The Motley Fool

No savings at 50? I’d buy these 2 FTSE 100 stocks to retire on a rising passive income

Image source: Getty Images

If you haven’t built up much in the way retirement savings at age 50, you need to start playing catch-up today. I think the best way of doing this is to invest in equities using your annual Stocks and Shares ISA allowance.

This allows you to invest anything up to £20k in the stock market before 5 April, with all returns free of tax. I would start by investing in a balanced portfolio of FTSE 100 shares to generate growth and income. These two could be a good place to start.

5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!

According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…

And if you click here we’ll show you something that could be key to unlocking 5G’s full potential...


Pharmaceutical company GlaxoSmithKline (LSE: GSK) is a giant of a stock, with a market-cap of more than £92bn. Its three global businesses focus on pharmaceuticals, vaccines and consumer healthcare and spends around £4bn a year researching and developing a pipeline of new products, to keep the cash and profits flowing.

The Glaxo share price is now in revival mode, as I predicted this time last year, when I hailed it the ideal buy for uncertain times. It’s up around 25% since then.

Glaxo’s stock offers a solid dividend yield of around 4.3% a year, so the total return over the last year was closer to 30%. Despite that, it still looks a relative bargain, as its shares trade at around 15.3 times earnings, below the FTSE 100 average of 18.03 times.

Glaxo has frozen its dividend at around 80p in recent years, to pump more of its profits into R&D. Investors are now waiting to see whether that investment is going to pay off. The share price may not rise another 25% this year, but if investing for retirement, you have to look beyond that.

At age 50, you could hold this stock for another 30 years or so, and over such a lenghty period I believe GlaxoSmithKline will prove a rewarding investment for both growth and income.

Legal & General Group

Here’s another renowned FTSE 100 blue-chip stock I’d consider to generate a passive income. Asset manager and insurer Legal & General Group (LSE: LGEN) offers an even more generous yield than Glaxo, with a forecast income of 6.2% in the year ahead.

This is far above the FTSE 100 average of 4.34% and, crucially, it also looks sustainable, as it’s covered 1.8 times by company earnings.

The last 12 months have also been good for the Legal & General share price, which is up more than 20%. It’s enjoyed growth from the bulk annuity market, insuring risk on company pension schemes to ease the burden on employers.

The £18.62bn group has an incredible £1.2trn of assets under management, making it one of Europe’s biggest fund managers, yet trades at a bargain price of just 9.4 times earnings. You can buy the L&G share price for just half the FTSE 100’s valuation.

If equities have a bumpy year I’d seize the opportunity to load up on more L&G stock at the lower price, as part of your quest to build a portfolio of shares to deliver a rising passive income when you retire.

“This Stock Could Be Like Buying Amazon in 1997”

I'm sure you'll agree that's quite the statement from Motley Fool Co-Founder Tom Gardner.

But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.

What's more, we firmly believe there's still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.

And right now, we're giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool.

Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge!

Harvey Jones has no position in any of the shares mentioned. The Motley Fool UK owns shares of and has recommended GlaxoSmithKline. 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.

Our 6 'Best Buys Now' Shares

Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.

So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we're offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our 'no quibbles' 30-day subscription fee refund guarantee.

Simply click below to discover how you can take advantage of this.