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2023 has (up to now no less than) been a 12 months to overlook for a lot of FTSE 100 shares. As I sort, 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 up to now. 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.
The truth is I’ve used current share worth 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 immediately and sooner or later promoting excessive.
It’s additionally as a result of I imagine I in all probability must maintain investing if I need 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 persons are being pressured to remain working to make ends meet. It mentioned that “there are actually nearly a million extra employees aged 65 and above within the UK labour market than there have been firstly 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 persons 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 pattern appears set to proceed too as the federal government struggles to fund an more and more massive aged inhabitants.
Man with a plan
I imagine that investing in FTSE 100 shares may assist me keep away from an analogous destiny. A fast have a look at the returns of Britan’s main share index because the mid-Eighties exhibits why persevering with to take a position right here is a good suggestion.
In accordance with 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’d — if I invested £500 right here every year — make a life-changing sum of £618,146 over 30 years.
As I mentioned on the high, I hope to make even higher returns than the broader market by shopping for high quality shares which can be buying and selling under worth. And proper now there are numerous to select from as traders have panic-sold high firms through the course of the 12 months.
A few of the FTSE index shares I’ve added in 2023 embody Diageo, Ashtead Group, Aviva and Authorized & Common. And I plan to proceed fastidiously researching to seek out extra bargains to purchase. It may make the distinction between me retiring comfortably at an age of my selecting, or struggling to make ends meet when (or if) I finally cease working.
