Investors Need £372,457 to Match £13,036 State Pension by April 2027
Updated
Updated · Yahoo Finance UK · Sep 20
Investors Need £372,457 to Match £13,036 State Pension by April 2027
1 articles · Updated · Yahoo Finance UK · Sep 20
Summary
£372,457 invested at a 3.5% FTSE 100 dividend yield would generate about £13,036 a year, matching the full new State Pension projected for April 2027.
That pension target assumes a 3.9% rise from the current £12,547.60 annual payment, based on the latest earnings figure under the Triple Lock.
£314,120 would be enough at BT's 4.2% yield, while applying the FTSE 100's 16.7% one-year total return cuts the required pot to £78,060.
The lower £78,060 figure is framed as unsustainable for long-term withdrawals, highlighting how unusually strong recent UK large-cap returns have been.
BT, trading at 200.50p with a roughly £20 billion market value, recently raised its FY26 dividend 2% and lifted its full-fibre build target 20% to up to 5 million premises.