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  • How much passive income can I earn off a $700,000 superannuation balance?

    Couple on their laptop in their home kitchen.

    A $700,000 superannuation balance is a great starting point. 

    It sits above the $630,000 balance that the Association of Superannuation Funds of Australia (ASFA) thinks every Australian needs for a comfortable retirement, and below the asset cut-off point for a part Age Pension payment.

    This amount of money means you’ll be able to live well when you decide to stop working. But if you invest that money wisely, it could also generate an additional passive income that’ll turn a comfortable retirement lifestyle into an affluent one. 

    Think frequent travel, luxury property, and flexible discretionary spending.

    So, how much passive income can you earn off a $700,000 superannuation balance?

    And what ASX shares could you invest in?

    Let’s take a look.

    The calculation

    There is a straightforward calculation to work out what passive income a $700,000 passive income could generate.

    If you multiply your total superannuation balance by the overall dividend yield of your portfolio, it’ll give you the passive income you could generate.

    The answer changes depending on your dividend yield, which helps you identify what you need to invest in to earn the income you want. 

    Generally, as your yield goes up, the passive income you can earn off the same balance also increases.

    How much could I earn off a 2% to 3% yielding superannuation portfolio?

    A 2% yielding portfolio is at the lowest end of the scale. Off a $700,000 superannuation balance, you’d generate around $14,000 in passive income. That’s because $700,000 x 2% = $14,000 in dividend payments.

    It’s not a huge amount, but the benefit of a super low yielding portfolio is that this would generally be focused on traditional and reliable blue-chip shares rather than towards high-growth ASX stocks.

    Think Woolworths Group Ltd (ASX: WOW), Macquarie Group Ltd (ASX: MQG), and even CSL Ltd (ASX: CSL). These shares are each huge in scale, have a long history of paying dividends to shareholders, and they yield somewhere in the 2% to 2.5% range, at the time of writing.

    On a 3% yielding portfolio, you could earn a little more, at closer to $21,000 per year in dividend income, off the same balance.

    Stocks around the 3% level typically offer investors a balance between a moderate, reliable passive income, and some capital growth potential.

    Think Commonwealth Bank of Australia (ASX: CBA), BHP Group Ltd (ASX: BHP), and Wesfarmers Ltd (ASX: WES). These powerhouses all offer a yield of around 3% to 3.5% at the time of writing.

    What about a 4% to 5% yielding superannuation portfolio?

    If your superannuation portfolio yields closer to 4% or 5%, you could earn even more, at closer to $28,000 or $35,000 per year in passive income, respectively.

    This is often considered by investors as the “sweet spot” between stability and growth. Companies in this bracket are typically large-scale blue chips, major banks, or defensive infrastructure shares. 

    For example, Rio Tinto Ltd (ASX: RIO), Medibank Private Ltd (ASX: MPL), National Australia Bank Ltd (ASX: NAB), ANZ Group Holdings Ltd (ASX: ANZ), Westpac Banking Corp (ASX: WBC), Deterra Royalties Ltd (ASX: DRR), Transurban Group (ASX: TCL), and Telstra Group Ltd (ASX: TLS) all yield around this bracket, at the time of writing.

    What about higher yielding ASX shares, around the 6% to 8% level?

    It’s possible to earn even more if your superannuation investment portfolio is high yield, but this comes with a lot more risk. Investors would need to accept lower growth, or potentially even share price declines, in place of a higher passive income.

    There are still plenty of options around this level, though.

    Some examples are Harvey Norman Holdings Ltd (ASX: HVN), Premier Investments Ltd (ASX: PMV), or Nick Scali Ltd (ASX: NCK). 

    Real Estate Investment Trusts (REITS) also typically offer a higher yield thanks to their predictable rental income. Such as, Charter Hall Long WALE REIT (ASX: CLW), Waypoint REIT Ltd (ASX: WPR), and HomeCo Daily Needs REIT (ASX: HDN).

    The post How much passive income can I earn off a $700,000 superannuation balance? appeared first on The Motley Fool Australia.

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    Motley Fool contributor Samantha Menzies has positions in BHP Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL, Macquarie Group, Transurban Group, and Wesfarmers. The Motley Fool Australia has positions in and has recommended Harvey Norman, Telstra Group, and Transurban Group. The Motley Fool Australia has recommended BHP Group, CSL, HomeCo Daily Needs REIT, Macquarie Group, Nick Scali, Premier Investments, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

  • Fletcher Building posts higher volumes in Q1 FY27, residential lags

    Three people at a building site discussing a plan whilst eating.

    The Fletcher Building Ltd (ASX: FBU) share price is in focus today as the company released its first quarter FY27 volume report, highlighting overall sales volumes ahead of the same period last year in most business units and strong momentum in several key segments.

    What did Fletcher Building report?

    • Core business sales volumes in Q1 FY27 were higher than Q1 FY26 in most units
    • Comfortech glass wool sales up 9.0% year on year
    • Fletcher Insulation sales volumes rose 13.6% compared to Q1 FY26
    • Winstone Wallboards domestic board volumes up 7.7% year on year
    • Di mond local volumes grew strongly, up 18.2%
    • Residential units taken to profit declined 38.6% compared to Q1 FY26

    What else do investors need to know?

    While most of Fletcher Building’s core businesses experienced growth, the residential and development division continued to face tough conditions, particularly in the Auckland market. This segment contributed minimally to the group’s half-year results.

    The company noted that Pipeline volumes were lower as customers used stock bought ahead of prior price increases. Seasonal trading patterns broadly matched expectations in other businesses after the end of FY26.

    Ongoing uncertainty around inflation and interest rates continues to cloud the short-term outlook for new construction projects, both commercial and residential.

    What’s next for Fletcher Building?

    Fletcher Building management remains alert to current economic headwinds. The company signaled that forward-looking activity is difficult to predict, citing cautious customers and subdued project pipelines across some markets.

    Fletcher Building expects its Residential & Development business will continue to face challenges, while the core building products businesses remain focused on optimising performance and delivering value to shareholders.

    Fletcher Building share price snapshot

    Over the past 12 months, Fletcher Building shares have declined 4%, trailing the S&P/ASX 200 Index (ASX: XJO), which has declined 2% over the same period.

    View Original Announcement

    The post Fletcher Building posts higher volumes in Q1 FY27, residential lags 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.

  • Insurance Australia Group updates on RAC alliance and ACCC review

    Work colleagues discussing finance charts and graphs on a laptop computer and tablet in their office.

    The Insurance Australia Group Ltd (ASX: IAG) share price is in focus today after the company updated the market on its proposed alliance with the Royal Automobile Club of Western Australia (RAC), highlighting a $1.2 billion lift in annual gross written premium and reaffirming the strategic and financial benefits of the transaction.

    What did Insurance Australia Group report?

    • Proposed RAC alliance adds $1.2 billion in annual gross written premium
    • IAG expects the transaction to be earnings per share (EPS) accretive in the first full year
    • Annual pre-tax synergies of ~$100 million targeted post-integration
    • $15–$25 million in annual integration costs anticipated over the next three years
    • $20 million community investment commitment over the next decade in WA

    What else do investors need to know?

    IAG has addressed competition concerns raised by the ACCC regarding the RAC alliance with a package of commitments, including the sale of renewal rights for NRMA Insurance home and motor policies in Western Australia. The company will also look to expand RAC home insurance product availability in northern WA, where options are currently limited.

    These measures are designed to support public benefits and aim to further build resilience in Western Australian communities. IAG says its public benefits application is now available on the ACCC website, with the review process expected to conclude in December 2026.

    What did Insurance Australia Group management say?

    Managing Director and CEO Nick Hawkins said:

    In light of our commitment to RAC and its members, and in response to the ACCC’s competition decision, we are offering to transfer renewal rights for our active NRMA Insurance home and motor insurance policies in Western Australia to another insurer. Furthermore, we are proposing additional commitments and accountabilities in relation to product pricing and competitiveness of the RAC insurance offering. The commitments will also secure more benefits for Western Australians. This includes making RAC home insurance available in parts of the North West where insurance can be difficult to access today. We have also proposed a $20 million investment in Western Australian communities over the next decade. That’s in addition to RAC’s existing community investment program and reflects our long-term commitment to the state. RAC is a wonderful organisation with a much-loved brand. RAC has chosen to partner with IAG to ensure its insurance offering to members is sustainable into the future, benefiting from our scale, technology and global reinsurance arrangements. We are committed to creating this strategic alliance and are making substantial commitments to RAC, its members and all Western Australians.

    What’s next for Insurance Australia Group?

    Looking ahead, IAG expects approval of the RAC alliance to drive ongoing growth and support its Ambition 2030 targets of a sustainable 15%+ reported insurance margin and 15% return on equity. The company will work through the final stages of the ACCC review, and, if approved, focus on delivering integration synergies and community initiatives outlined in its proposal.

    The alliance also aims to bring greater resilience and access to insurance for Western Australians, especially in regions that have historically faced limited options.

    Insurance Australia Group share price snapshot

    Over the past 12 months, Insurance Australia Group shares have risen 2%, outpacing the S&P/ASX 200 Index (ASX: XJO), which has declined 2% over the same period.

    View Original Announcement

    The post Insurance Australia Group updates on RAC alliance and ACCC review 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.

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