Building passive income from the portfolio FTSE 100 In my opinion, shares are a brilliant way to supplement the state pension in retirement.

At the end of the tax year (April 5), there is a perfect time to get stuck, maximizing this year’s ISA shares.

This elastic and economical account can be a great way to generate a second income -free tax, especially for people who want to build a second stream of income.

It should be remembered that tax treatment depends on the individual circumstances of each client and may change in the future. The content in this article is provided only for information purposes. It is not to be, nor does it constitute any form of tax advice. Readers are responsible for implementing their own diligence and obtaining professional advice before making investment decisions.

FTSE 100 shares offer dividends and growth

Investing in a balanced portfolio of FTSE 100 shares can be the key to achieving this goal. By carefully choosing shares that balance the risk, growth and income, investors can benefit from a fixed dividend payment and recognition of capital.

Companies with robust business models, faithful clients and constantly growing revenues usually make reliable long -term investments.

One of these stocks is Admiral group (LSE: ADM). The engine insurer has returned from a challenging time, and the price of the shares has increased by 13% in the last 12 months, and 56% in two years. All -year results, published on March 6, emphasized this impressive growth.

The profit before taxation increased by 90% to 839.2 million GBP, powered by force in British motor business. Group trading increased by 28% to 6.15 billion GBP. The Council also reported a 14% augment in the number of customers, reaching 11.1 m.

Admiral met with challenging years, because the cost of claims hit the insurance industry, squeezing margins. This is a highly competitive sector, because customers are constantly looking for cheaper contributions in comparative sites. They doubled during the crisis of living.

However, the reflection of the Admiral emphasizes his basic strength. Investors will also be attracted to an attractive dividend profitability of 6.1%, although it is crucial to remember that dividends are never guaranteed.

Despite the recent augment in share prices, the admiral still looks quite valued, with price ratio to a profit of 13.8.

Buy dividend shares and stick to them

Generating monthly passive income in the amount of 1000 GBP (12,000 GBP per year) in retirement requires a carefully built investment portfolio, containing at least a dozen actions from different sectors and various risk profiles.

Assuming the average dividend profitability of 6% per year, the investor would need a total portfolio of about 200,000 GBP to achieve this income.

Building this sum from scratch over 20 years is possible to achieve disciplined investing. If the 45-year-old investor begins now and their portfolio provides an average of 7% of the annual return, basically according to the long-term average FTSE 100, they would have to invest 385 pounds a month to achieve the goal of 200,000. GBP at the age of 65.

By choosing high -quality shares, which slightly exceed the market and reaching an average return of 9% per year, they can achieve the same goal by investing only 300 pounds per month.

These numbers show that even at the age of 45 it is not too tardy to start saving seriously. The key is investing as early as possible, and will remain a course through ups and downs.

Investing consistent in solid shares of FTSE 100 dividends can affect retirement.