Investor Targets £10,000 ISA Income With £500 Monthly Saving in 15 Years

2 articles · Updated · twelfthmagpie.com · Aug 15

£10,000 a year in tax-free ISA income could be built from scratch by saving £500 a month, with the article outlining both a passive FTSE 100 route and a higher-yield stock-picking approach.
A 3% FTSE 100 yield implies a portfolio of about £333,000, which the piece says could take roughly 21 years to reach assuming 8% annualised returns.
A 6% yield from selected income shares would cut the target pot to roughly £167,000 and shorten the timeline to just under 15 years—almost six years faster.
Standard Life is highlighted as one candidate, offering a 5.9% yield after 2025 adjusted operating profit rose 15% to £945 million and cash generation increased 5% to £1,474 million.
The article still flags risks from interest rates, currency swings, macro weakness and long-term annuity liabilities, framing the strategy as informational rather than tax or investment advice.