5 LSE stocks one can buy after retirement

Highlights

  • The UK’s pension system ranking jumped up to 9th place from 15th place a year earlier in the Mercer CFA Institute Global Pension Index 2021.
  • In April, the state pensions in the UK will rise by 3.2% as the state pension increases in line with rising inflation.

The UK’s pension system ranking jumped to ninth position from 15th place a year earlier in the Mercer CFA Institute Global Pension Index 2021, which benchmarked 43 retirement income system across the world. The index highlighted the strength and weaknesses of various retirement systems across the world. However, it warned that many savers still face a retirement cliff edge.

The index focuses on the limitations in each retirement system and suggests possible areas of improvement that would offer more adequate and sustainable benefits in later life.

The reason behind the improved ranking of UK’s pension system is automatic enrolment into workplace pensions. Although, the index suggested some improvement in areas such as the pensions gender gap and pension adequacy for lower income workers. Further, it suggested that enhancing workplace pension contributions and coverage under automatic enrolment could help deliver better retirement outcomes. 

Iceland has secured the first spot with the best retirement system, followed by the Netherlands and Denmark taking second and third places, respectively.

In April, the UK state pensions will rise by 3.2% as the state pension increases in line with Consumer Price Index (inflation). In September, the Consumer Price Index stood at 3.2%, which means the basic state pension will increase by £4.25, to £141.85 per week from £137.60 per week, and the flat rate pension will increase by £5.55, to £185.15 per week from £179.60 per week.

A small fall in month-on-month inflation between August and September this year means the pensioners may see increase in the living costs with the rising inflation. Further, pensioners will miss out on an 8.3% rise through earning growth as by suspending the triple-lock state pensions inflation increases, earnings growth or 2.5%, whichever is highest.

Also read: 5 Stocks You Can Invest In Post-Retirement

As older investors are more risk averse, let’s take a look at some of the stocks you can buy after you retire.

A small fall in month-on-month inflation this year means the pensioners may see increase in the living costs.

Source: Copyright © 2021 Kalkine Media 

Pharos Energy Plc (LON: PHAR)

Pharos Energy Plc is an independent oil and gas company with production and exploration assets in Southeast Asia and the Middle East. Its current market capitalization stands at £88.97 million. It has given a return of 74.48% in 1 year. Its 5-year average dividend yield is 12.7%. The previous close price of Pharos Energy PLC’s shares was GBX 20.10 as on 21 October 2021. 

Newriver Reit PLC (LON: NPR) 

Newriver Reit PLC focuses on investing, developing and managing retail and leisure property. Its current market capitalization stands at £229.87 million. It has given a return of 38.19% in 1 year. Its 5-year average dividend yield is 12.6%. The previous close price of Newriver Reit PLC’s shares was GBX 74.90 as on 21 October 2021.

 Also read: 10 Top Retirement Stocks on LSE To Buy 

EVRAZ PLC (LON: EVR)

EVRAZ Plc has advanced operations in Russia, Italy, Ukraine, US, Czech Republic, Kazakhstan, South Africa and Canada. In August 2021, the company has approved the construction of a new vanadium slag processing plant in Russia’s Uzlovaya special economic zone.  Its current market capitalization stands at £9,350.20 million. It has given a return of 77.37% in 1 year. Its 5-year average dividend yield is 10.5%. The previous close price of EVRAZ PLC’s shares was GBX 641 as on 21 October 2021.

Galliford Try Holdings PLC (LON: GFRD) 

Galliford Try Holdings Pls operates through a portfolio of distinct brands such as Galliford Try, Morrison Construction, and Oak Fire Protection. Its current market capitalization stands at £211.78 million. It has given a return of 162.38% in 1 year. Its 5-year average dividend yield is 10.2%. The previous close price of Galliford Try Holdings PLC’s shares was GBX 190.70 as on 21 October 2021. 

VPC Specialty Lending Investments PLC (LON: VSL) 

VPC Specialty Lending Investments PLC is an investment trust that offers asset-backed leading solutions to emerging and established companies. Its current market capitalization stands at £244.88 million. It has given a return of 37.93% in 1 year. Its 5-year average dividend yield is 9.8%. The previous close price of VPC Specialty Lending Investments PLC’s shares was GBX 88.00 as on 21 October 2021.

Also read: Four pre-retirement moves that can secure your old age

Comment


Disclaimer