Top retirement shares for Australian investors to buy now

ASX investors who are looking to add shares to a retirement portfolio probably have some very specific criteria to fulfil. Retirement shares need to pay out an income stream, for one. But that income stream also needs to be dependable and reliable, and preferably include full franking credits.

Ideally, a retirement will last two to three decades, or perhaps even longer if one is lucky. As such, retirement shares also need to offer longevity, with a business model that has proven to be able to stand the test of time. As well as other, shorter-term maladies such as inflation and economic recessions.

With all of that in mind, here are two ASX stocks that I think fulfil all of these criteria and would make for top retirement shares.

Two top ASX retirement shares to buy in 2026

Coles Group Ltd (ASX: COL)

Coles is an ASX stock we’d all be reasonably familiar with. This company runs the second-largest supermarket network in the country, as well as the Liquorland bottle chop chains. When considering the criteria we discussed above, Coles ticks all of the boxes.

Its consumer staples business model is mature and established, even growing market share at the expense of its arch-rival Woolworths Group Ltd (ASX: WOW) in recent years. Customers need to buy food and household essentials, regardless of the economic weather. This means that Coles has a highly defensive earnings base from which to pay its fully franked dividends. Speaking of dividends, Coles has managed to deliver an annual dividend hike every year since its 2018 ASX listing.

I see no reason why this company won’t be a reliable dividend payer in 10, 20 or even 30 years’ time. As such, I would happily buy it as a top retirement share today.

Telstra Group Ltd (ASX: TLS)

Our next retirement share is the ASX 200 telco Telstra. I think Telstra’s appeal as a retirement share is similar to that of Coles, despite the two companies selling starkly different products.

As the largest and most dominant provider of telecommunication services in Australia, Telstra possesses a wide economic moat. Its mobile network is universally acknowledged as the best in the country, with many Australians in rural and regional areas having no alternative to Telstra. This has allowed the telco to remain the preferred choice for both mobile and fixed-line services for decades.

Given the importance of connectivity to our economy is only growing, Telstra should remain in a position to be able to translate its defensive, inelastic cash flows to strong and stable dividends (which always come fully franked) for years to come.

The post Top retirement shares for Australian investors to buy now appeared first on The Motley Fool Australia.

More reading

• An ASX dividend stalwart every Australian should consider buying
• Expecting a down year for the ASX? Here’s 3 ASX defensive shares to target
• My 10 top stocks to buy to start the New Year off right
• How I’d build a growing passive income stream from ASX shares over 15 years
• Forecast: Here’s what $10,000 invested in Telstra shares could be worth next year

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Telstra Group and Woolworths Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.