Of course, many discover the hard way that ‘passive’ income isn’t that passive.

Robert Kiyosaki, author of Rich Dad Poor Dad, put it simply: “The word ‘passive’ is misleading. Passive income is not passive in the beginning. It is intensely active. It requires capital, education, or time.”

But here’s the thing — it IS possible. You just need honest expectations before you start.

The costs nobody tells you about

Many writers talk about the money that can be made from a variety of passive income ideas, but skip the upfront grind. So let’s be straight about what passive income actually demands. 

The upfront time cost:

• Digital course creation: 100+ hours upfront for £50–£200/month.
• Rental property: high costs and weeks of work before tenants move in.
• Affiliate vlog: 150+ hours of content before ranking on Google.
• Dividend portfolio building: 10+ hours a week researching stocks and regular monthly investment.

On top of that, no income stream is risk-free. Courses lose sales to competitors, tenants damage property, and Google algorithm changes kill affiliate traffic.

And the work doesn’t stop there. There’s also ongoing maintenance required:

• Courses need updates every six months.
• Rental properties need repairs and tenant management.
• Vlogs need constant SEO reconfiguring.
• Dividend portfolios need quarterly rebalancing.

Not to mention the tax obligations. Recently, the dividend allowance in the UK was reduced from £2,000 to just £500. So with all that to consider, how do you actually build passive income without getting burned?

A dividend strategy in an ISA

Here’s where things get interesting. Investing in dividend shares through an ISA changes everything because you avoid tax on investments up to £20,000 a year. All dividends, all growth – it’s all yours, tax-free.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

Take a stock like Aberdeen Group (LSE: ABDN) for example. It’s a UK-listed asset manager with a 5.9% dividend yield and a 67.4% payout ratio. It’s paid dividends for 20 consecutive years, and dividend cash coverage sits at 2.3 times.

And despite a tough market, it did well in recent Q1 results, with assets under management rising 9.5% year-on-year.

When put together, these numbers describe a well-established business that can be relied upon to pay dividends consistently for decades to come.

But there are risks. As an asset manager, it’s highly exposed to market swings, so profits can quickly reverse if the economy takes a dive. If investor sentiment weakens, it usually leads to a drop in price, which can negate any dividend benefit.

So while high yields are necessary for an income portfolio, it’s important to include a diverse mix of stocks. This helps to reduce the risk of losses in one area when market conditions change.

The bottom line

Passive income is real, but it requires honest upfront work and ongoing oversight. There’s no magic button. You need capital, time, and risk tolerance.

Fortunately, an ISA makes it easier, avoiding the £500 limit and helping your dividends grow tax-free. When targeting a realistic passive income strategy, it’s worth considering a solid dividend payer like Aberdeen Group

The question is, are you willing to put in the upfront work before you see real returns?

Should you invest £5,000 in aberdeen group right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if aberdeen group made the list?

Mark Hartley does not hold any positions in the companies mentioned.

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To put that into perspective, research from St James’s Place suggests a “comfortable” retirement costs around £43,900 a year for a single person, rising to £60,600 for a couple.

That leaves a sizeable income gap of more than £30,000 a year between what the government provides and what many would consider a realistic retirement lifestyle.

So how big would an ISA need to be to close that gap and deliver a comfortable retirement income?

How much would an ISA need to contain?

To generate enough passive income to close a retirement shortfall of roughly £31,353 a year, an investor would likely need an ISA portfolio worth around £783,825, assuming a 4% annual withdrawal rate.

That’s clearly a substantial amount of money and far beyond what most people could realistically invest overnight.

However, the important point is that long-term wealth creation rarely happens all at once. Through consistent monthly investing, compounding returns, and reinvesting dividends along the way, even relatively modest contributions can gradually snowball into a much larger portfolio over time.

And that’s why building a sizeable ISA often starts with simply identifying high-quality long-term investments capable of compounding wealth over decades.

So which shares could help build that ISA?

One stock I increasingly like for long-term ISA investors is Aberdeen (LSE: ABDN).

At first glance, the FTSE 250 asset manager may not appear especially exciting. Yet after years stuck in the doldrums, the shares have quietly surged over the past 12 months as confidence in the turnaround has started to rebuild.

Interestingly, the dividend yield has fallen from more than 11% a year ago to around 6.5% today. But in this case, that’s solely down to the fact that the share price has climbed sharply rather than the payout collapsing.

To me, that suggests the market is beginning to reassess the company’s long-term prospects.

A big part of that story is interactive investor, which continues benefiting from structural growth in ISAs and SIPPs as more people take control of their own retirement planning. If those long-term savings trends continue, then earnings growth could become increasingly supported by recurring platform revenues rather than purely market performance.

What also stands out to me is valuation. Despite the recent rally, the shares still trade well below where they sat several years ago, even as operational momentum has started to improve. If inflows continue stabilising and retail investing growth remains strong, I think there’s still meaningful room for sentiment towards the business to recover further.

There are still risks. Asset managers remain highly exposed to investor sentiment and fund flows can quickly reverse during weaker markets.

However, after years of pessimism, I think investors may still be underestimating how much the outlook has improved here. For ISA investors focused on building long-term passive income, I see it as a stock worth considering.

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But turning that idea into reality is far more dependent on how the portfolio is built than many investors realise.

The real driver of second income growth

That £1,000 a month second income from a Stocks and Shares ISA works out at £12,000 a year — implying a portfolio of roughly £300,000 using a 4% income assumption.

On the surface, that makes the goal feel straightforward: build a large enough ISA and the income follows.

But in practice, the path towards that figure can vary dramatically between investors. Small differences in returns and reinvestment can have a surprisingly large impact on how quickly an ISA becomes capable of generating meaningful second income.

The levers behind ISA second income

Rather than viewing second income as a fixed target, it can instead be broken down into three key variables: time, portfolio yield, and ongoing contributions.

Fix any two, and the third becomes the factor that determines how quickly the £1,000-a-month goal is reached.

The table below shows how changing the annual return alone can dramatically shorten the path to a £300,000 portfolio, even with the same £750 monthly contribution.

This is why stock selection matters. Stronger long-term returns and higher starting yields can materially reduce the time needed for an ISA to begin generating meaningful second income.

Stock picking

For investors trying to accelerate the path towards a meaningful second income, the FTSE 250 contains plenty of businesses still offering sizeable yields.

One that stands out to me is Aberdeen (LSE: ABDN). The asset manager currently offers a dividend yield of around 6.6%, despite the share price climbing roughly 75% over the past year.

I think investors are becoming increasingly optimistic about the company’s prospects. For years, the business struggled with persistent outflows from its key Adviser division. But recent results showed genuine improvement, with net outflows narrowing sharply as the group continues repositioning parts of the business.

What particularly interests me is the longer-term growth opportunity. Demand for self-directed investing and retirement products continues to grow, which plays directly into the company’s interactive investor platform. Customer demand for SIPPs has been especially strong.

At the same time, the group retains deep expertise in Asian and emerging market investing. Those regions lagged badly during the dominance of US mega-cap technology shares, but investor interest is now beginning to broaden into cheaper and less crowded markets.

There are still risks to consider. Asset managers remain heavily exposed to market sentiment, and prolonged weakness in global equities can pressure both flows and earnings. Aberdeen also still needs to prove that recent operational momentum is sustainable.

However, the combination of improving business momentum and a still-generous dividend yield is why I see the shares as one to consider for long-term second income investors.

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These are driven by a far higher concentration of mature, cash‑generative sectors — banks, insurers, energy, miners, asset managers, and telecoms — than in other major global indexes.

The US’s S&P 500 is dominated by tech and growth stocks, which reinvest heavily and pay much lower yields. European markets sit somewhere in the middle, as do Asian ones, but both are generally below the FTSE’s payout levels.

What sort of returns can be made?

From 2020 to now, Aberdeen has paid an annual dividend of 14.6p. That resulted in average annual dividend yields of 7.7% in that year, 6.1% in 2021, 7.7% in 2022, 8.2% in 2023, 10.3% in 2024, and 7.1% in 2025.

These changing yields, despite a steady dividend, highlight that these returns can go down or up along with a firm’s share price.

Analysts forecast Aberdeen’s dividend yield at 7% this year, and remaining the same until 2028 at least.

How’s this translate into long-term income?

A £20,000 holding in the firm (the same as mine) would make investors £20,193 in dividends after 10 years and £142,330 after 30 years.The figures are based on the forecast 7% as an average, and on ‘dividend compounding’ being used.

That endpoint would coincide with early retirement options around 50 if someone started their investment journey about 20.

The total value of the holding in Aberdeen would be £162,330 by that point, including the original £20,000 investment.

And that would be paying an annual income of £11,363 from dividends alone by that stage!

Does the business look strong?

Aberdeen is not without its risks, as with all firms. One is that its ongoing reorganisation — involving cost‑cutting and platform simplification — takes longer than expected. This could delay the realisation of higher margins and increased profits that it anticipates. Another is any weakening in the global economy, which could deter investors from opening new accounts.

Nonetheless, its 2025 results released on 3 March this year showed IFRS profit before tax surging 76% year on year to £442m. It reflected a stronger platform performance and the early benefits of its simplification programme.

Net outflows also narrowed sharply to £1.7bn from £6.1bn, signalling stabilising client activity. Investment performance strengthened too, with 84% of assets outperforming the relevant benchmarks over one year and 80% over three.

My investment view

Aberdeen brings together everything that makes the FTSE such fertile ground for income investors, in my view. It displays high dividend yields, steady payouts, and the power of long‑term compounding.

Recent results also point to a business gradually strengthening, with profits rising sharply and flows stabilising. For me, that combination of dependable income and recovering operational performance is exactly what I want in a long‑term holding.

That is why Aberdeen remains firmly on my buy list — and why I am continuing to add to my position. Other very high-yielding stocks in other sectors have also caught my attention very recently.

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With this in mind, some might look to target income from dividend stocks. By being smart with the way the money’s deployed, a four-figure monthly income further down the line is plausible. But how?

Key points to remember

To begin with, one benefit of using an ISA for this strategy is that dividends received will be banked without the tax being deducted. Put another way, there isn’t any tax payable on the income received in the ISA. This means payments can accumulate faster than usual, compounding income over time.

Another point worth noting is that reinvestment of dividends in the early years can make a big difference versus spending it. For example, if a stock has a dividend yield of 7% and someone invests £1k, in year one, it should pay £70 in dividends. Instead of spending this money, buying an additional £70 worth of the stock means that in the following year, the £1,070 could pay £74.90 in income. When this gets scaled up over time and money, it really makes a difference.

Please note that tax depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

Running the numbers

Let’s assume someone invests £500 a month in an ISA portfolio that yields 7%. Based on the current yields of stocks in the FTSE 100 and FTSE 250, I think this is a reasonable target. In that case, by year 20, it could pay out £1,456 a month on average.

Of course, this might take longer if companies cut dividends or if some black swan events happen. Some might think waiting for two decades is too long. The amount invested can change things, as the table below illustrates, showing the year when the monthly average income reaches £1,456.

A potential contender

In terms of stocks to think about including, one that’s hot right now is Aberdeen Group (LSE:ABDN). The stock’s up 32% over the past year, with a dividend yield of 7.03%.

At its core, Aberdeen’s an asset manager. That means it earns fees based on the amount of client money it looks after, which currently sits north of £550bn. The bigger those assets and the better the investment performance, the more fees roll in.

The share price performance looks impressive, but it’s really a reflection of a rebound after years of underperformance. This was mainly due to painful outflows, but Aberdeen’s finally stabilising, thanks to rising profits and cost savings. Profit before tax jumped 76% in the latest 2025 full-year results.

As far as the dividend goes, I see it as sustainable. The payout’s been held steady for years, and improving profitability plus solid capital generation suggest it’s broadly supported by cash flow as the business stabilises. Of course, there are risks. For example, Aberdeen’s core investment arm continues to face pressure from low-cost passive funds, which pose a threat.

Yet overall, I think it’s a good stock to consider as part of a diversified income portfolio strategy.

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Companies share a portion of their profits directly with shareholders providing a steady stream of cash without you needing to lift a finger. 

This passive income is a powerful tool for building long-term wealth, especially when you reinvest those payouts to buy more shares. In this way, the magic of compounding returns really shines.

Two dividend prospects

While many investors flock to the glamour of the FTSE 100, the FTSE 250‘s often where the real gems hide. These mid-sized companies are frequently overlooked by the big institutional funds, which can lead to higher yields and better value for the individual investor.

If you’re looking to boost your portfolio’s income, I’ve been keeping a close eye on two particular names: OSB Group (LSE: OSB) and Aberdeen Group.

Both currently offer similarly atttractive yields, but may appeal to different investors in other ways.

OSB Group

I’ve already held shares in this challenger bank for several years and I’m considering buying more. The stock remains a compelling option for those chasing both income and value, though it comes with specific trade-offs.

Let’s take a look at its numbers:

• Yield: 6.8%.
• Payout ratio: 46.7% (a comfortable margin of safety).
• Cash coverage: 2.83 times (easily covers payments).
• Track record: 12 years of consistent payouts.
• Valuation: forward price-to-earnings (P/E) ratio of 6.56 (undervalued).

Overall, it looks like a good option for both value and income.

However, investors should note the balance sheet looks somewhat stretched, with liabilities currently exceeding current assets. If changing market conditions or falling interest rates dent its income, it’s financial position could become risky. 

Aberdeen Group

If you prefer a steadier hand, Aberdeen Group might be more up your street. It’s less of a pure value play than OSB, but it boasts a significantly more reliable historical track record.

• Yield: 7%.
• Payout ratio: 67.4%  (sufficient).
• Cash coverage: 2.29 times (covers payouts).
• Track record: 20 years of consistent payments (impressive).
• Valuation: forward P/E ratio of 14.10.

Aberdeen’s coverage is more limited but its balance sheet is solid. With equity far exceeding total debt, there’s less chance of debt obligations prompting a dividend cut. However, as a global investment group, market fluctuations can significantly impact its share price.

So what does this all mean for investors?

While both stocks offer a similar yield, the choice comes down to your personal risk appetite when considering whether to buy.

OSB Group offers a cheaper valuation if you are willing to overlook the tighter balance sheet, whereas Aberdeen provides the reliability of a longer, proven history and a stronger financial position.

While dividends remain one of the most reliable ways to generate passive income in an unpredictable market, remember that income’s only half the battle.

A healthy portfolio should also include some growth and defensive stocks, ensuring you aren’t putting all your eggs in one basket. 

Sector diversification is your best friend here. By spreading your risk across different industries, you ensure that a downturn in one area doesn’t derail your entire plan.

Keep your eyes on the long term, stay disciplined, and let those dividends do the heavy lifting for you.

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Crunching the numbers

If an investor contributes £10,000 a year and gradually increases that to £13,000, a portfolio growing at 8% a year would reach roughly £777,000 after 25 years.

But that assumes starting from zero.

In reality, many investors already have ISA savings. HMRC data suggests ISA balances often sit around the £30,000 mark. So I will use that as a starting point. This additional upfront capital changes the outcome significantly.

Adding that £30,000 lifts the final portfolio to around £964,500, which is enough to support a 4% withdrawal of roughly £3,215 a month.

Crucially, that starting balance isn’t directly comparable to the contributions. While investors add contributions gradually over time, the £30,000 is invested from day one — giving it the full benefit of 25 years of compounding.

That distinction shows up clearly in the numbers. Total contributions over the 25-year investing timeframe account for £276,000. The remaining £688,000 is generated through investment growth.

Of that, roughly £200,000 can be attributed to the compounding of the initial £30,000 alone — with the rest coming from the growth on contributions as they build over time.

In the end, contributions get you started — but time and compounding do most of the work.

Dividends and growth

One stock that fits this idea of growth working alongside long-term compounding is Aberdeen (LSE: ABDN).

The FTSE 250 asset manager currently offers a dividend yield of 7%, which already makes it attractive to income-focused investors. But the more interesting angle is where that income comes from.

A growing share of the business is now driven by interactive investor, its retail investing platform. Revenue here is closely tied to long-term investing behaviour — SIPPs, ISAs, and regular contributions. These are the same forces that underpin compounding in private portfolios.

In FY25, interactive investor delivered strong profit growth alongside continued customer expansion, with particularly strong momentum in pension-linked accounts. This is important because it links earnings more directly to long-term investing activity, rather than short-term market conditions.

In effect, the business benefits from the same compounding behaviour that investors are trying to harness themselves.

That creates a slightly different proposition: a high starting yield, combined with exposure to the structural growth of long-term investing habits.

Bottom line

Aberdeen sits at the intersection of two powerful long-term forces: the shift towards individual investing through SIPPs and ISAs, and its established expertise in emerging markets. This is a region that could benefit over the coming decade as capital rotation broadens beyond concentrated US exposure.

The key risk remains outflows. While these have eased from their peak, the business is still in transition after a difficult multi-year period. Progress is ongoing rather than complete.

Even so, the combination of a high starting income yield and improving operational momentum across parts of the group is notable. If fund flows continue to stabilise and platform growth compounds, Aberdeen has the potential to gradually re-rate as confidence rebuilds.

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When building a robust second income, here are several shares that stack up well against the competition.

Plenty of options

For comparison, the FTSE 250 average yield is currently 3.52%. To try to push for a four-figure monthly passive income stream, I’d target companies with a yield double the average. Fortunately, this isn’t a crazy idea. In fact, 21 stocks currently have dividend yields above 7%. This means an investor has plenty of choices to pick a diversified mix of stocks.

Chesnara’s a classic cash cow insurer, focused on managing pension books that generate predictable, long-term cash flows. That steady stream of surplus capital has supported a long track record of progressive dividends, making it particularly attractive for income investors. The current dividend yield is 7.73%.

Supermarket Income REIT has a dividend yield of 7.64%. It owns large grocery stores, let to major UK supermarkets on long, inflation-linked leases. That combination of essential retail tenants and built-in rent increases provides highly visible, resilient income.

Primary Health Properties invests in GP surgeries and healthcare facilities, with most rents ultimately backed by government funding. I like the stock because it combines the defensive nature of healthcare demand with long leases and inflation-linked income. It has a yield of 7.79%.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice.

Each stock mentioned has its own risks, which should be carefully considered before making any investment decision.

Investing £600 a month in a range of stocks with an average yield of 7% could see a portfolio grow quickly. With dividends reinvested, it would take just under 15 years to have at least £1,000 a month being paid out on average. Of course, trying to forecast this far into the future is tough. So it could take more or less time in reality to reach this goal.

Ongoing transformation

Another example that could be considered for this strategy is Aberdeen Group (LSE:ABDN). Over the past year, the share price is up 53%, yet it still has a high dividend yield of 7.48%.

As a fund manager, Aberdeen’s revenues are closely tied to assets under management. When markets rise, so do client portfolios and the fees earned on them. Even with the volatility in March, the stock market performance in the past year has been very strong.

This has acted to stem outflows. For 2025, the business recorded a net outflow of £1.7bn, well below the £6.1bn in the year before.

Of course, I’d like the business to be posting net inflows. A key risk going forward is continued outflows. But the company’s undergoing a strategic transformation, so investors should be patient.

It’s changing from a traditional asset manager into a broader wealth platform. The acquisition and growth of Interactive Investor has been key here, with that division now contributing a significant chunk of profits and benefiting from the DIY investing boom. In other words, Aberdeen’s becoming less reliant on struggling active funds and more exposed to structurally growing areas.

I think all of this not only means the dividend is secure, but also makes it a stock I think investors could consider.

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In the past five years alone, it has paid the same 14.6p dividend. These generated respective market-beating annual average yields of 6.1%, 7.7%, 8.2%, 10.3% and 7.1%. By contrast, the current FTSE 250 average dividend yield is 3.4%, and the FTSE 100’s is just 3.1%.

Even better — analysts forecast that it will keep paying the same dividend over the medium term, at minimum.

So, how much could I make in the coming years from my £20,000 holding in the firm?

Dividend payouts trajectory

Based on Aberdeen’s current dividend yield of 7.5%, these shares would make me £22,241 in dividends after 10 years.

 This assumes the forecast yield of 7.5%, although dividend returns can change over time — down or up. It also reflects the payouts being reinvested into the stock to harness the supercharging effect of ‘dividend compounding’.

After 30 years on the same basis, the dividends could have increased to £168,431.

At the end of this 30-year investment cycle, the total value of the holding could be £188,431 (including the original £20,000 investment). And that could deliver a yearly income of £14,132 a year from dividends alone!

Potential for share price gains too?

Aberdeen shares have dropped 15% from their 16 January one-year traded high of £2.29. The fall has compounded the undervaluation that was already there, in my view, and leaves the stock looking cheap.

Compared to its competitors’ average of 26.6, its price-to-earnings ratio of 8.8 looks a bargain. These peers comprise RIT Capital Partners at 6.4, M&G at 22.2, Legal & General at 28.7, and Bridgepoint at 49.1.

The same is true of Aberdeen’s price-to-book ratio of 0.7 against the 2.7 average of its rivals. And it is also undervalued at a price-to-sales ratio of 2.5 compared to the peer average of 2.7.

How does its earnings growth look?

Rises in any firm’s dividends and share price are ultimately driven by increases in earnings (profits). A risk here for Aberdeen is the high degree of competition in its sector, which may squeeze margins. Another is any sustained further surge in the cost of living that may prompt customers to close accounts.

However, growth momentum looked strong in its full-year 2025 results, released on 3 March this year. IFRS profit before tax jumped 76% year on year to £442m, highlighting the operational leverage resulting from the firm’s reorganisation.

This involved removing layers of middle management, reducing costs, and sharpening the product offering to clients.

Net outflows improved materially, with the £1.7bn figure representing a sharp recovery from 2024. It underlined how a stronger investment performance — 84% of assets under management outperformed the relevant benchmarks — is helping rebuild client confidence and revenue momentum.

My investment view

With its market-beating dividend yield, clear undervaluation, and earnings momentum accelerating sharply, Aberdeen looks well placed to keep rewarding long-term investors.

For me, that combination of dependable income and improving fundamentals makes the compounding case especially compelling and I will be buying more of the stock soon.

Other high-yield shares that look cheap to me have also caught my eye in recent days.

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That creates a rare window. Investors buying today aren’t just picking up shares at lower prices — they could be locking in higher income streams for decades to come.

So how much difference could acting now make to the income a portfolio generates in the future?

How small return differences drive passive income

Small changes in annual returns during the contribution phase can have a big impact on future passive income. Over time, even a small gap in performance compounds into something far more meaningful.

The chart below highlights this clearly. By contributing £10,000 each year for 20 years, two different return scenarios — 7% and 9% — lead to very different outcomes.

At first, the gap might look small, but over two decades, the difference compounds dramatically, shaping how much passive income a portfolio can generate in retirement.

Chart generated by author

After years of compounding, that 2% gap leads to a £100,000 difference in the final portfolio value. Over a 25-year drawdown it could mean roughly £5,000 more in inflation-adjusted passive income each year.

While many FTSE 100 stocks are offering attractive yields, I’ve also been looking further down the market for opportunities.

Dividends and growth

Aberdeen (LSE: ABDN) may not make headlines every day, but its forward momentum is catching my attention. The stock has fallen 13% in the recent sell-off, lifting the dividend yield up to 7.5%. Its growth prospects, however, really stand out.

The company enters 2026 with outflows from its Adviser business at less than half of last year’s levels. Meanwhile, interactive investor continues to gain traction. Its flat pricing and platform innovations are resonating with investors. A recent high-profile outage at Hargreaves Lansdown could hand interactive investor extra market share — a reminder of how crucial trust is in this industry.

Shifting asset allocation

Structural market trends also play in Aberdeen’s favour. Volatility, elevated inflation, and a global shift away from US tech are creating opportunities for its Investments division. Emerging markets, alternative assets, and undervalued regions — areas where the asset manager has deep expertise — could drive growth over the coming years.

To illustrate these shifting trends, Aberdeen’s Gold ETF started with just $10m in 2009 and now manages over $7bn.

Outflows remain a key risk. Aberdeen is targeting a return to net inflows by 2027, but if funds continue to underperform global benchmarks, it may struggle to attract new independent financial advisers to its platform. This could limit future growth and keep pressure on the share price.

Long-term thinking

When markets wobble and the future feels uncertain, savvy investors with a long-term mindset act.

Structural growth drivers remain in place across the investment landscape. The responsibility for funding retirement is increasingly falling on individuals, while the advice gap continues to widen.

Intergenerational wealth from baby boomers will see tens of trillions of pounds transferred over the next 20 years.

These forces are creating opportunities for innovative companies with strong brands that can deliver financial solutions in a complex world.

For long-term investors, this isn’t just about growth — it’s about locking in a steady passive income for decades. And Aberdeen is far from the only opportunity I’m watching.

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