Anyone who relies solely on the State Pension to fund their retirement should reconsider. It’s just not enough to live on. Even if you get the maximum novel state pension, you’ll only get £12,547 this year.

According to the Retirement Living Standards study, this is below the level required for a basic “minimal” lifestyle. You’ll need a little more to enjoy a “moderate” retirement, let alone a comfortable one.

This table will be grim, but hopefully it will inspire some to start investing on their own.

Source: UK Finance

A great way to build retirement wealth is to invest through: Stocks and shares ISA. This will aid you leverage the power of the stock market. All share price growth and dividend income is completely tax-free.

Please note that tax treatment depends on each client’s individual situation and may change in the future. The content of this article is for informational purposes only. It is not intended to be and does not constitute any form of tax advice. Readers are responsible for conducting their own due diligence and obtaining professional advice before making any investment decisions.

Just look at how stocks and shares build wealth

So how much would you need in your ISA to generate a second income of £20,153 a year? I chose this amount because, when added to the State Pension, it would raise a single person’s income to £32,700, giving a ‘moderate’ pension.

The answer depends on the profit you generate from your portfolio:

• At a rate of return of 4% you would need to invest £503,825.
• At 5% the required amount drops to £403,060.
• At 6% this figure drops to £335,883.

These sums seem terrifyingly gigantic, but this is where the stock market comes in. Over the last decade, the average Stocks and Shares ISA has delivered a total return of 9.64% per annum, with reinvestment of dividends.

At this rate, if you invest £250 a month and boost this amount by 3% a year to keep up with inflation, after 30 years you will have £663,180, having blown past these totals.

Here’s why I like HSBC stock

One UK dividend stock I’m currently reviewing is HSBC Holdings (LSE: HSBA). Most of us know it as the main bank in the UK, but it generates two thirds of its profits in Asia, especially Hong Kong and China. This presents him with enormous opportunities as the Asia-Pacific region grows in wealth and power.

As a result, HSBC is already making huge profits – a staggering $32.3 billion in 2024. In 2025, this amount dropped to $29.9 billion, but mainly due to one-time impairment charges and company structuring costs. Underlying growth remains robust. The HSBC share price is up 60% in the last 12 months and a staggering 284% in five years.

In practice, investors do even better because they also receive dividends. The stock has recently gained about 5% annually. The total dividend reinvestment return would be approximately 315%.

After such a robust run, HSBC shares look a tad more steep and could be more volatile from here on out. And while exposure to China is invigorating, Beijing’s interference adds an additional layer of geopolitical risk. Moreover, if the global economy slows down, there could also be gains. However, every stock has both risks and rewards, which is why I think HSBC stock is worth considering today. That’s why I bought them in both May and June.

Should you invest £5,000 in HSBC Holdings now?

If investing expert Mark Rogers and his team have stock advice, it can pay to listen. After all, Twelfth Magpie’s flagship Share Advisor newsletter, which it has run for almost a decade, provides thousands of paying members with the best share recommendations from across the UK and US markets.

Mark believes there are 6 standout stocks that investors should consider buying right now. Want to see if HSBC Holdings is on the list?

Harvey Jones owns HSBC shares.