40-Year-Old Can Reach £1 Million by 60 With £24,450 Yearly Investing

1 articles · Updated · twelfthmagpie.com · Jun 15

A £1 million portfolio by age 60 is achievable from a zero starting point at 40, but it requires about £24,450 in annual contributions over 20 years.
That target assumes a 7% annual compound return, which the report says could be realistic with a diversified portfolio of high-quality dividend shares despite market volatility.
A Self-Invested Personal Pension can cut the saver’s outlay through tax relief: a standard-rate taxpayer would need to contribute roughly £19,560, falling to £14,670 or £13,448 for higher or additional-rate taxpayers.
A lower target also sharply reduces the burden—aiming for £500,000 instead of £1 million would roughly halve the monthly contribution needed.
As one example of an income stock, the report highlights M&G’s 6.3% yield, while warning that dividend growth is not guaranteed and market turbulence could trigger fund outflows.