The full UK State Pension is currently £12,547.60 a year (2026/27). But industry experts claim more is needed to ease the financial pressure of retirement. That’s why many individuals invest in stocks and shares.
But how much would be needed in an ISA to generate an annual income equal to twice that of the State Pension?
How do the numbers stack up?
To answer this question, we have to look at the return we might get from a portfolio of dividend shares. Depending on the yield achieved, this is how much is required in an ISA to meet our target income of £25,095 a year:
- 4% – £627,375
- 5% – £501,900
- 6% – £418,250
- 7% – £358,500
- 8% – £313,688
But what’s realistic?
Although dividends can never be guaranteed, there are plenty of high-yielding stocks available at the moment. For example, there are currently (17 July) 95 on the FTSE 350 returning 4% or more.
- 4%+ = 95
- 5%+ = 67
- 6%+ = 40
- 7%+ = 21
- 8%+ = 14
- 9%+ = 11
- 10%+ = 4
Some of those with a yield approaching (or above) double digits should be treated with caution. These might be artificially inflated by a falling share price, which could be an indication that investors are expecting trouble ahead.
But there’s one stock yielding 6.3% at the moment. What’s more, it looks to have strong growth prospects.
Let’s take a closer look.
Which one?
The company in question is MONY Group (LSE:MONY).
Its primary business is to help customers reduce their bills by finding the best deals on insurance, energy, travel, and other financial products. It owns and operates a number of well-known brands and websites, including MoneySuperMarket, MoneySaving Expert (founded by Martin Lewis, and later sold to the group), and TravelSuperMarket.
It also has a business-to-business division, which offers a white-label price comparison service for third parties.
Post-pandemic, the group’s paid dividends — and offered a yield at the end of its financial year (31 December) — as follows:
- 2025 – 12.63p/6.9%
- 2024 – 12.50p/6.5%
- 2023 – 12.10p/4.3%
- 2022 – 11.71p/6.1%
- 2021 – 11.71p/5.4%
A current yield of 6.3% means £398,333 of the group’s shares would produce £25,095 of dividend income a year.
And if the group can grow as analysts are predicting, a 6%+ yield is unlikely to be on offer for much longer as the share price will likely rise. They’re forecasting earnings per share of 18.5p (2026), 19.8p (2027), and 20.6p (2028). If achieved, EPS will have grown 15% over three years.
Possible challenges
However, some investors have concerns that AI could disrupt its business model. There are fears that consumers could bypass price comparison websites entirely and use chat-style apps instead.
Also, MONY Group’s business model isn’t particularly complicated and could easily be replicated by a well-funded new entrant.
My view
But it has the advantage of having well-known trusted brands in its stable. At the end of 2025, its net promoter score (a measure of loyalty, satisfaction, and advocacy) was 73 and rising. This puts it in the top quartile of companies. A figure above 80 is described as world-class.
Also, its vast collection of data could prove to be a highly-prized asset in a world of AI. Yes, it’s dividend is attractive but there’s also the chance of some capital growth too.
In my opinion, this makes MONY Group an exciting share to consider.
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James Beard owns shares in MONY Group.
