There are two huge benefits to investing in a Stocks & Shares ISA as far as I am concerned. The first most people know — it is exempt from income and capital gains tax. The second is less well known, but crucial — it has no age-related restrictions on withdrawals.

So unlike private pensions, ISA investors are not forced to wait until 55 to access their hard-saved money. And this minimum age limit will be raised to 57 from April 2028. In my view, it is my money and I should be able to access it whenever I choose!

Earlier access to private pension funds is available due to severe ill health, but this must be proven. Feigning a limp just will not cut it.

So what sort of returns have I targeted in recent ISAs?

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Why is a 7% minimum annual return important to me?

I can receive a 5.2% yearly yield now with no risks attached — from 10-year UK government bonds.

This is known as the ‘risk-free rate’ because it is backed by the UK government. And it has never failed to pay interest or principal on such bonds. Less widely known again is that these bonds can be included in a standard Stocks and Shares ISA.

Consequently, I want compensating for the additional risk of investing in shares. And I think another 1.8% or so on top of the risk-free rate is reasonable.

What stock’s caught my eye recently?

Tech-led savings company MONY Group (LSE: MONY) — previously Moneysupermarket.com — was flagged on my screener recently.

This under-the-radar business has an asset‑light model, rising cash flows and a long record of dependable, high dividends. Additionally, its relative anonymity has kept its share price lower than business fundamentals justify, creating a striking valuation gap.

A risk for MONY is more aggressive pricing or promotional activity from rivals that could squeeze its margins. Another is a shift in insurer commission structures, which might reduce the revenue earned per policy, even if customer volumes hold steady.

Nevertheless, analysts forecast its earnings will rise by a strong average of 7.4% over the medium term. And this supports dividend rises and share price gains over time.

How much dividend income in the ISA?

Analysts expect MONY’s dividend yield to rise from the current 7.2% to 8.1% by end-2028. Using this latter forecast figure as an average — although it could go down or up over time — results in £24,836 in dividends after 10 years and £205,330 after 30 years.

The numbers assume an initial £20,000 investment to fully utilise the ISA allowance. It also factors in the dividends being reinvested to harness the full power of dividend compounding.

By the end of 30 years — the final point of a standard investment cycle — the total value of the holding would be £225,330.

And that would give an annual income from dividends alone of £18,252 — or £1,521 a month.

I already hold several ultra-high-yield stocks in my ISAs but may well still add this one to next year’s ISA.

Simon Watkins does not hold any positions in the companies mentioned.