You can even pass on your unused plot to a spouse or civil partner when you die. It’s a brilliant way to build a second income stream for retirement. But how large would an ISA need to be to generate £1,000 a week in income?

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.

That’s a nice round number but it’s also ambitious. It works out at £52,000 a year. Imagine getting that on top of your State Pension. You’d be nicely sorted. How much you need to generate it depends on the dividend yield produced by the underlying shares. Here’s a rough guide:

• 4% yield – £1.3million
• 5% yield – £1.04million
• 6% yield – £867,000

Those are substantial sums, but then so’s the income. More than 5,000 Britons are already Stocks and Shares ISA millionaires, showing it can be done. Someone who invested £500 a month for 30 years, and increased their contribution by 3% annually, would end up with £1.29m. This assumes average annual return of 9.5%, which is the average total return on the Stocks and Shares ISA over the last decade. You might get more, you might get less.

Could this FTSE 100 bank help investors get there?

One stock I’ve just bought is NatWest Group (LSE: NWG). Like many FTSE 100 banks, it offers both dividend income and share price growth potential.

The shares dipped after first quarter results on 1 May slightly missed expectations. Yet profits still rose 12%, while management upgraded guidance for 2026. I saw the brief sell-off as the buying opportunity I’ve been waiting for.

Over five years, NatWest shares have surged 180%. Even after that spectacular run, they still look reasonably valued with a price-to-earnings ratio of just 8.8.

The trailing dividend yield stands at 5.5%, but NatWest’s dividend policy is progressive too, which means investors may enjoy rising income over time. Forecasts suggest the income could exceed 6% this year and rise to 6.7% next year.

NatWest can afford to be generous. Profits have been climbing steadily:

• 2025 – £7.7billion
• 2024 – £6.2billion
• 2023 – £5.6billion
• 2022 – £5.1billion
• 2021 – £3.8billion

What risks should investors be aware of?

NatWest remains heavily exposed to the UK economy. If inflation and unemployment rise further, bad debts could increase while borrowing demand weakens. The sector also faces political risks. Given the scale of bank profits today, governments may decide lenders can withstand another windfall tax. NatWest shares are still up 14.7% over one year, but the pace of gains has slowed.

Even so, I still think NatWest could be worth considering for long-term Stocks and Shares ISA investors seeking both income and growth. The valuation remains reasonable, profits are strong, and shareholders are being rewarded generously.

I’m keeping a close eye on the stock and may well add to my holding if markets wobble this summer.

Should you invest £5,000 in NatWest Group Plc 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 NatWest Group Plc made the list?

Harvey Jones owns shares in NatWest.

The post How much is needed in a Stocks and Shares ISA for a £1,000 weekly passive income appeared first on The Twelfth Magpie.

However, there may be much more to come. The bank’s earnings momentum remains robust, with rising profits, expanding net interest income and a strengthening balance sheet. Cost discipline is driving higher returns, while buybacks are shrinking the share count and amplifying earnings per share growth.

Together, these drivers highlight a business generating robust cash flow and trading on a valuation that still looks unusually low for a major UK bank. So what sort of return might investors expect?

Future price gains?

Asset prices tend to trend toward their ‘fair value’ over the long run. And that value reflects the business’s true fundamental worth, not the more subjective and shorter‑lived signal of price.

To estimate any stock’s fair value, discounted cash flow (DCF) projects a firm’s future cash flows and discounts them to today. Greater uncertainty in those forecasts increases the discount rate applied to those cash flows.

This, and other DCF assumptions, can vary by analyst, causing different fair value outcomes. But using my own inputs — including an 8.5% discount rate — shows NatWest shares are 56% undervalued at their current £5.87 price.

That places fair value around £13.34, more than twice today’s price.

So if markets continue to correct price-to-value gaps, this could represent an outstanding buying opportunity if those DCF assumptions hold.

Dividend income gains?

Analysts forecast NatWest’s current 5.8% dividend yield will rise to 7.9% by 2028, although these payouts can go down as well as up.

So over 10 years on the forecast 7.9% yield, a £20,000 investment could generate £23,954 in dividends. The figure also assumes the dividends are reinvested in the stock to utilise the full turbocharging effect of dividend compounding.

Over 30 years — the length of a standard long-term investment cycle — this could rise to £192,293. Including the initial £20,000 investment, the holding could be worth £212,293 by then.

And this would generate a yearly income from dividends alone of £16,771!

Solid business growth?

Any long‑term return ultimately depends on the strength of the underlying business. A risk here for NatWest is any sharp fall in interest rates that would reduce net interest margins. Another would be a deterioration in credit conditions, which could increase customer loan defaults.

However, in its 1 May-released Q1 2026 results, total income rose 9.5% year on year to £4.358bn. The increase was supported by strong deposit‑margin expansion and continued lending growth.

Operating profit before tax increased 12.2% to £2.03bn, highlighting disciplined cost control and efficiency gains. Net interest margin rose 20 basis points to 2.47%, reflecting an improved balance‑sheet mix.

My investment view

NatWest has delivered exceptional returns over the past three years. But the valuation, dividend outlook and earnings momentum suggest the story may still be far from over.

With profits rising, cash flow strengthening and the shares trading well below fair value, the long‑term investment case remains compelling for me. So I will be buying more of the stock very soon.

For the same reason, I think it worthy of other investors’ consideration.

Should you invest £5,000 in NatWest Group Plc 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 NatWest Group Plc made the list?

Simon Watkins owns shares in NatWest.

The post £20,000 invested in this FTSE 100 banking gem three years ago is now worth… appeared first on The Twelfth Magpie.

Cash is useful for short-term savings you might need in a year or two. But it’s a terrible place to build retirement wealth over decades. Instead of creating wealth, it will be steadily eroded by inflation.

Do stocks work your money harder than savings?

Stock markets may be volatile in the short term, but over longer periods they’ve consistently delivered stronger returns than cash. Figures from Moneyfacts make the case perfectly.

Over the last 10 years, the average Cash ISA returned just 1.79% a year. At that rate, £12,000 would have grown to £14,330 over that decade. Yet inflation was higher over that period, averaging 2.92% over the same period, meaning savers have lost spending power in real terms.

By comparison, the average Stocks and Shares ISA returned 6.79% annually, well above inflation. That would have turned the same £12,000 into £23,147. And if you stretch the timeline further the gap becomes enormous.

Over 30 years, a Cash ISA growing at 1.79% reach £20,433. A Stocks and Shares ISA returning 6.79% would have ballooned to £86,119. That’s why I’d always favour shares for long-term investing.

Are NatWest shares worth considering?

Many investors like the growth and income offered by FTSE 100 dividend stocks. Earlier this month, I bought shares in NatWest Group (LSE: NWG).

Its shares had just dipped after first-quarter results on 1 May, which were slightly poorer than expected, despite profits rising 12% and management increasing guidance for 2026. I saw that temporary dip as a buying opportunity.

NatWest shares are up a pretty impressive 181% over the last five years, although lately the growth has slowed. Over the last 12 months they’ve climbed a more modest 11.5%. Like the rest of the sector, they’ve been hit by the conflict in Iran.

But NatWest isn’t just about the share price. It also boasts a hugely generous dividend. The shares are forecast to yield 6.2% in 2026. That’s expected to hit 6.9% next year.

Despite strong recent performance, the valuation today remains pretty tempting. The forward price-to-earnings ratio stands at just 8.2. Profits have been rolling along nicely too:

• 2025 – £7.7bn
• 2024 – £6.2bn
• 2023 – £5.6bn
• 2022 – £5.1bn
• 2021 – £3.8bn

There are risks, of course. NatWest is tied to the UK economy. If inflation and unemployment keep climbing, borrowing demand could weaken while bad debts may increase. FTSE 100 banks also face political risks. Given those big profits, they would make an easy target for a windfall tax raid.

Even so, I still think NatWest is well worth considering with a long-term view. I’m keeping a close eye on the shares and may well top up my holding if another opportunity presents itself this summer.

Should you invest £5,000 in NatWest Group Plc 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 NatWest Group Plc made the list?

Harvey Jones owns shares in NatWest Group 

The post £12,000 saved in a Cash ISA 10 years ago is now worth… appeared first on The Twelfth Magpie.

Folks bought more than twice as many NatWest shares as Rolls-Royce, and nearly four times as many as Nvidia!

What’s going on here? Are investors seeing the 20% fall in share price as an unmissable buying opportunity? Does the FTSE 100 bank truly deserve its place as the most popular stock (for now, at least)?

Why the frenzy?

While reading the mind of every single Stocks and Shares ISA holder is still (hopefully) beyond our scientific reach, there are a few clues to the mystery here.

The first is a large pullback on a stock that’s been flying. The bank booked a 12% increase in year-on-year operating profit for Q1 2026, beating analyst consensus in the process. And the share price? It’s down 20% since a high in January. Simply, investors might be looking at a great chance to buy in at a mega discount.

The drop’s made shareholder returns look ever better too. The forward dividend yield’s jumped to 6.42%. That puts it near the top of the Footsie big dividend payers. The dividend’s set to rise in the years ahead too.

And let’s not forget the big share buyback process which should create some upward pressure on the share price as well. The £750m buyback programme could mean Natwest offers that holy grail of big dividends combined with share price appreciation.

Is it a buy?

Of course, that share price dip didn’t come out of nowhere. The 20% fall – equivalent to over £10bn in market-cap – came in the wake of the conflict in Iran which looks set to increase inflation and dampen economies around the world. This could create an undesirable environment for the banking sector.

As one of the more British-focused of the FTSE 100 banks, NatWest is dealing with a few domestic issues too. On the one hand, the recent economic data of the UK being the fastest-growing economy in the G7 – with a 0.6% GD increase in the latest three months – is welcome news.

On the other, the leadership challenge to a prime minister who hasn’t celebrated his second anniversary in the job isn’t so welcome. Few companies like this kind of instability and banks especially so.

The last word? Only time will tell if the recent buying frenzy for NatWest shares turns out to be investors snaffling a bargain opportunity or simply catching a falling knife. I think there’s enough to like here for this to be stock worth considering however.

John Fieldsend has positions in Rolls-Royce and Nvidia. The Twelfth Magpie has recommended Rolls-Royce, Nvidia and Aj Bell Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor and Hidden Winners.

The post Why is everyone buying NatWest shares? appeared first on The Twelfth Magpie.

I might be in a position to explain, because I’ve been buying NatWest shares too. And no, I wasn’t following the herd. I made that decision all on my own. Unusually for me, it was a split-second decision too. No dithering.

Is this FTSE 100 bank a brilliant bargain?

The date was 1 May. NatWest had just posted Q1 results. At first glance, they looked decent enough, with profits climbing 12%. The board even raised 2026 income guidance. But markets chose to fret over revenue growth, impairment charges and the slowing UK economy. The shares fell 4.5%. I saw my chance to grab them at a cut price, and took it.

This is something I’d wanted to do for months. Like the rest of the FTSE 100 banks, NatWest shares have been bombing along in recent years. Despite that one-day dip, they’re still up 185% over five years, thanks to a steady climb in profits. Check this out:

• 2025 – £7.7bn
• 2024 – £6.2bn
• 2023 – £5.6bn
• 2022 – £5.1bn
• 2021 – £3.8bn

Yet suddenly, this blue-chip profit machine was trading on a dirt-cheap price-to-earnings ratio of 7.7, with a forecast yield of 6.57%. How could I resist? And that’s why I reckon investors are chasing NatWest shares. Because they look like a cracking bargain, with a fantastic rate of income attached.

Those two stellar numbers have eased slightly since then. The forward P/E has crept up to 8.1, while the 2026 forecast yield has slipped to 6.32%. That simply reflects a modest share price rise of around 2.7% since results day. I should maybe point out that all of the big banks still trade on relatively low forward valuations today:

• Barclays – 7.9
• HSBC Holdings – 10.5
• Lloyds Banking Group – 10.3
• NatWest – 8.1

So is NatWest a stone-cold, no-argument buy? Let’s calm down a little, because there are always issues to take into account when buying shares.

Are there risks to buying this stock today?

NatWest remains heavily exposed to the UK economy. If inflation and unemployment keep rising, mortgage demand could fall and default rise. Profits could be squeezed.

There’s also the risk of fresh windfall taxes on the banking sector. Voters still haven’t forgiven the banks for the financial crisis, and politicians are short of cash. And here’s another concern. Bond yields are rising, which means investors can get a higher rate of income, without putting their capital at risk by purchasing shares. That could hit demand for dividend stocks.

Personally, I’m not expecting the NatWest share price to resume its explosive momentum. Growth has clearly slowed lately, with the shares up just 12% over the last 12 months. But I’m thrilled to have bought NatWest at the price I did, and I can see exactly why investors have been piling in. I’ll be watching its progress closely over the summer and, if volatility strikes again, I may well top up my stake. You might want to keep an eye on it too.

The post Why is everybody suddenly buying NatWest shares? appeared first on The Twelfth Magpie.

Growing numbers of Britons have second jobs or side hustles. But it’s possible to get a secondary source of income, and with a lot less effort, by investing in a spread of FTSE 100 shares.

UK blue-chip stocks pay some of the most generous dividends in the world. It’s passive income, and it can really build over time.

How can I use stocks to boost my spending power?

Time is the key word here. While you can generate dividend income almost from day one, by purchasing a top dividend income stock, it takes time to grow into something really worth having.

Let’s say someone’s aiming for an income of £14,713 a year. I’ve chosen that number because it’s the average wage from a UK part-time job. How much investors need in their ISA to earn it depends on the overall yield.

While the FTSE 100 has an average yield of 3.3%, it’s possible to get as much as 5%, 6% or 7% from a spread of more generous dividend stocks. The higher the yield, the less money you need to hit that second income target.

• 5% – £294,260.
• 6% – £245,217.
• 7% – £210,186.

So how long does it take to generate the middle of those three figures – £245,217? Let’s assume someone has a timeline of 30 years. This may seem lengthy, but that’s how investment wealth’s built. Slowly, over time.

If they tuck away £175 a month, and their portfolio grew at an average rate of 8% a year, they’d have £256,926. Ideally they should invest more, as inflation will erode its real value over time. But where to start?

Is this dividend stock worth buying today?

I’ve just added this top income stock to my own portfolio: NatWest Group (LSE NWG). It’s forecast to yield a stunning 6.4% this year. The forward yield for 2027’s nearly 7.2%.

The NatWest share price has had a stunning run. It’s up 198% over the last five years, with dividends on top. However, the shares have been volatile of late, as investors fret over both the Iran war and political shenanigans at Westminster.

On 1 May, NatWest reported a healthy 12% increase in first quarter profits and raised its income guidance for 2026. That wasn’t enough to calm investors. Markets are worried about threats such as loan impairments, windfall taxes, rising mortgage rates and the potential for a recession, or even stock market crash.

We live in uncertain times, but I think the risks here are more than offset by NatWest’s incredibly low forward price-to-earnings ratio of just 7.9. I think it’s one of the most compelling income and growth opportunities on the FTSE 100 right now.

I’ll be watching the stock carefully to see how it weathers current storms, while reinvesting every dividend I receive to build my stake over time, and generate even more income one day.

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That’s currently the national average full-time salary, and adds up to £39,884 a year. That’s a handy sum to have in retirement, on top of the State Pension and any other income sources. How can you generate that?

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.

A popular choice for long-term Stocks and Shares ISA investors is to build a diversified spread of FTSE 100 shares offering both dividend income and growth. But how much would it actually take to generate that level of income? The answer depends heavily on the portfolio’s yield. 

How much capital do I need?

• 4% – £997,000.
• 5% – £797,680.
• 6% – £664,733.

That’s not the kind of money you can build overnight. It demands investing regularly every month and sticking with it for decades, while re-investing every dividend you receive to let compounding do its work. The next question is this, which shares can help drive that growth and income? 

A stock I think investors might consider is FTSE 100-listed bank NatWest Group (LSE: NWG). The NatWest share price has had a terrific run, shaking off lingering memories of the financial crisis to climb 199% over five years. It’s been caught up in recent volatility though, falling more than 5% in the last month.

On 1 May, NatWest also posted a 12% rise in first-quarter profits and lifted 2026 income guidance. I thought the results were pretty good, but markets had hoped for more. They were also wary of a potential £140m impairment linked to Iran exposure. The shares fell more than 5% on the day. I bought them.

NatWest’s heavily tied to the UK economy, and if economic growth slows, loan impairments could rise while mortgage activity weakens. Like all of the big FTSE 100 banks, it also faces competition from smaller but nimbler ‘challenger’ banks.

NatWest has a really eye-catching dividend

I thought NatWest shares were too cheap to resist. And I still do. Today, the forward price-to-earnings ratio is just 8.2. By comparison, the average FTSE 100 P/E is around 15. But here’s the big attraction.

NatWest’s a top income stock. It currently has a bumper forward yield of around 6.2%, which is forecast to hit nearly 7% in 2027. I think that’s stunning. Investors can underrate the impact of reinvested dividends. Over time, they can make up roughly half of an investor’s total return.

When they’re this big, it could be even more. Dividends are never guaranteed, of course. The board is also running a £750m share buyback, further boosting shareholder returns.

Investors should look to build a balanced portfolio of around 15 stocks. Passive income seekers they might want to focus on more generous yielders like NatWest. I can see plenty more high-yield dividend heroes out there today.

The post How much does an ISA investor need to target a £767 monthly income? appeared first on The Twelfth Magpie.

3 reasons why I like FTSE 100 banks today

• They’re making big money. None more so than Asia-focused HSBC Holdings. It made a massive $32.3bn profit in 2024, and while that dipped to $29.9bn last year, it’s still an awful lot.
• Shareholders are being rewarded. UK banks are generating plenty of cash, with the big five returning more than £31bn in dividends and £14.1bn in share buybacks in 2025 alone.
• They still look good value. Despite their strong share price growth, FTSE 100 banks boast low forward price-to-earnings (P/E) ratios. Barclays has a forward P/E of around 8.6, well below today’s FTSE 100 average of 14.5.

3 reasons why they worry me

• The world’s on edge. The rising oil price risks pulling us into a global recession. The banks won’t escape the fallout, hitting demand for loans and driving up debt impairments.
• Shadow banking threat. HSBC and Barclays have taken big hits from their exposure to London-based shadow bank Market Financial Solutions, which collapsed in February amid allegations of fraud. HSBC lost £295m, Barclays £228m. There could be more shadowy threats out there.
• Interest rate risk. Banks do well when interest rates rise, because this allows them to widen their margins. Rates looks set to rise again as inflation returns, but when the cycle turns, profits will shrink.

There are always short-term risks. But I’m looking to build a portfolio of dividend growth stocks for retirement. Any stock I buy today, I hope to hold for at least 20 or 30 years. Today’s low P/Es offer another safety net.

Here’s why I bought NatWest shares

I already hold Lloyds, so that was off my shopping list on diversification grounds. I was tempted by Barclays, but worried about its shadow banking exposure. Then last Friday (1 May), NatWest (LSE: NWG) shares plunged almost 4.5%, and I swooped.

NatWest posted a 12% increase in Q1 profits and raised 2026 income guidance, but that wasn’t enough. Markets had hoped for more, and feared revenue growth might prove shaky. They were also spooked by a potential £140m impairment charge, due to Iran. I dismissed those as short-term issues, and pounced. Frankly, how could I resist?

I was bagging a top bank with a dirt cheap forward P/E of just 7.7. Following the one-day dip, the forecast yield had climbed to 6.57%. That’s expected to hit 7.39% next year. It’s a stunning rate of income, if not guaranteed.

My biggest concern is that NatWest has a very similar risk profile to Lloyds. Both are heavily exposed to the UK economy, which isn’t exactly thriving. Yesterday (5 May) I balanced that by buying another cut-price FTSE 100 bank, this time one with global exposure. Under The Motley Fool trading rules I can’t say what it is for a couple more days. But I think it’s just as exciting as NatWest.

The post I’ve just bought this bargain-priced FTSE 100 bank and it’s not Barclays or Lloyds appeared first on The Twelfth Magpie.

Its latest updates have shown steadily rising earnings, a stronger balance sheet, and increasingly generous returns to shareholders. And all while the shares continue to trade at a hefty discount to their long‑term fundamentals.

So, following its latest Q1 numbers, is now the moment for me to snap up more of the stock while it still looks cheap?

How do the growth drivers look?

A risk to NatWest’s growth momentum is increased competition in its key mortgages and deposits operations, which could squeeze its margins. Another is any worsening in the UK’s economy that could increase defaults on lending, increasing impairment charges.

Nonetheless, analysts forecast its earnings will grow by an average 4.6% a year over the medium term at least. This looks well supported to me by its Q1 2026 figures released on 1 May, if not a significant underestimate.

Total income jumped 9.5% year on year to £4.36bn, helping boost profit before impairment losses 15.7% to £2.32bn. The figures underline the continued benefit of deposit‑margin expansion and lending balance growth, which are set to remain key earnings drivers.

Operating profit before tax surged 12.2% to £2.03bn, highlighting strong deposit margin expansion and broad‑based lending growth. And earnings per share soared 15.5% to 17.9p, reflecting robust capital generation and balance‑sheet strength.

Together, these trends show NatWest entering 2026 with firm momentum behind it and further earnings growth ahead.

What does this mean for the valuation?

A share’s price reflects whatever number buyers and sellers are willing to agree on at a given moment. But its value is determined by the underlying strength and prospects of the business itself.

Over time, market prices tend to move back toward a company’s true worth (‘fair value’). This is why being able to quantify this gap is crucial for long-term investors’ profits.  

Discounted cash flow (DCF) analysis determines what a stock is truly worth by forecasting future cash flows and discounting them back to today’s value. When those forecasts are less certain, investors demand higher returns, which increases the discount applied.

Differing assumptions mean analysts’ DCF outcomes can vary. Using my own approach — including an 8.3% discount rate — NatWest looks 57% undervalued at its current £5.45 price.

That implies a fair value of £12.67 — more than double the present level. If markets continue to correct this price-to-value gap over time, this could be an excellent opportunity if those DCF assumptions hold.

My investment view

NatWest looks extremely well placed to me to generate the earnings growth needed to drive a meaningful rise in its share price over time.

Analysts also expect the dividend to keep rising, with forecast yields reaching 7% next year and 7.6% in 2028. These are more than double the current FTSE 100 average of 3.1%. And this constitutes a powerful income component to add to the valuation case for investment.

It is more than enough to cause me to buy more at the earliest opportunity. And I also have my eye on other very underpriced, high-yield stocks in other sectors too.

The post Around £5 now, here’s why this FTSE banking giant looks a bargain buy anywhere below £12.67 appeared first on The Twelfth Magpie.

Whether an investor is 30, 40, 50, or older, a Self-Invested Personal Pension is a brilliant way to build a pot of passive income for when they stop working. It complements a Stock and Shares ISA nicely, because the tax breaks come at the beginning, in the shape of upfront tax relief on contributions. With an ISA, they come at the end, as tax-free returns.

Brilliant pension tax breaks upfront

Each £100 that goes into a SIPP only costs a basic rate taxpayer £80 after tax relief, falling to just £60 for a higher rate taxpayer. Withdrawals in retirement are taxable, but 25% can be taken 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.

Today, the new State Pension pays a maximum £12,547.60 a year. So what would a SIPP investor need to double that, and generate a second income of £25,095.20?

Let’s assume they invest in a spread of FTSE 100 and FTSE 250 shares that pay generous dividends, and get a 5% yield from their SIPP. In that scenario, they’d need £501,904. If they took 7% of their portfolio as income instead, which might involve dipping into the capital, they’d get the same income from £358,500.

Building wealth like that takes time, but tax relief makes it easier. Either way, there’s no time to lose.

Today looks like a terrific time to buy FTSE 100 shares, with the market knocked back by volatility in the Middle East. Top stocks are now trading at notably lower valuations.

I think NatWest shares look fabulous value

NatWest (LSE: NWG) shares have fallen more than 14% in the last month. Despite that slip, they’re still up 165% over the last five years. That would’ve turned a £10,000 investment into £26,500. Or comfortably over £30,000 with dividends reinvested.

Like all the big banks, NatWest has been making bumper profits due to higher interest rates, which have boosted margins between what they pay savers and charge borrowers. In 2025, operating profit before tax jumped 24.4% to £7.7bn. That stellar number was reported on 13 February. Two weeks later, the Iran war kicked off. NatWest fell back but now looks stunning value, with a price-to-earnings ratio of just 8.85. I struggle to believe that such a profitable enterprise could offer that much value. Especially since it offers a bumper trailing yield of 5.65%. What’s going on here?

No stock is without risk. It’s a UK-focused bank, and our economy isn’t in the best of health. That could hit demand for mortgages and drive up bad loans. Even so, I think NatWest looks a compelling opportunity to consider.

If the Iran conflict drags on, the shares could get even cheaper but frankly, I think they look terrific value today. The only thing stopping me is that that my SIPP already holds a big position in rival FTSE 100 bank Lloyds, which has a similar UK focus. That’s not a problem, because I can see plenty more terrific bargains out there today.

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