Many investors in the FTSE 100 and FTSE 250 are waking up to an uncomfortable truth. Most people simply will not have enough to fund the retirement they want.
A 3 June report by Pensions UK suggests that over three-quarters of people are not on course to enjoy even a ‘moderate’ lifestyle when they retire. Moderate is defined as costing £32,700 a year for one person and £45,400 for two.
That looming shortfall makes building a reliable second income more important than ever. And one company that stands out to me in this search for dependable long‑term payouts is MONY Group (LSE: MONY).
How do the growth projections look?
The tech-led savings giant, formerly Moneysupermarket.com, saw record revenue of £446m and record EBITDA of £145m in its 2025 results. Profit before tax climbed 2% year on year to £110m and adjusted basic earnings per share rose 5% to 17.9p. It looks a solid base to support strong dividends going forward.
A risk here would be a prolonged slowdown in consumer switching activity if interest rates fall sharply. If the incentive to switch weakens, so can short‑term revenue momentum.
Another is the competitive pressure from rival comparison platforms and big tech firms expanding into financial services.
Nevertheless, analysts forecast MONY’s profits will grow at an annual average rate of 7% over the medium term at least.
How much second income can it generate?
Given this, analysts project that its dividend yield will rise to 7% this year, 7.2% next year, and 7.5% in 2028. So, a £20,000 holding in the firm on the forecast 7.5% as an average would make £22,241 in dividends after 10 years.
That also factors in the payouts being reinvested into the stock to utilise the full turbocharging effect of dividend compounding. It is a similar idea to leaving savings to grow in a high-interest account. And the effect on returns can be extraordinary over time.
On the same basis, the dividend payouts would increase to £168,431after 30 years. That marks the end of the standard investment cycle for long-term investors. It starts around 20 with first investments and then ends around 50 with early retirement options.
By that point, the total value of the holding (including the initial £20,000 stake) would be £188,431.
And that would pay a yearly second income of £14,132!
My investment view
For me, these numbers highlight just how powerful long‑term compounding is when paired with a business that keeps growing steadily.
MONY is not the most dramatic name in the market, but its consistency is exactly what many second‑income investors are looking for. If it continues delivering the profit increases analysts expect, the dividend stream could become increasingly meaningful over time.
And in a world where many are struggling to build the retirement they want, a dependable, rising payout like this could play a valuable role in closing that gap.
I already have other high-yielding holdings in the financial sector, so buying another would unbalance my portfolio. But MONY is firmly on my watchlist to buy if one of the others starts to underperform.
In the meantime, I have my eye on bargain-basement stocks in other sectors that also have very high dividend yields.
Should you invest £5,000 in Mony Group Plc right now?
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Simon Watkins does not hold any positions in the companies mentioned.
