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No savings at 40? I’d buy these 2 investment funds to double my State Pension

If you haven’t seriously started saving for retirement by age 40, that’s a blow, but it’s not the end of the world. There’s still time to build a big enough nest egg to avoid total reliance on the State Pension, just don’t leave it any longer.

My tip would be to start investing tax-free through a Stocks and Shares ISA allowance. While stock markets can be volatile in the short term, I’d tip equities to beat almost every other form of investment in the longer run, making them the ideal way to build retirement wealth.

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Investment trusts are an underrated way to tap into this growth, as they regularly outperform rival fund types. These two global trusts could help you towards a target of doubling the income you get from the State Pension.

F&C Investment Trust

F&C Investment Trust (LSE: FCIT) invests in a spread of global stocks, giving you an instant, internationally-diversified portfolio of publicly-listed equities, unlisted stocks and private equity. Launched in 1868, this is the world’s first collective investment vehicle with a tremendous pedigree.

Despite its long history, the £4.5bn fund remains sprightly today, its share price rising a bumper 99% in the last five years, easily beating its benchmark FTSE All-World index.

It gives you exposure to a spread of globally-renowned stocks, including US tech giants Amazon, Microsoft, Google-owner Alphabet, Facebook and Apple, as well as Visa, MasterCard, BP, Unilever and AstraZeneca. In total, it holds 450 companies, giving you a cushion if some of them underperform.

F&C currently yields around 1.5% but has a proud record of increasing its dividend payout ahead of inflation, boosting its value in real terms.

I’ve been an investment journalist for around 25 years, and F&C has been there throughout, doing what it does best… making investors richer. I reckon it should continue to do that over the next 25 years, taking you into retirement and beyond.

JP Morgan Emerging Markets Investment Trust

You could supplement it with a fund that zones in on the faster growth opportunities available from emerging markets. JP Morgan Emerging Markets Investment Trust (LSE: JMG) has also thumped its benchmark index, its share price climbing 91% over the last five years. If you had invested £10,000 in this 10 years ago, you’d have £24,145 today.

The trust contains big-name emerging market companies such as Taiwan Semiconductor, Chinese giants Tencent and Alibaba, and Tata Consultancy Services, giving you exposure to companies you might probably never buy as individual stocks.

A third of the fund is invested in China, which makes recent performance even more impressive, given the trade war with the US. It also gives you exposure to India, Taiwan, South Africa, Brazil and other emerging stars. The current yield is 1.32% but, again, you can expect dividend payouts to steadily increase over the years.

Whatever your age, these two trusts could help you build a passive income in retirement to supplement the State Pension, which isn’t enough on its own.

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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. Harvey Jones has no position in any of the shares mentioned. The Motley Fool UK owns shares of and has recommended Alphabet (A shares), Amazon, Apple, Mastercard, Microsoft, Unilever, and Visa. The Motley Fool UK has recommended AstraZeneca and recommends the following options: long January 2021 $85 calls on Microsoft and short January 2021 $115 calls on Microsoft. 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.