Earning a passive income off your superannuation balance is easier than you’d think.

You just need to know how to invest it, and understand what level of passive income to expect.

The benefit of investing your superannuation for a passive income in retirement is that it comes with the added benefit of low tax rates and long-term compounding.

The only downside is that you can’t access it until you reach retirement age.

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 monthly $7,000 passive income as a guide.

How much do I need in my superannuation to get a passive income of $7,000 every month?

There’s a simple calculation you can use. First you’d need to work out what your monthly passive income totals over the year, then divide that annual passive income figure by the dividend yield of your portfolio.

For example, $7,000 x 12 = $84,000. Divide that by a 3% yielding portfolio and you’ll need a $2.8 million portfolio in order to earn $84,000 per year (or $7,000 per month).

Of course, a $2.8 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.

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. 

How much do I need in my superannuation if my portfolio yields 4%?

To earn $84,000 per year off a 4% yielding portfolio, you’d need to have a balance of around $2.1 million.

ASX shares that could fit the bill are things like Westpac Banking Corporation Ltd (ASX: WBC), ANZ GRoup Holdings Ltd (ASX: ANZ), or Transurban Group (ASX: TCL). These all yield 4% or a little more.

• How much do I need in my superannuation if my portfolio yields 5%?

To earn the same $84,000 per year off a 5% yielding portfolio, you’d need to have a superannuation balance closer to $1.68 million.

Shares that yield 5% or just over are things like Woodside Energy Group Ltd (ASX: WDS) Universal Store Holdings Ltd (ASX: UNI) and AGL Energy Ltd (ASX: AGL).

What about for a 6% yielding portfolio?

A superannuation balance around $1.4 million can earn the same passive income on a 6% yielding portfolio.

Harvey Norman Holdings Ltd (ASX: HVN), Fortescue Ltd (ASX: FMG) and Dexus Industria REIT (ASX: DXI) are good examples of ASX shares that yield around 6%.

And for a portfolio that yields 7% or 8%, what do I need then?

Higher yielding shares mean investors can earn the same passive income off a much smaller superannuation balance, but they do come with added risk.

A $1.2 million or $1.05 million portfolio yielding 7% or 8% respectively, could earn $84,000 in passive income.

Higher yielding options are ASX shares like the BetaShares Australian Top 20 Equities Yield Maximiser Complex ETF (ASX: YMAX), GQG Partners Inc (ASX: GQG) or Centuria Office REIT (ASX: COF).

The post How much do I need in my superannuation to earn $7k per month in passive income? appeared first on The Motley Fool Australia.

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• These ASX shares could generate $12,000 per year in passive income
• What’s not to love about these discounted ASX shares with big dividend yields?
• How much must I invest in Westpac shares to earn a $1,000 passive income in 2027?
• 3 ASX dividend shares to buy with 5%+ yields
• Are Westpac shares a top buy this week?

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 Transurban Group. The Motley Fool Australia has positions in and has recommended Harvey Norman and Transurban Group. The Motley Fool Australia has recommended Gqg Partners and Universal Store. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Brokers can’t agree on how much AIC Mines Ltd (ASX: A1M) shares will go up, but two of them agree the company is currently undervalued.

New production guidance impressing analysts

Both Bell Potter and Barrenjoey have published new research reports on AIC in the past few days, after the company announced guidance for the current year and a three-year growth outlook for its Eloise and Jericho copper mines.

The company said it was “an exciting time” as it transitioned from a small-scale, single mine to a 1.5 million tonne per annum dual mine operation producing 25,000 tonnes per annum in copper concentrate,

For the current year, AIC said it expected to produce 17,500-18,000 tonnes of copper, weighted to the second half of the year.

Guidance for the following year was for production of 20,000-22,000 tonnes, increasing to 25,000-27,000 tonnes in FY29.

The company added:

The Stage 2 Eloise plant expansion to 1.5Mtpa is now targeted to be completed in the December 2028 Quarter, approximately 2 years earlier than previously planned. This expansion, along with accelerated underground development at Jericho, is expected to increase copper production by a further 25% to over 25,000tpa in concentrate from FY29. No additional funding is required for the Stage 2 Eloise plant expansion or accelerated underground development at Jericho. However, the US$40 million Trafigura Prepayment Facility for the Eloise Expansion Project (currently drawn to US$30 million) has recently been expanded by US$10 million to a total US$50 million to ensure cost overruns or production delays can be managed, if required.

Bell Potter increased its price target on AIC shares following the announcement, boosting it from 90 cents to 95 cents.

The Bell Potter analysts said the accelerated stage 2 expansion was a positive, and had not previously been incorporated into their modelling.

They added that the company, “has a strong track record of delivering to guidance and a well-credentialed management team”.

Second broker even more positive

Barrenjoey has an even more bullish price target of $1.20 on AIC shares, compared to 64.75 cents currently.

They said regarding the announcement:

In our view the market should like the guidance and plans to grow further at reasonable costs/capex and an upsized debt facility. In the short term, FY27 is guided to be a more productive/cash generative year than we expected. We lift our FY27 production forecast by 16% to 17.5kt, at the lower end of A1M’s guidance, allowing for some execution risk. This drives an uplift in our FY27 EBITDA by 9% to $181m and an increase in free cash flow by about A$40m to now be $11m (from -$33m before), which means a better balance sheet position.

The post This ASX copper producer will jump 40-80%, brokers say appeared first on The Motley Fool Australia.

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The All Ordinaries Index (ASX: XAO) is down 0.4% in Tuesday morning trade, but that’s not holding back this ASX All Ords silver share.

The outperforming miner in question is Andean Silver Ltd (ASX: ASL).

Andean Silver shares closed yesterday trading for $1.83. At the time of writing, shares are swapping hands for $1.86 apiece, up 1.6%.

This outperformance follows a promising exploration update from the company’s Cerro Bayo Silver-Gold Project, located in Chile.

Here’s what we know.

ASX All Ords silver share lifts on bonanza-grade silver-gold results

The Andean Silver shares price is marching higher today after the miner reported that it has defined a “highly prospective” new area at Cerro Bayo.

The ASX All Ords silver share said the area has the potential to host a major silver-gold system, rather than isolated vein occurrences. And the new trend, named the Juanita Prospect, is situated just six kilometres from the Laguna Verde processing facility.

Noting that mineralised breccia zones were observed with widths up to 18 metres, some of the top initial outcrop mapping and rock chip sampling of these zones returned results that included:

• 62,663g/t silver equivalent (25,047g/t Ag & 453.2g/t Au) or 755g/t AuEq
• 41,489g/t silver equivalent (37,024g/t Ag & 53.8g/t Au) or 500g/t AuEq

Andean Silver said that prior historic scout drilling and channel sampling programs conducted in this area hadn’t comprehensively tested the high-grade breccia zones, with only five holes and channels intersecting parts of this higher-grade system.

The ASX All Ords silver share is now progressing with geological mapping and sawn channel sampling along the two-kilometre-long Juanita trend to further define the extent of the high-grade silver gold mineralisation prior to drill testing the zone.

What did Andean Silver management say?

Commenting on the results helping lift the ASX All Ords silver share today, Andean Silver managing director Matthew Allen said, “Juanita is emerging as a potentially significant silver-gold prospect.”

Allen added:

Its mineralisation differs from the vein-style deposits common across the company’s tenure, with high-grade silver and gold occurring over a substantial strike length and through multiple mineralising events.

Juanita historically has remained underexplored for 20 years due to the subtle surface expression of the system exposed on surface and limited intersection in historic scout drilling.

Juanita represents a third new large exploration area identified outside the existing resources at the Cerro Bayo Project, which include the Guanaco and Droughtmaster corridors, building Andean’s future prospect pipeline.

With the miner reporting $53.4 million in cash at the end of the March quarter, it said it is well-funded for the growth drilling and future feasibility works ahead.

The post Why is this ASX All Ords silver share jumping higher in Tuesday’s slumping market? appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben 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.