Boost the State Pension deficit! How I’m preparing for my financial future
Boost the State Pension deficit! How I’m preparing for my financial future 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. 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. Markets around the world are reeling from the coronavirus pandemic…And with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains.But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be daunting prospect during such unprecedented times.Fortunately, The Motley Fool is here to help: our UK Chief Investment Officer and his analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global lock-down…You see, here at The Motley Fool we don’t believe “over-trading” is the right path to financial freedom in retirement; instead, we advocate buying and holding (for AT LEAST three to five years) 15 or more quality companies, with shareholder-focused management teams at the helm.That’s why we’re sharing the names of all five of these companies in a special investing report that you can download today for FREE. 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Simply click below to discover how you can take advantage of this. 5 Stocks For Trying To Build Wealth After 50 See all posts by Kirsteen Mackay Enter Your Email Address Image source: Getty Images Our 6 ‘Best Buys Now’ Shares The State Pension leaves a lot to be desired. Studies have shown that it’s barely enough for anyone to live on, and certainly not with any level of comfort. The trouble is, few people realise this until it’s too late. Thankfully, that need not be the case. By investing every month, I think it’s possible to boost the State Pension deficit and create a worry-free financial future.Take responsibilityMost people put some thought into what they want out of life. Whether it be a career path, family, car choice or hobbies. But very few of us daydream about our senior years. The next decade or two, maybe, but past that, not so much.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…Planning and imagining our retirement years seems so far in the distant future, that it can creep up with no forethought, and suddenly all those hopes and dreams are over with a turbulent bump. Decades ago, it might have been because we thought we’d be lucky to live past 60, but nowadays the average UK life expectancy is over 80 and one scientist thinks the first human to live to 200 has already been born. Now that’s a scary thought!We are responsible for our own financial futures. There’s no getting away from this. Unless using a professional to take care of things for us, we must take control to ensure our future lifestyles are as we desire. For most of us, the added cost of paying a professional is out of reach, so we must start planning for ourselves.Boost the State Pension and live in comfortThe State Pension deficit gap is the difference between the amount I’ll receive and the amount I’d like to live comfortably. At the moment, I’m projected to receive £175.20 a week. But I’d like to receive at least double that, so around £350 a week. That means the deficit for me is currently £761 per month or £9,141 per year. If I want to plan to have that for 20 years from age 68 to 88, then I need to find an additional £182,820.By committing to investing £250 a month for the next 27 years, at an effective annual interest rate of just 5.6%, I’d end up with £185,104. So, doubling my State Pension and beating the deficit is really not as difficult as it may seem. The higher the interest rate achieved, the more money invested, or the longer it can be left, all point to a much larger sum ultimately being achieved.Tax efficiencyInvesting within a Self-Invested Personal Pension (SIPP) or a Stocks and Shares ISA provides a tax-efficient way to protect investments. I think it’s a great way to take the plunge into protecting my financial future. It also allows me the fun of getting involved in stock market investing.