By investing in a personal retirement (SIPP), the government gives us aid, supplementing our contributions with a generous tax relief. In the case of a basic taxpayer, every 100 GBP costs only 80 GBP.

For someone who pays tax for 40%, 100 GBP costs only 60 GBP. What’s more, capital profits and dividends grow from tax, while we can take 25% of our income tax pool. Further payments will be added to the income of persons this year and are potentially subject to income tax.

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 dividends build wealth

Let’s say that someone else is striving for a monthly income of 1750 pounds from their omid, in retirement. How much do they need to invest?

The classic withdrawal rule can aid at this point. This suggests that if the investor takes 4% of his pot each year, the basic capital will never end. If the goal is 1750 pounds per month or £ 21,000 a year, their retirement pot will be worth about 525,000 pounds.

This is quite a mighty part of the money. But thanks to the tax relief and the long -term advantages of joining FTSE 100 Shares may be more possible than people.

Let’s say that someone has invested 650 pounds a month, and their portfolio generates an average return of 7% per year. In this scenario it would take them 25 years to achieve the goal of £ 525,000. Of course, 650 pounds are a lot of money to find every month, but 40% of the tax relief would reduce to 390 GBP. Still a lot, but slightly less discouraging.

I have SIPP myself and contains about 15 to 20 different FTSE 100 shares, combining the potential for increasing share prices with a high level of dividend income.

Persimmon shares look good

So how do you achieve our final goal? Today on FTSE 100 there are amazing crops. House builder Taylor Wimpey,

Another house builder, Persimmon (LSE: PSN), pays a dividend income of 5.64%. The key reason for these high profitability is that the shares in the sector beat. High prices of houses and mortgage rates extend the price accessibility, achieving the demand of buyers. The cost crisis attracted the costs of materials and work, squeezing the margins.

As a result, the price of Persimmon shares has dropped by 37% in the last 12 months. However, the sale can also be an opportunity for bolder investors to think about potential recovery.

Persimmon looks good, trading in price to a profit of just over 11 (the number 15 is usually seen as a fair value). He runs the pace of completion of the house, with construction plans this year from 11,000 to 11,500 houses, growing to 12,000 in 2026.

What he really needs now is a few additional interest rate discounts, as well as the very needed economic optimism. When this happens, the sentiment could jump quite quickly. This may mean an escalate in capital to escalate paid dividends.

We are not there yet, but I think that it is worth considering actions for patients who understand the risk. This is just one of many FTSE 100 stocks, which is worth watching today. If this one doesn’t like it, there is much more.