Superannuation can be a great place to build passive income for retirement.

The tax settings can be attractive, the investment time horizon is long, and investors have the ability to reinvest returns for years before they need to draw on the money.

But how much would someone actually need in superannuation to target a $3,000 monthly passive income?

Let’s break it down.

How much is $3,000 per month?

A $3,000 monthly passive income works out to $36,000 per year.

That could make a meaningful difference in retirement. It could help cover groceries, insurance, bills, travel, healthcare, or provide extra breathing room alongside the Age Pension or other income sources.

To achieve this, the amount needed in superannuation depends on the dividend yield generated by the portfolio.

A simple way to estimate it is to divide the annual income target by the portfolio yield.

How much superannuation is needed?

If a superannuation portfolio generated a 3% yield, an investor would need around $1.2 million to earn $36,000 per year in passive income.

At a 4% yield, the required balance falls to around $900,000. A portfolio yielding 5% would need approximately $720,000, while a 6% yield would require about $600,000.

That is a wide range, but it shows how much the yield changes the equation.

A lower-yielding portfolio may require more capital, but it could offer stronger growth or lower income risk. A higher-yielding portfolio can make the income target look easier, but it may come with greater risk.

Should you aim for the highest yield?

It can be tempting to focus only on the biggest dividends.

But that can be a mistake. A very high dividend yield can sometimes be a warning sign. The market may be expecting the dividend to fall, or the company could be facing pressure from weaker earnings, debt, regulation, lower commodity prices, or a difficult cycle.

The best approach is arguably to think about income that is sustainable. That means looking for ASX shares with reliable cash flow, manageable payout ratios, robust balance sheets, and business models that can keep supporting dividends over time.

It is important to remember that a $3,000 monthly passive income target is not just about getting paid next year. It is about building an income stream that can last through retirement.

What ASX shares could help?

ASX shares can be attractive inside superannuation because many pay dividends and some offer franking credits.

Lower-yielding blue chips such as Wesfarmers Ltd (ASX: WES), Woolworths Group Ltd (ASX: WOW), and Washington H. Soul Pattinson and Co Ltd (ASX: SOL) may be good options for investors who want quality and long-term dividend growth potential.

Shares such as Telstra Group Ltd (ASX: TLS), APA Group (ASX: APA), and Transurban Group (ASX: TCL) can provide exposure to telecommunications and infrastructure-style cash flows.

Property trusts such as Charter Hall Long WALE REIT (ASX: CLW) and Charter Hall Retail REIT (ASX: CQR) can also play a role. And investors willing to accept more cyclicality might look at names such as Harvey Norman Holdings Ltd (ASX: HVN) or Universal Store Holdings Ltd (ASX: UNI), which can offer attractive fully franked dividends when trading conditions are supportive.

Foolish takeaway

Aiming for $3,000 per month in passive income from superannuation is achievable, but the required balance depends heavily on the portfolio yield.

At a 5% yield, the rough target is around $720,000. At 6%, it falls to around $600,000.

The best answer may sit somewhere between growth and income. A portfolio that combines quality dividend shares, infrastructure, property income, and some dividend growth potential could give retirees a better chance of building an income stream that lasts.

The post How much is needed in superannuation to target a $3,000 monthly passive income? appeared first on The Motley Fool Australia.

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• How much could a $100,000 ASX share portfolio pay in dividends?
• How much does Morgan Stanley think Wesfarmers shares will fall?
• 3 shares with above-average dividend yields to supplement your superannuation

Motley Fool contributor James Mickleboro has positions in Universal Store and Woolworths Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Transurban Group, Washington H. Soul Pattinson and Company Limited, and Wesfarmers. The Motley Fool Australia has positions in and has recommended Apa Group, Charter Hall Retail REIT, Harvey Norman, Telstra Group, Transurban Group, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Universal Store and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Trying to keep up with Zip Co Ltd (ASX: ZIP) shares has become a challenge even for seasoned investors.

The buy now, pay later (BNPL) stock finished Wednesday down 5% to $2.65. That leaves the shares down around 15% over the past five trading days, 19% for the year to date, 10% over the past 12 months, and roughly 45% below their October peak.

So, what’s behind the wild swings, and what should investors be watching next?

The business is improving

Despite the volatile share price, Zip’s underlying business is arguably in the strongest position it has been in for several years.

The company is growing again, profitability is improving, analysts have become more constructive, and management continues to buy back shares under its $50 million on-market buyback program.

Just as importantly, investors are now paying closer attention to earnings rather than simply transaction growth.

That shift has worked in Zip’s favour as stronger revenue increasingly translates into higher profits.

Strong momentum continues

Zip delivered another solid operating update in the third quarter of FY26. Transaction volume rose 22.4% to $4 billion, while total income climbed 20.2% to $335.2 million.

The standout figure was cash EBITDA, which surged 41.5% to a record $65.1 million. Operating margins also expanded to 19.4%. The stronger performance prompted management to lift FY26 cash EBITDA guidance to at least $260 million.

Much of that momentum continues to come from the United States. US transaction volumes and revenue both increased more than 43% in US dollar terms during the quarter, while active customer numbers grew 9%.

Those figures suggest Zip is continuing to win new customers while existing users remain highly engaged.

One key risk remains

Not everything is moving in the right direction. Bad debts remain the biggest concern for investors. Group net bad debts increased to 1.93% of transaction volume during the third quarter, up from 1.64% a year earlier.

Encouragingly, management of Zip shares noted that US net bad debts remained stable at 1.86% and expects them to decline below 1.75% during the fourth quarter.

If that happens, it would provide further evidence that Zip can continue growing without sacrificing credit quality.

All eyes on August

The company’s next trading update on 20 August could prove pivotal.

Investors in Zip shares will be looking for continued growth in transaction volumes, another improvement in profitability, and confirmation that bad debts are moving lower.

Foolish takeaway

Zip shares remain volatile, but the company’s fundamentals are moving in the right direction.

Improving earnings, strong US growth, and ongoing share buybacks are encouraging signs.

However, with credit quality still under close scrutiny, the next earnings update could determine whether Zip’s next recovery can start, or whether the recent volatility has further to run.

The post Zip shares are going wild. What investors need to know appeared first on The Motley Fool Australia.

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Motley Fool contributor Marc Van Dinther 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 Vanguard Australian Shares Index ETF (ASX: VAS) delivered a total gross return of 6.19% in FY26.

This was slightly higher than the total return of the index that VAS tracks, the S&P/ASX 300 Index (ASX: XKO).

The ASX 300 gained 2.84% in value and paid a 3.32% dividend yield for a total return of 6.16% in FY26.

After the teeny-tiny management fee of 0.07%, VAS ETF gave investors a 6.12% net return.

The VAS exchange-traded fund (ETF) closed out the year at $109.30 per unit on 30 June.

The ETF hit a 52-week high of $114.25 on 27 February.

With $25.377 billion in funds under management, VAS remains the largest ETF by market cap on the ASX today.

We’ve reviewed VAS ETF’s performance and identified the 10 stocks that rose the most within its basket.

Let’s check them out.

10 biggest risers within the VAS ETF in FY26

1. Sunrise Energy Metals Ltd (ASX: SRL)

This ASX 300 mining share stunned investors with a 2,040% gain in FY26 to finish the year at $17.23.

Sunrise Energy Metals is developing scandium and nickel-cobalt projects in central-west NSW.

2. 4DMedical Ltd (ASX: 4DX)

This ASX 300 healthcare share skyrocketed 1,786% to close out the year at $4.53.

The respiratory imaging technology company received US Food and Drug Administration (FDA) approval for its CT:VQ product in FY26.

CT:VQ is a post‑processing technology that transforms routine chest CTs into quantitative, lobar ventilation (V), and perfusion (Q) maps.

3. Minerals 260 Ltd (ASX: MI6)

This ASX 300 gold share soared 508% to end FY26 at 73 cents per share. 

This mineral explorer is building the Bullabulling Gold Project in Western Australia’s Eastern Goldfields.

4. Weebit Nano Ltd (ASX: WBT)

The Weebit Nano share price turbocharged itself 414% higher to $8.35 on 30 June.

Weebit develops advanced semiconductor memory technology.

5. Elevra Lithium Ltd (ASX: ELV)

This ASX 300 lithium share rocketed 327% higher to finish at $9.60 on 30 June.

Elevra was formed through the merger of Piedmont Lithium and Sayona Mining.

Its flagship mine is the North American Lithium Project.

6. Elsight Ltd (ASX: ELS) 

The Elsight share price soared 300% to finish FY26 at $7.10. 

Elsight’s Halo product provides Beyond the Visual Line of Sight (BVLOS) connectivity for drones, UAVs, and other unmanned air and land defence systems.

7. PLS Group Ltd (ASX: PLS)

Formerly known as Pilbara Minerals, this ASX 300 lithium share soared 275% to $5.02 apiece.

The company’s flagship is the Pilgangoora Operation, the world’s largest independent hard-rock lithium mine. 

Like all ASX lithium miners, PLS shares benefited from rapidly rebounding lithium commodity prices in FY26.

8. Electro Optic Systems Holdings Ltd (ASX: EOS)

The Electro Optic Systems share price increased 261% to close FY26 at $10.30.

Electro Optic specialises in defence technology, advanced weapon systems, and counter-drone solutions.

9. Macmahon Holdings Ltd (ASX: MAH) 

This ASX 300 materials share increased 213% to finish the year at 96 cents apiece.

Macmahon is a contract mining and civil infrastructure company providing operations services in Australia and Southeast Asia.

10. Mineral Resources Ltd (ASX: MIN) 

The Mineral Resources share price soared 188% to finish the year at $62.65.

The stock was in rebound mode after corporate governance issues and financial concerns dragged it down in FY25.

The post Own VAS ETF? Here’s how your investment performed in FY26 appeared first on The Motley Fool Australia.

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• VAS vs VGS: Which Vanguard ETF is winning so far this year?

Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Electro Optic Systems. 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.