ to shareholders in dividends and buybacks!

And here’s the really exciting part…

While COVID-19 may have thrown the company a curveball, management have acted swiftly to ensure this business is as well placed as it can be to ride out the current period of uncertainty… in fact, our analyst believes it should come roaring back to life, just as soon as normal economic activity resumes.

That’s why we think now could be the perfect time for you to start building your own stake in this exceptional business – especially given the shares look to be trading on a fairly undemanding valuation for the year to March 2021.

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Royston Wild owns shares of Clipper Logistics, CVS Group, Tritax Big Box REIT, and Unilever. The Motley Fool UK has recommended Clipper Logistics, Tritax Big Box REIT, and Unilever. 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.

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