When it comes to retirement, there are several different metrics that you can use to work out how much you’ll spend, and therefore how much you need saved away in your superannuation.

But what if, rating than living off your superannuation balance, you could continue earning your working wage even after you retire?

According to the Australian Bureau of Statistics, $108,352 is the average full-time earning of Australians in 2026.

If you’re able to continue generating the same income level in your retirement years, then you’ll be able to live above and beyond a comfortable retirement lifestyle.

And it’s easier than you’d think.

If you invest your superannuation wisely you could generate a passive income in retirement on par with the average $108,000 Aussie wage.

But what would it actually take?

Let’s investigate.

How much do I need in my superannuation to earn an annual passive income of $108,000?

To calculate the amount of superannuation you need, you’ll need to divide your annual passive income by the dividend yield of your portfolio.

The only issue is that the answer varies depending on what that yield is.

The general rule of thumb is, as your yield goes up, the passive income you can earn off the same balance also increases.

This means that a portfolio with a dividend yield of say, 6%, only needs to be half the size of one with a 3% dividend yield in order to earn the same amount of passive income every year.

Break it down for me by yield

If your overall superannuation portfolio has a dividend yield of around 2%, you’ll need a balance of $5.4 million.

Obviously that’s a huge figure, and out of reach for many Australians. 

But remember, as your yield increases, the required balance goes down. 

If the yield of your portfolio is closer to 3%, your balance would need to be closer to $3.6 million.

For a 4% yielding portfolio, you’d need a balance closer to $2.7 million.

Raise it a little more to 5% and you’re looking at a balance of $2.16 million. That will still generate the same $108,000 passive income every year.

At a yield of 6%, your superannuation portfolio would need to be around $1.8 million in size.

It could then go down to around $1.54 million or $1.35 million for a 7% or 8% yielding portfolio, respectively.

I’m a little risk adverse, I’d be most comfortable with investing my superannuation into 4-6% yielding ASX shares. What are my options?

It’s a wise move.

It can be tempting to go for the highest yielding shares with the expectation that you could earn that same passive income off a much smaller balance. And it’s possible, but it’s a risky investment strategy.

Generally the higher yielding ASX dividend investments are associated with more risk. Investors might be faced with lower capital growth or a fluctuating income.

But a 4-6% yield is often considered to be the “sweet spot”.

It’s the middle ground between large, stable, low-growth ASX businesses, and high-growth volatile shares. 

Companies in this bracket could be some of the major banks, defensive infrastructure shares, or energy stocks. 

For example, Telstra Group Ltd (ASX: TLS), AGL Energy Ltd (ASX: AGL), National Australia Bank Ltd (ASX: NAB), ANZ Group Holdings Ltd (ASX: ANZ), Westpac Banking Corp (ASX: WBC), Transurban Group (ASX: TCL), and Origin Energy Ltd (ASX: ORG) and all yield around the 4-6% level, at the time of writing.

The post How much do I need in my superannuation to generate a $108,000 annual passive income? appeared first on The Motley Fool Australia.

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Motley Fool contributor Samantha Menzies 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 no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The ASX dividend share Centuria Industrial REIT (ASX: CIP) looks irresistibly attractive right now. The value is compelling and the distribution yield is appealing.

This business is Australia’s largest listed domestic pure-play industrial real estate investment trust (REIT). Its industrial assets are located across key metropolitan locations throughout Australia, with a quality and diverse tenant base.

Its properties are spread across different segments of the industrial market, with 41% of portfolio value invested in distribution centres, 24% in manufacturing and production, 14% in transport logistics, 13% in data centres and 7% in cold storage.

For a few reasons, I rate this ASX dividend share as one of the best buys right now. Let’s get into those ideas.

Solid passive distribution income

It’s a difficult time for the REIT sector with rising interest rates, it’d be understandable if certain businesses in the industry have to cut their distribution payouts.

However, Centuria Industrial REIT is one of the few names that could increase the payout in FY27, which shows the quality of the underlying business.

The ASX dividend share expects to grow its annual distribution per security by 3% to 17.3 cents in FY27, following a 3% rise of the distribution in FY26.

At the time of writing, the FY27 projected payout translates into a forward distribution yield of 6.2%, which looks better to me than what term deposits are offering at the moment.

Huge valuation discount

One of the easiest ways to look at the valuation of a REIT is by looking at net asset value (NAV), which is a reflection of the total net value of the property values, the loans, the cash and so on.

Higher interest rates are a (short-term) headwind for property prices, but Centuria Industrial REIT has demonstrated that investors can have a good level of confidence in the NAV figure.

In the first quarter of FY27, being the three months to September 2026, it sold 22 Hawkins Crescent in Bundamba (Queensland) for $34.25 million, which was in line with the balance sheet value (which was part of the NAV). This sale mitigates the potential for extended vacancy risk and reduces exposure to a large-box, urban-fringe asset.

It reported net tangible assets (NTA) per unit of $4.01, so it’s trading at an NTA discount of 31%, at the time of writing.

Future rental income growth

A lot of income growth could occur in the next few years for the business, which is one of the main factors that’s attractive about this ASX dividend share.

During the first quarter of FY27, it leased around 25,000sqm of industrial space across seven deals. The FY27 re-leasing spreads averaged 31%, meaning the rent is now 31% higher in the new leases compared to the old leases.

The REIT estimates that the portfolio is approximately 17% under-rented on average, suggesting a significant runway for future rental growth beyond FY27.

Additionally, it has signed Australia’s largest renewable energy deal among domestic commercial property landlords with leading local distributed energy infrastructure partner Energy Bay, which means it can commercialise its substantial roof space without any capital expenditure and generate a future income stream.

This partnership could also allow the ASX dividend share to offer renewable energy solutions to its tenants.

Centuria Industrial REIT has guided that its rental profit (FFO – funds from operations) could grow up to 5.5% in FY26, which is impressive in the current environment.

The post 3 reasons why this ASX dividend share is an unmissable buy today appeared first on The Motley Fool Australia.

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• Centuria Industrial REIT earnings: Leasing momentum and guidance reaffirmed
• How much is needed in superannuation to target a $7,500 monthly passive income?
• Where to invest $10,000 in ASX dividend shares today
• How much is needed in superannuation to target a $100,000 annual passive income?
• How much do I need to retire on $85,000 a year at 50?

Motley Fool contributor Tristan Harrison 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 no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Zip Co Ltd (ASX: ZIP) share price is in focus after the company announced plans for a 5-to-1 consolidation of its fully paid ordinary shares, aiming to better align its share count with its market position.

What did Zip Co report?

• A proposed share consolidation on a five (5) for one (1) basis, reducing the number of ordinary shares significantly.
• Pre-consolidation: 1,245,921,802 fully paid ordinary shares; post-consolidation: approximately 249,191,788.
• All existing performance rights, restricted rights, and employee options will also be adjusted on a 5-for-1 basis.
• The consolidation requires shareholder approval at the 2026 Annual General Meeting on 19 November 2026.
• The move is not expected to affect the underlying value of Zip or total value of each shareholder’s holdings.

What else do investors need to know?

The Board believes consolidating Zip shares will result in a more typical capital structure for a company of Zip’s size. Management expects this could improve the appeal of Zip’s shares to a broader range of investors, possibly making the company’s shares easier to compare with other ASX-listed peers.

Should the consolidation proceed, holders of performance rights, restricted rights, and employee options will see corresponding adjustments. No action is required by shareholders or holders of these securities at this stage, as the company will provide written confirmation of adjusted balances after implementation.

What’s next for Zip?

If approved, the share consolidation is scheduled to take effect in late November 2026, with trading of the post-consolidation shares commencing from 23 November on a deferred-settlement basis, and normal trading expected to resume on 2 December 2026. Shareholders are encouraged to review the Notice of Meeting and monitor further announcements for any timetable changes.

The Board has unanimously recommended shareholders vote in favour of the consolidation, stating it will not affect the underlying value or proportionate shareholdings in Zip.

Zip share price snapshot

Over the past year, Zip shares have declined 53%, trailing the S&P/ASX 200 Index (ASX: XJO), which has fallen 4% over the same period.

View Original Announcement

The post Zip to consolidate shares 5-for-1 in 2026: What shareholders need to know appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart 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 no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.