Hoping the State Pension will support you in retirement is a recipe for disaster. I’m taking steps to protect myself from pensioner poverty by buying UK shares in a Stocks and Shares ISA. I think it’s a strategy all Britons should be adopting today.
The number of pensioners living in poverty in Britain has exploded in recent years. Annual rises in the State Pension have failed to keep up with the cost of living, let alone the ballooning cost of social care. Fresh research published last week reveals the huge financial shortfall that today’s pensioners face between the state benefit and standard living costs.
Don’t just rely on the State Pension!
Things promise to be even more difficult for tomorrow’s pensioners too. Governments have been struggling to support Britain’s ageing population for years now. The age at which you and I can claim the State Pension continues to get further and further away. And things look even bleaker following the outbreak of Covid-19 and its severe impact on the public purse.
This is why I’m not leaving anything to chance. I’m taking control and building a portfolio of UK shares in my Stocks and Shares ISA. This way I can create a tidy retirement pot to help me enjoy a comfortable retirement once I hang up my workgloves. And I don’t have to pay a penny to the taxman either.
3 UK shares that could help you retire comfortably
Here’s a few UK shares I’m thinking of snapping up today to help me retire in comfort. I believe they could provide me with spectacular shareholder returns over the next couple of decades, at least:
- Buying healthcare shares is always a good idea. We will always need pharmaceuticals and access to medical care. Soaring populations and increasing healthcare spending in emerging markets means UK shares with broad geographical footprints should perform the strongest. This is why I’m thinking of buying into AstraZeneca. This FTSE 100 stock has invested heavily to capitalise on developing regions and it’s already paying off. Sales of new medicines in emerging markets soared 71% between January and June.
- I already have access to healthcare through my shares in veterinary care provider CVS Group. But I’m considering buying shares in manufacturers of drugs for animals too. Why? The veterinary medicines market is the fastest-growing segment of the entire healthcare sector. Grand View Research reckons it will rise at an annualised rate of 6.2% through to 2026. I’m considering buying into Dechra Pharmaceuticals to ride this trend.
- Buying shares in green energy providers is another great idea as demand for low-carbon sources heats up. The International Energy body reckons that renewables will enjoy the fastest growth in the electricity sector and provide 30% of power demand in 2023, up 6% in six years. I think UK share Greencoat UK Wind could provide spectacular shareholder returns in this climate.
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Royston Wild owns shares of CVS Group. The Motley Fool UK has recommended Greencoat UK Wind. 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.