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2023 has (to date a minimum of) been a 12 months to overlook for a lot of FTSE 100 shares. As I kind, the UK’s main share index is down round 2% because the begin of January at 7,322 factors.
However I’m not dismayed by the Footsie’s disappointing decline within the 12 months to this point. I make investments for the lengthy haul, and investing in UK shares has lengthy proved to be a good way to construct wealth over time.
In truth I’ve used current share value weak point to purchase a string of UK blue-chip shares. This isn’t simply because it would assist to supercharge my eventual returns by shopping for low in the present day and at some point promoting excessive.
It’s additionally as a result of I imagine I in all probability must hold investing if I wish to retire at a good age.
Older workforce is rising
Newest statistics this week from The Centre for Ageing Higher present how an increasing number of older individuals are being pressured to remain working to make ends meet. It stated that “there are actually nearly a million extra staff aged 65 and above within the UK labour market than there have been at the start of the century.”
The charitable basis says that multiple in 9 (or 11.5%) are actually working previous their sixty fifth birthday within the UK. That is greater than double the one in 20 recorded on the flip of the millennium.
The present cost-of-living disaster has led to a leap in what number of older individuals are nonetheless within the workforce. However don’t be fooled. the quantity has been steadily rising because the State Pension has didn’t sustain with dwelling and social care prices.
This development seems to be set to proceed too as the federal government struggles to fund an more and more giant aged inhabitants.
Man with a plan
I imagine that investing in FTSE 100 shares might assist me keep away from an identical destiny. A fast have a look at the returns of Britan’s main share index because the mid-Nineteen Eighties exhibits why persevering with to speculate right here is a good suggestion.
Based on IG Group, the FTSE delivered an annual return of seven.48% between 1984 and 2022. The previous isn’t a dependable indicator of future returns. But when the index continues to ship this return I might — if I invested £500 right here every year — make a life-changing sum of £618,146 over 30 years.
As I stated on the prime, I hope to make even higher returns than the broader market by shopping for high quality shares which might be buying and selling under worth. And proper now there are numerous to select from as buyers have panic-sold prime corporations through the course of the 12 months.
A few of the FTSE index shares I’ve added in 2023 embrace Diageo, Ashtead Group, Aviva and Authorized & Common. And I plan to proceed rigorously researching to seek out extra bargains to purchase. It might make the distinction between me retiring comfortably at an age of my selecting, or struggling to make ends meet when (or if) I ultimately cease working.
