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Forget the State Pension! I think these 2 FTSE 100 income shares can help you retire early

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Retirement saving and pension planning
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While many people may be relying on the State Pension to provide them with financial freedom in older age, the reality is that it may prove to be insufficient to even pay for life’s necessities. It amounts to just £8,767 per year, with the age at which it starts being paid set to increase to 68 over the next 20 years.

By contrast, the FTSE 100 could offer a means of building a retirement portfolio that provides a more reasonable passive income. It could top-up the State Pension to a level that offers a comfortable retirement lifestyle for many people.

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With that in mind, here are two FTSE 100 income shares that appear to offer dividend growth, as well as low valuations. As such, they could be worth buying today for the long term.

SSE

Utility company SSE (LSE: SSE) has experienced a period of significant uncertainty over recent quarters. It is attempting to pivot towards regulated electricity networks and renewable energy in order to capitalise on a growing trend towards clean energy. However, its recent trading update showed that its operating conditions have remained uncertain, while it has experienced difficulties in disposing of its energy services division.

Now though, the company has finally agreed to sell its energy services division to Ovo Energy. Meanwhile, its long-term financial performance could benefit from the UK’s focus on becoming a carbon-neutral economy over the next 30 years. This may support dividend growth over a long time period.

In the meantime, SSE offers a dividend yield of 6.5%. It expects to raise dividends by at least as much as inflation over the next few years, which could increase its income investing appeal. Although its operating environment may continue to be uncertain over the near term, the company’s long-term dividend prospects could prove to be attractive, I think.

Legal & General

Financial services business Legal & General (LSE: LGEN) appears to have an improving outlook too. The company is forecast to post a rise in its bottom line of 7% in the current year, while its recent results showed that it is making progress with the delivery of its strategy.

For example, it is disposing of non-core assets in order to focus on areas where it feels the risk/reward opportunities are most favourable. This could catalyse its growth prospects, while its diverse range of businesses may provide a variety of opportunities to increase dividends over the long run.

With a yield of 7.5% from a payout that is covered 1.8 times by net profit, Legal & General’s income prospects appear to be highly favourable. It may struggle to deliver share price growth in the short run due to wider economic fears among investors, but that is an issue for many UK share at present. In respect of its long-term view, it could generate high total returns that provide a boost to your retirement prospects when you eventually come to take off your work boots.

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Peter Stephens owns shares of Legal & General Group and SSE. The Motley Fool UK has no position in any of the shares mentioned. 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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