How much would an ISA need to bridge the gap between the State Pension and £38,584 a year?

Andrew Mackie asks: is the State Pension really enough — and what would it take to bridge the gap to a higher retirement income?

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Andrew Mackie

Published 2 May

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The State Pension currently pays just over £12,547 a year. This is well short of the £38,584 average UK salary based on the latest ONS data.

That gap is exactly why I’ve been thinking about whether an ISA could realistically bridge the difference and turn a basic retirement income into something far more comfortable.

But what would it actually take to bridge that gap in practice?

Asking the right question

Most investors aiming to replace a full salary would likely focus on bridging the £26,037 annual gap in retirement income.

But the challenge isn’t just reaching a target number — it’s understanding both sides of the equation: accumulation and drawdown.

Retirement isn’t just about preserving a pot untouched. It’s about drawing an income that keeps pace with rising costs, without running the portfolio down too quickly. That’s why portfolio construction matters across an investor’s lifetime.

Crunching the numbers

Based on a conservative 4% annual return in retirement and 3% inflation, the model suggests the need for a portfolio of around £578,388 at age 65.

This would be sufficient to sustain withdrawals of £26,037 a year through to age 90.

That’s what the chart below is showing.

The blue line shows the portfolio value over time as withdrawals reduce the balance. In reality, outcomes would be more volatile than this smooth path suggests, as returns and inflation rarely move in straight lines.

What stands out is that even as withdrawals reduce the portfolio, it continues to generate returns throughout retirement. This is reflected in the gold line on the chart, which shows how ongoing compounding keeps the curve from flattening too quickly. It’s a reminder that maintaining a healthy portfolio in retirement matters just as much as during accumulation.

Chart generated by author

A huge gamble and bad news if you live beyond 90 years.

Income for the current calendar year £4,553.00, dividends start to flow into the SNOWBALL next week. The current fcast is to earn around 1k of dividends for re-investment every month.

If Mr. Market or Red Ed Miliband gives the SNOWBALL the chance to lock in a gilt yield of around 6% on a ten year gilt, it would become a core holding for the SNOWBALL. If not the SNOWBALL may buy CMPI if/when the Renewables sector consolidates.

RM Infrastructure leaves the Watch List after its latest tender offer as it continues its wind-down.

Renewables Infrastructure Grp (The)

1 May 2026

The Renewables Infrastructure Group Limited

The Renewables Infrastructure Group (“TRIG” or “the Company”) is a London-listed renewable energy investment company. TRIG creates shareholder value through a resilient dividend and long-term capital growth, underpinned by a diversified portfolio of renewable energy infrastructure that is actively managed by specialist investment and operations managers.

Net Asset Value update – Q1 2026

TRIG announces an estimated unaudited Net Asset Value as at 31 March 2026 of 104.1 pence per share, an increase of +0.1 pence per share in the quarter principally due to:

·	Good portfolio performance particularly across TRIG’s UK and German wind projects;
·	Actual inflation is running at a rate higher than was assumed in the valuation as at 31 December 2025;
·	Power price fixes at elevated levels including those placed following the escalation of the conflict in the Middle East; and
·	The benefit to NAV per share delivered by share buybacks; offset by
·	Lower medium-term revenue forecasts, particularly associated with removal of the Carbon Price Support in the UK.

The Board reaffirms the dividend target for FY 2026 at 7.55p per share

Gross cash cover for 2026 is expected to exceed 2.0x, calculated based on forecast operational cash flows before the c. £170m repayment of amortising project-level debt. Net dividend cover for 2026 is expected to be c. 1.1x.

Fcast income from TRIG over the next 12 months £1,088. The current plan is to re-invest earned dividends to either GCP and or SEQI.

Historically traded above its NAV, lots of change in their sector and with likely rising interest rates, its likely to continue to trade below its NAV

Anyone who bought recently has earned a much higher yield than the long term holders, you should receive that yield, gently increasing as long as you hold the share.

24 March 2026

Foresight Solar Fund Limited

Annual Results to 31 December 2025

Foresight Solar, the fund investing in solar and battery storage assets to build income and growth, announces its results for the year ended 31 December 2025. 

Financial highlights

·     Delivered a dividend of 8.10 pence per share (pps) for the year, supported by robust operational performance and active power price hedging, with 1.3x cover in line with the Company’s target.

·     Announced a target dividend of 8.10pps for 2026, providing flexibility to allocate surplus cash, including to build future dividend cover. At the 23 March 2026 share price, this represents a 13.4% dividend yield.

·     Expected 1.1x dividend cover for 2026. Production year-to-date and current contracted revenue hedges are expected to provide 1.0x cover. Uncontracted revenues offer additional upside as energy prices remain elevated.

·     Maintained total gearing comfortably within investment policy limits at 41.2%.

·     Returned £56.1 million to shareholders through a combination of dividends and share buybacks.

Tks MR. Market but remember the rules posted earlier.

You must check and consider the future guidance from the management, if you continue to hold.

Rule 1.

Rule 2.

Rule 3.