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No savings at 50? Worried about the State Pension? You could still retire with £225k with UK shares!

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Are you approaching retirement with little or nothing in the way of savings? I can assure you that you’re not alone. But you need to start taking charge of the situation, and fast. The State Pension pays out just over £9k a year and I personally don’t think I could survive on that alone. Fortunately though, you and I have the option to invest in UK shares to safeguard our lifestyles in old age.

It’s not just the paltry size of the State Pension that we need to be concerned about. Though the possible impact that Covid-19 will have on pension levels from now on provides plenty to fret over. It’s that the age at which we can claim the State Pension is getting higher and higher as well (last week the age at which most citizens can claim the benefit rose to 66).

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I don’t know about you, but I don’t fancy living on the breadline in my later years, or having to wait until I’m approaching my 70s until I can retire. This is why I’m buying UK shares in a Stocks and Shares ISA. The beauty of share investing is that even those with zero savings and a decade or so away from their planned retirement can expect to have built a handsome nest egg by the time they retire.

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Making money with UK shares

It’s not ideal to begin your investing journey if you’re 50 years of age and hoping to retire in your mid-to-late 60s. You’ll have to invest more in UK shares a month to save you from the low State Pension. And you’ll have to save like clockwork too.

However, those who are in a position to meet both of these requirements can make a big chunk of cash to retire on. It’s been proven that UK shares provide long-term investors — that is, those who buy shares with a view to clinging on to them for a decade or more — make an average annual return of between 8% and 10%.

So, say you’re 50 and are looking to retire at the current State Pension age of 66. If you can afford to invest £500 a month in UK shares you can, based on those proven rates of return, expect to have anywhere between £188,000 and £225,000 in your account.

Don’t rely on the State Pension!

I’m not going to write off the importance of the State Pension. For those with no savings or investments, it’s literally a life-saver. However, it’s critical that those who want to retire in comfort take charge of their own destiny.

As I’ve shown, buying UK shares is a great way to build a big money pile for retirement. And by using tax-efficient products like the Stocks and Shares ISA you can give your retirement nest egg an extra little boost. There’s plenty of help from experts like The Motley Fool to help you on your quest to retire in comfort too. So what are you waiting for?

5 Stocks For Trying To Build Wealth After 50

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Royston Wild has no position in any of the shares mentioned. 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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