By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
ProbizbeaconProbizbeacon
  • Business
  • Investing
  • Money Management
  • Entrepreneur
  • Side Hustles
  • Banking
  • Mining
  • Retirement
Reading: If a 35-year-old put £500 a month into a Stocks and Shares ISA, here’s what they could have by retirement
Share
Notification
ProbizbeaconProbizbeacon
Search
  • Business
  • Investing
  • Money Management
  • Entrepreneur
  • Side Hustles
  • Banking
  • Mining
  • Retirement
© 2025 All Rights reserved | Powered by Probizbeacon
Probizbeacon > Retirement > If a 35-year-old put £500 a month into a Stocks and Shares ISA, here’s what they could have by retirement
Retirement

If a 35-year-old put £500 a month into a Stocks and Shares ISA, here’s what they could have by retirement

June 14, 2025 5 Min Read
Share
5 Min Read
This S&P 500 darling is down 25% in the past month! Here's what's going on
SHARE

Image source: Getty Images

Retirement can seem a long way off – but it gets closer every day. Like many people, I use a Stocks and Shares ISA to try and build some tax-free wealth that hopefully will come in handy by the time I retire.

But how lucrative can such an approach be?

I will Illustrate that by explaining some of the key factors that determine the answer: the timeframe, the amount invested and the return.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

A long timeframe is an investor’s friend

The longer someone makes regular investments, the better it will hopefully be for the ultimate wealth generation potential of their Stocks and Shares ISA.

A longer period means more monthly (or weekly) contributions – and more time for investments to prove their worth, hopefully.

A 35-year-old today has around 32 years of working life left before the planned future state retirement age of 67. Financially savvy investors may be able to retire much earlier, but in this example we will stick to 32 years.

Investing now to benefit in retirement

The amount invested also matters. In this example I use a monthly contribution of £500.

That is £6,000 a year – well below most people’s annual Stocks and Shares ISA contribution limit.

See also  £500 to invest in an ISA each month? Here's how to target a potential £60k+ second income!

Everyone’s financial situation is different. I think it is important to be realistic about how much one can afford to put into an ISA. That may not be the same amount each month for some people.

Finding shares to buy

The third variable is the compound annual growth rate (CAGR) of the portfolio value.

If that was 5%, at 67 the investor in this example would have an ISA valued at over £462,000. If the CAGR was 10%, today’s 35-year-old would be retiring with an ISA valued at over £1.2m.

In other words, the higher the CAGR, the bigger the long-term return will be.

The CAGR could come from dividends, share price growth or a combination of both. But it may be reduced by share price falls if shares are sold for less than they originally cost.

Another potential negative impact on the CAGR are the costs and fees of the ISA. Over decades those costs can eat up a lot of the value, so choosing the right Stocks and Shares ISA is important.

Setting realistic assumptions

A 10% CAGR may not sound very challenging, but in practice it is.

I do think it is possible, though, if someone is careful about stuffing their ISA only with high-quality companies bought at attractive share prices.

One share I think investors ought to consider at the moment is Greggs (LSE: GRG).

It already has a lot of momentum, having  gained 27% since last month. But it still looks undervalued to me from a long-term perspective.

A trading update this week painted a positive picture of current and expected trading. With a large and growing network of shops, sizeable regular customer base, unique items and strong brand, I think Greggs’ proven business model can go from strength to strength.

See also  Retiring At 62? How Much You May Get In Social Security

Managing inflation and recent wage cost increases could hurt profits, though, while a sunny summer may dampen consumer enthusiasm for heavy pastries.

But on balance I see the share as a potentially very tasty bargain, so I recently bought some.

You Might Also Like

Here’s how a Stocks & Shares ISA investor could target a £27k passive income!

7 top tips to consider for an £88k passive income!

5 Ways To Maximize Your 401(k) In 2025

Want To Retire Early? Check These 7 Things Right Now

How much would I need in an ISA for a £2k monthly passive income?

TAGGED:Retirement
Share This Article
Facebook Twitter Copy Link
Previous Article Tether to open-source Bitcoin Mining Operating System to empower small, mid-sized miners, says Paolo Ardoino Tether to open-source Bitcoin Mining Operating System to empower small, mid-sized miners, says Paolo Ardoino
Next Article High Paying, Six Figure Jobs For Recent Graduates: Report High Paying, Six Figure Jobs For Recent Graduates: Report
Leave a comment Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Stay Connected

235.3kFollowersLike
69.1kFollowersFollow
11.6kFollowersPin
56.4kFollowersFollow
136kSubscribersSubscribe
4.4kFollowersFollow
- Advertisement -
Ad imageAd image

Latest News

Why Your Business Feels Stuck — and How to Move It Forward
Why Your Business Feels Stuck — and How to Move It Forward
Entrepreneur July 17, 2025
Brand Bias For Visibility In Search & LLMs: A Conversation With Stephen Kenwright
Brand Bias For Visibility In Search & LLMs With Stephen Kenwright
Money Management July 17, 2025
Functional Mushroom Gummie Founder Struggles to Balance Stress and Growth
Functional Mushroom Gummie Founder Struggles to Balance Stress and Growth
Entrepreneur July 17, 2025
Tesla CEO Elon Musk.
Elon Musk In 2025: What To Know About The World’s Richest Person
Investing July 17, 2025
probizbeacon probizbeacon
probizbeacon probizbeacon

We are dedicated to providing accurate, timely, and in-depth coverage of financial trends, empowering professionals, entrepreneurs, and investors to make informed decisions..

Editor's Picks

How 4 Women Started Multimillion-Dollar Businesses After 40
ChatGPT Leads AI Search Race While Google & Others Slip, Data Shows
Best Banks For Early Direct Deposit In 2025
Bitcoin Mining Economics Weakened in February: JPMorgan

Follow Us on Socials

We use social media to react to breaking news, update supporters and share information

Facebook Twitter Telegram
  • About Us
  • Contact Us
  • Disclaimer
  • Privacy Policy
  • Terms of Service
Reading: If a 35-year-old put £500 a month into a Stocks and Shares ISA, here’s what they could have by retirement
Share
© 2025 All Rights reserved | Powered by Probizbeacon
Welcome Back!

Sign in to your account

Lost your password?