Your superannuation shouldn’t sit quietly in the background.

If you can actively and wisely invest it, it can become an excellent tool to generate an easy passive income for retirement.

As an added bonus, not only can it help you build wealth for later on in life, it also comes with the added benefit of low tax rates and long-term compounding.

But how much do you actually need in your super to be able to earn the passive income you want in retirement?

Let’s break it down, using a $60,000 per year passive income as an example.

How much do I need in my superannuation to earn $60,000 per year in passive income?

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

Of course, the tricky part is that the answer varies significantly depending on what dividend yield of your portfolio actually is.

For example, a portfolio with a dividend yield of around 6% only needs to be half the size of one with a dividend yield of around 3% to generate the same level of passive income. 

So, if your overall portfolio has a dividend yield of around 3%, you’ll need a balance of around $2 million to earn $60,000 per year in passive income.

Of course, a $2 million superannuation balance isn’t achievable for many Australians. But the good news is that, as your dividend yield increases, the superannuation balance required to earn the same passive income goes down.

That means, if the yield of your portfolio is around 4%, for example, your balance would need to be closer to $1.5 million to earn the same dividend income.

Raise the dividend yield of your portfolio to 5% and you’d be looking at a balance of closer to $1.2 million to earn the same amount.

Increase that to a 6% or even 8% dividend yield, and you’d need around $1 million or $750,000, respectively. You’d still earn $60,000 per year in passive income from these portfolio sizes.

What ASX shares can I buy around these dividend yields?

There are a huge range of ASX dividend shares available for your superannuation investment. Here are some of my favourites.

Lower-yielding ASX dividend-paying shares such as Wesfarmers Ltd (ASX: WES), Woolworths Group Ltd (ASX: WOW), AMP Ltd (ASX: AMP) and Washington H. Soul Pattinson and Co Ltd (ASX: SOL) are solid and reliable stocks that offer a yield of around 2% to 3%.

For a mid-range yielding ASX dividend option, I’d look at defensive assets like Telstra Group Ltd (ASX: TLS). Santos Ltd (ASX: STO) is a good option if you want oil and gas exposure. Meanwhile, Coles Group Ltd (ASX: COL) and blue-chip majors like Rio Tinto Ltd (ASX: RIO), BHP Group Ltd (ASX: BHP) and National Australia Bank Ltd (ASX: NAB) pay a decent dividend of around 3% to 5%.

For a higher 5% to 6% dividend yield, I’d look at reliable payers like APA Group (ASX: APA) or AGL Energy Ltd (ASX: AGL).

Dexus Industria REIT (ASX: DXI) and Charter Hall Long WALE REIT (ASX: CLW) yield around the 7% mark.

If you want to take on more risk and go for a much higher-yielding ASX stock, my picks would be something like IPH Ltd (ASX: IPH), Centuria Office REIT (ASX: COF), or the BetaShares Australian Top 20 Equities Yield Maximiser Complex ETF (ASX: YMAX). These typically yield anywhere between 9% and 12%.

The post How much do I need in my superannuation to earn an annual $60,000 passive income? appeared first on The Motley Fool Australia.

More reading

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• Buy, hold, sell: Coles, Woolworths, Wesfarmers shares
• 5 things to watch on the ASX 200 on Friday
• 3 ASX dividend shares I’d buy for passive income right now
• Here are the top 10 ASX 200 shares today

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 positions in and has recommended Washington H. Soul Pattinson and Company Limited and Wesfarmers. The Motley Fool Australia has positions in and has recommended Apa Group, Telstra Group, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended BHP Group, IPH Ltd , and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Income investors are spoilt for choice when it comes to ASX dividend shares on the local market.

To narrow things down, let’s take a look at two that have been named as buys by brokers.

Here’s what they are recommending to clients:

Collins Foods Ltd (ASX: CKF)

Morgans is a fan of this quick service restaurant operator and has been pleased with its performance in a tough operating environment.

Commenting on its recent results, the broker said:

In our view, CKF reported a solid result in light of tough conditions. NPAT grew 17.6%, at the mid-point of guidance. COGS are expected to be flat to modest in FY27, which is better than feared. KFC Australia 1H27-to-date SSS of +4.0% is a stronger-than-expected start. Europe disappointed with early 1H27 SSS tracking deeply negative, though attributable to factors outside CKF’s control. Balance sheet remains strong with ND/EBITDA of 0.8x, keeping CKF well placed to fund the German expansion, accelerate Kwench rollout, and pursue further German bolt-on acquisitions. 

While the composition of our forecasts has changed, the net profit impact is minor. We believe CKF remains undervalued for its growth profile. Despite the tough consumer environment, CKF proves resilient regardless of numerous challenges and continues to deliver solid growth. We retain our BUY recommendation and revise our price target to A$10.60 from A$12.50.

Morgans is forecasting fully franked dividends per share of 31 cents in FY 2027 and 35 cents in FY 2028. Based on its current share price of $7.95, this would mean dividend yields of around 4% and 4.4%, respectively. 

The broker has a buy rating and $10.60 price target on the company’s shares.

Harvey Norman Holdings Ltd (ASX: HVN)

Another ASX dividend share that brokers are bullish on is retail giant Harvey Norman.

Bell Potter expects FY 2027 to be a tough year, but believes this is more than priced in. And with generous yields expected, it sees now as a good time to snap up Harvey Norman’s shares. It said:

While our views on FY27e sees challenging conditions for retailers with a recovery weighted to 2H, on our revised estimates HVN continues to trade at a 1-year forward P/E of ~13x (as per BPe) which appears attractive. 

We see mid-longer term growth catalysts related to the new store driven growth in international retailing (UK, Malaysia, Croatia), refit program in Australia, expansion of brand partnerships in the midpremium end of the whitegoods market somewhat offsetting the risk in the mid-market space and opportunities to grow their real estate portfolio as Australia’s single largest owner in large format retail with a global portfolio of ~$4.6b. We maintain BUY.

Bell Potter is forecasting fully franked dividends of 31.1 cents per share in FY 2027 and then 33.3 cents per share in FY 2028. Based on its current share price of $4.75, this equates to dividend yields of 6.6% and 7%, respectively.

The broker currently has a buy rating and $6.00 price target on its shares.

The post Brokers name 2 ASX dividend shares to buy with 4% to 7% yields appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: Harvey Norman and REA Group shares
• 5 things to watch on the ASX 200 on Friday
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• These ASX shares could generate $10,000 per year in passive income
• 5 top ASX dividend shares to buy in July

Motley Fool contributor James Mickleboro has positions in Collins Foods. 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 Harvey Norman. The Motley Fool Australia has recommended Collins Foods. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

It’s been a wobbly first half of 2026, with Australian sharemarkets swinging sharply between highs and lows.

During periods of uncertainty, defensive ASX shares are typically thrust into the spotlight as investors rotate towards stable assets.

But after recent price gains, are these major ASX blue chips still a buy?

Here’s what the experts think.

Coles Group Ltd (ASX: COL)

Coles shares have suffered peaks and troughs throughout the first few months of 2026. The shares have traded anywhere between a low of $20.35 a piece and an all-time high of $24.41 in late-June. Overall though, the shares are up around 6% for the year-to-date. 

It looks like Coles shares hit a couple of headwinds this month. After spiking to a historic high, the shares weakened over the past couple of weeks, thanks to a combination of company-specific setbacks. 

These include concerns about a potential acquisition of Petbarn owner Greencross, and news that the Australian Competition and Consumer Commission (ACCC) has ruled against the supermarket giant’s proposed acquisition of a leasehold interest in Kalgoorlie-Boulder, Western Australia. 

But brokers are still bullish about the outlook for Coles shares. TradingView data shows that the majority (nine out of 16) of analysts have a buy or strong buy rating. Another five rate the supermarket stock as a hold and another two have a sell or strong sell rating.

The average $23.65 target price implies a potential 5% upside at the time of writing. 

Woolworths Group Ltd (ASX: WOW)

Coles’ direct rival, Woolworths has fared much better this year. For the year-to-date the supermarket giant’s share price is over 33% higher, and it has mostly trended upwards rather than suffering a series of sharp peaks and falls.

It looks like the steady increase has mostly been driven by investor confidence that the retailer’s earnings are recovering after a difficult period in late-2025.

Woolworths posted a stronger-than-expected first half result in February and is actively pursuing cost cutting initiatives to help support margins and earnings over time. 

But after the incredible run,  it looks like Woolworths shares have now reached their peak and are trading around fair value. 

TradingView data shows that eight out of 17 analysts have a hold rating on the supermarket stock. Another five rate the shares as a buy or strong buy, and four rate Woolworths shares as a strong sell.

The average $36.33 target price now implies a potential 8% downside over the next 12 months, at the time of writing.

Wesfarmers Ltd (ASX: WES)

Wesfarmers shares had a difficult start to the year and slumped to an annual low in mid-May. But the retail conglomerate’s shares quickly rebounded and have now recovered around 29% from that point to the close of the ASX on Thursday afternoon. For the year-to-date, Wesfarmers shares are now up around 12%.

The business benefited from an uptick in consumer spending and news that interest rates could start falling. Wesfarmers’ sheer scale and market dominance across several retail sectors has also helped reinforce the company’s competitive advantage.

The company has also been actively expanding. The company has opened five Anko stores in the Philippines and plans to launch another five by the end of FY27. Locally, its Bunnings brand continues to expand into new categories, including pet products and automotive accessories. And also its Kmart segment is testing larger K Home stores in an attempt to break into the furniture retail market.

But the concern now is that after a huge rebound, Wesfarmers shares have become too expensive.

TradingView data shows half (seven out of 14) of analysts have a hold rating on the stock. Another six rate Wesfarmers shares as a strong sell. Only one broker now holds a buy rating.

The average $77.39 target price implies a potential 16% downside, at the time of writing. 

The post Buy, hold, sell: Coles, Woolworths, Wesfarmers shares appeared first on The Motley Fool Australia.

More reading

• 3 ASX dividend shares I’d buy for passive income right now
• This blue-chip ASX 200 stock is up 30% in 2 months
• How much superannuation is needed to target a $100,000 annual passive income?
• How to build a successful ASX dividend portfolio
• How I’d invest $10,000 in ASX shares for the next decade

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 positions in and has recommended Wesfarmers. The Motley Fool Australia has recommended Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.