I am a gigantic fan of super-performance FTSE 100 Actions. Now M & G (LSE: MNG) stands out with a dividend result of 8.96%.

I assume my participation in the estate manager and I hope that I will generate thousands of passive income when I retire. Now I wonder how far I can take it.

Today, a recent state pension pays a maximum of £ 11,973 a year. Can I double this, only by investing in M&G? After all, it is the highest pattern on FTSE 100.

However, I would still have to buy many of his actions.

Hero of income

For the whole year 2024 M & G paid a total dividend for 20.1 pence. Markets expect that this year it will escalate to 20.6 pence, which is a tiny escalate by almost 2.5%.

How many shares would I have to buy today to generate £ 11,973 in 2025? Answer: 58 121. Today, M&G shares trade 224.8 pence. So these actions would cost me to touch 130,656 pounds.

This is obviously far beyond my 20,000 pounds of ISA shares and shares. Not to mention my means.

In time, this can be achieved, but in practice I would be crazy to put all my money in one supply. Too much risk.

While the price of M&G shares increased by 12% in one year and 60% in five years, it was bumpy along the way.

Financing usually goes beyond the listed variability front line, which can reach customer revenues and the value of managed net assets.

Huge payments of shareholders

As an elderly school lively manager, the M&G fund was also squeezed by the escalate in stock exchange funds (ETFS). In the era of passive indexation, he must constantly justify his fees.

The management board is investigating recent areas of revenue, from volumetric pensions to financial advice, but there is no guarantee that it will pay off.

I still think that fantastic dividend reserves should be taken into account. By investing each shareholder’s payment, it is possible to build a decent participation in time. Simply not 130 656 £.

However, investing in the diverse spread of FTSE 100 dividends, it is possible to build much more while reducing the risk.

Suppose the investor created a balance portfolio, reaching 5% a year. At such a pace, a portfolio worth 239 460 GBP would provide the same income level as a full recent pension.

Spread it

In time, the income will probably escalate. And drawing is not associated with touching capital, which can also grow – or fall, is a stock exchange for you.

Personally, I intend to generate a larger portfolio. And someone who invests 300 pounds a month and generates a total return of 7% per year, approximately according to the long -term average FTSE 100, can accumulate 363 863 GBP in 30 years. With a 5% profit would bring an income of £ 18,193 a year. It’s more similar.

It is assumed that all dividends are invested again and charged only as a second retirement income.

State pension is a solid base, but it is not enough to live comfortably. Building a portfolio of high -performance FTSE 100 shares, such as M&G, can facilitate transform the pension for the better. However, always diversify. There are many more shares of the highest income, some with forceful growth prospects.