Aussies born on or after 1 January 1957 can apply for the age pension when they turn 67, whether retired or not.

To be eligible for the full pension, or a part-payment, you have to pass an assets test and income test.

The thresholds for those tests changed earlier this month.

So, let’s take a look at the new thresholds, and also assess whether the pension is enough to see you through retirement.

Is the age pension enough?

On the face of it, the age pension is not enough on its own to cover life’s expenses in retirement.

The full age pension is $1,200.90 per fortnight for singles, and $905.20 per person, per fortnight, for couples.

That translates to $31,223 per year for singles and $47,070 per year for couples.

Australia’s benchmark retirement budgeting tool, the ASFA Retirement Standard, says retirement costs more than this.

A ‘modest’ retirement costs $36,434 per year for singles and $52,473 per year for couples — if you own your own home.

If you’re renting, a modest lifestyle costs $51,164 per year for singles and $69,002 per year for couples.

A ‘comfortable’ retirement costs even more: $55,923 per year for single homeowners and $78,566 per year for couple homeowners.

You can find out exactly how ASFA defines modest and comfortable retirement lifestyles here.

ASFA does not provide an estimate for comfortable retirement costs for renters.

So, how do you fill the gap given the age pension doesn’t cover all living expenses?

Ideally, you’ll have some superannuation, other investment income, or wages income to do exactly that.

But Centrelink has limits on how much you can own and earn while still qualifying for the age pension.

So, let’s go over the newly-revised thresholds for the pension asset and income tests.

Asset test

Your assessable assets include ASX shares, super, bonds, managed funds, rental properties, and cash. Your home is excluded.

Single homeowners can own up to $333,000 in assets and still qualify for a full pension.

If you own assets worth between $333,001 and $733,500, you will qualify for a part-payment.

Single renters can own up to $600,000 in assets and still qualify for the full pension.

If you own assets worth between $600,001 and $1,000,500, you will be eligible for a part-pension.

Couple homeowners can own up to $499,000 in assets while still being eligible for the full age pension.

If you have assets worth between $499,001 and $1,102,50, you will qualify for a part-payment.

Couple renters can own up to $766,000 in assets and still be eligible for the full age pension.

If you own assets worth between $766,001 and $1,369,500, you can apply for a part-payment.

Income test

Singles can earn up to $226 per fortnight and still qualify for the full age pension.

If you earn between $227 and $2,627.80 per fortnight, you can apply for a part-pension.

Couples can earn up to $396 per fortnight and still qualify for the full age pension.

If you earn between $397 and $4,016.80 per fortnight, you will be eligible for a part-pension.

Assessable income includes wages and investment income.

Rental income must be reported each year. For everything else, Centrelink uses generous deeming rates to estimate your annual investment income.

The lower deeming rate is 1.25% and the upper deeming rate is 3.25%.

The asset value threshold is $66,800 for singles and $110,600 for couples.

This means the first $66,800 of your assets, or $110,600 for couples, has a 1.25% deemed rate of interest.

Everything above that is deemed to have earned 3.25% interest.

 

The post How much can you own and earn while still qualifying for the age pension? appeared first on The Motley Fool Australia.

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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 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.

Owning BHP Group Ltd (ASX: BHP) shares has been a solid choice for passive income over the last decade. It could still be a good choice for FY27.

There are a couple of reasons why ASX mining shares can deliver an appealing dividend yield. Firstly, they usually have a relatively low price/earnings (P/E) ratio compared to other sectors. Secondly, the big miners are usually generous with their dividend payout ratios.

Iron ore miners like BHP can have particularly low P/E ratios because their earnings can be more volatile than other commodities – the iron ore price can shift significantly, depending on what’s happening with Chinese demand.

But, with the iron ore price sitting at around US$100 per tonne (according to Trading Economics), BHP can still generate compelling iron ore profit. Plus, its growing copper exposure can help provide more stability and diversification to its earnings.

With all of the above in mind, let’s see what passive income payments owners of BHP shares could expect in FY27.

Projected passive income

According to Commsec’s estimate, the ASX mining share giant is forecast to pay an annual dividend per share of A$2.06.

Of course, the potential payout may not be exactly that figure. It could be smaller or larger, depending on commodity prices.

An increasing volume of iron ore coming out of Africa could, for example, negatively impact the iron ore price. But it’s also possible that Chinese demand could be stronger than expected. Time will tell how the next 12 months play out.

If BHP pays that level of income to shareholders, it would translate into a grossed-up dividend yield of 5.2% at the time of writing, including franking credits. The yield isn’t as high as it was a year ago following a rise of close to 50% for the BHP share price – this hurts the prospective yield, though it’s great for long-term shareholders.

How much to invest in BHP shares for $1,000 of annual dividends?

The BHP share price certainly isn’t cheap these days, but investors can still buy a slice of the mining giant.

If investors do receive A$2.06 per share in the 2027 financial year, then to receive $1,000 of annual dividends, an investor would need to own 486 BHP shares.

To buy 486 BHP shares, it would cost an Australian $27,415 at the time of writing.

BHP is a solid business, but I think there are even better options out there for returns.

The post How much must I invest in BHP shares to earn a $1,000 passive income in 2027? appeared first on The Motley Fool Australia.

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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 recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The new financial year could be a good time to consider some new additions to your portfolio.

With that in mind, listed below are ten fantastic ASX shares that could be worth buying for FY27.

Breville Group Ltd (ASX: BRG)

Breville has built a global business around premium kitchen appliances.

Its strength is brand, product design, and the ability to make everyday categories such as coffee machines, cooking, and food preparation feel more premium. International expansion remains a major long-term opportunity.

Cochlear Ltd (ASX: COH)

Cochlear could be a healthcare share to watch closely.

The company is a global leader in hearing implants and related support services. Recent share price weakness has been painful, but the long-term need for better hearing treatment remains significant as populations age and access to care improves.

Goodman Group (ASX: GMG)

Goodman remains one of the ASX’s highest-quality property shares.

Its industrial properties support logistics, warehousing, ecommerce, and data infrastructure. The company has a major development pipeline, particularly with data centres, leaving it well-positioned for growth over the next decade.

Megaport Ltd (ASX: MP1)

Megaport is an ASX tech share with a broader story than it had a year ago.

The company is known for cloud connectivity, but its move into compute through Latitude.sh has added another growth angle. Recent contract wins suggest this newer opportunity is gaining significant traction.

REA Group Ltd (ASX: REA)

REA Group owns Australia’s dominant online property platform, realestate.com.au.

Property markets can move in cycles, but REA benefits from a powerful audience position, deep agent relationships, and the importance of digital advertising in real estate. That gives it a strong base for long-term growth.

ResMed Inc (ASX: RMD)

ResMed is another ASX healthcare share with global scale.

Its devices, masks, software, and connected care tools help treat sleep apnoea and other respiratory conditions. Investor sentiment has weakened recently, but the company continues to serve a large market with ongoing treatment needs.

TechnologyOne Ltd (ASX: TNE)

TechnologyOne provides enterprise software to governments, universities, and large organisations.

Its products help customers manage finance, payroll, planning, property, and administration. The shift to software-as-a-service has strengthened its recurring revenue base and supported consistently strong growth in recent years.

Woolworths Group Ltd (ASX: WOW)

Woolworths gives investors exposure to everyday spending.

The supermarket giant has scale, supply chain strength, loyalty data, and a major role in Australian grocery shopping. It is not a cheap growth stock, but it can provide defensive qualities when economic conditions become uncertain.

WiseTech Global Ltd (ASX: WTC)

WiseTech Global provides software for the logistics industry.

Its CargoWise platform helps freight forwarders and logistics providers manage complex global supply chains. Governance concerns have weighed on WiseTech shares, but its strong long-term growth outlook remains hard to ignore.

Xero Ltd (ASX: XRO)

Xero is one of the ASX’s leading software shares.

Its cloud-based platform helps small businesses and advisers manage accounting, payroll, invoicing, reporting, and compliance. If Xero keeps expanding internationally and adding more services, it could remain a strong long-term growth share.

The post 10 fantastic ASX shares to buy for FY27 appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Cochlear, Goodman Group, Megaport, REA Group, ResMed, Technology One, WiseTech Global, Woolworths Group, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Cochlear, Goodman Group, Megaport, ResMed, Technology One, WiseTech Global, and Xero. The Motley Fool Australia has positions in and has recommended ResMed, WiseTech Global, and Xero. The Motley Fool Australia has recommended Cochlear, Goodman Group, and Technology One. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.