Retirement planning can look a little less intimidating when two people are approaching it together.

Couples often have two super balances, two working histories, and the ability to share many of the largest household costs.

Even so, deciding whether there is enough money to retire comfortably is rarely as simple as adding the two balances together and hoping the result looks reassuring.

The better question is whether the combined super, other savings, and any future Age Pension payments can support the lifestyle both people expect after work.

What is the benchmark for couples?

According to the Association of Superannuation Funds of Australia, a homeowner couple needs around $730,000 in super at retirement to support a comfortable lifestyle.

That estimate assumes the couple owns their home outright and receives some Age Pension support as their savings decline over time.

A comfortable retirement is not intended to represent an extravagant lifestyle. It allows for private health insurance, a reliable car, regular leisure activities, household repairs, domestic holidays, and occasional overseas travel, while also leaving some room to deal with unexpected costs.

For couples expecting a simpler lifestyle, ASFA estimates that around $120,000 in combined super may support a modest retirement for homeowners. At that level, however, the Age Pension would be expected to provide most of the couple’s income, and there would be much less room for travel, larger purchases, or financial surprises.

Why couples do not need twice as much as singles

The comfortable retirement target for a couple is only moderately higher than the $630,000 benchmark for a single homeowner.

This may initially appear surprising, but couples can share many major expenses. They usually pay for one home, one electricity connection, one internet service, and many of the same household items that a single retiree must fund alone.

That creates an important advantage, although couples should not assume that every cost will be shared evenly. Healthcare, hobbies, travel preferences, and personal spending can still vary considerably between two people.

The shared-cost benefit also means that relationship status can have a major influence on how far a super balance stretches. A couple with $730,000 may be able to achieve a comfortable lifestyle, while a single retiree with half that amount could face a much tighter budget.

Is $730,000 enough for every couple?

The ASFA figure is a guide rather than a guarantee, and some couples will require substantially more.

Those who plan to retire early may need to fund several years before becoming eligible for the Age Pension. Couples who are still paying a mortgage, renting privately, travelling frequently, or supporting adult children may also need a larger balance.

Health can change the calculation as well. Private health insurance, dental treatment, home modifications, mobility assistance, and care costs can place additional pressure on retirement income.

Other couples may find that they need less than the benchmark because they own a low-maintenance home, have modest spending habits, or receive income from investments outside super.

Combined balances can make a major difference

One benefit of planning as a couple is that two moderate balances can create a strong combined position.

For example, two people retiring with $365,000 each would together meet the current comfortable benchmark. Neither balance looks especially large in isolation, but the household position is much stronger once they are combined.

This is why couples should review their retirement finances together rather than treating each superannuation account as a separate plan. Contribution strategies, investment risk, retirement dates, pension eligibility, and expected spending all affect the household outcome.

It may also make sense for one partner to contribute more heavily to super at certain times, particularly when there is a large difference between balances or taxable incomes. The appropriate strategy will depend on the couple’s circumstances and may be worth discussing with a qualified adviser.

The real retirement target

A couple’s retirement target should ultimately be based on expected spending rather than a single headline number.

Housing is likely to be the largest dividing line. A couple with a paid-off home and $600,000 in superannuation may feel more secure than renters with a substantially larger balance because ongoing housing costs can absorb a significant share of retirement income.

The timing of retirement matters as well. Working for an additional year or two can allow further contributions, provide more time for investment growth, and shorten the period that super needs to fund.

Foolish takeaway

A homeowner couple aiming for a comfortable retirement should currently target around $730,000 in combined superannuation, while a modest retirement may be possible with around $120,000 and substantial Age Pension support.

Those figures provide a reasonable starting point, but the right amount will depend on housing, retirement age, spending expectations, health, and other assets.

The strongest position is not necessarily having the largest possible balance. It is having enough combined income and flexibility to support the retirement that both partners have in mind.

The post How much superannuation should Australian couples have before retirement? appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro 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.

Most ASX investors have heard of the Magnificent 7, I’d wager. That catchy label refers to seven of the largest tech stocks in the world that all call the United States of America home. These US tech stocks have been incredibly lucrative investments in recent years.

You probably don’t need reminding, but Nvidia Corp (NASDAQ: NVDA), Apple Inc (NASDAQ: AAPL), Microsoft Corp (NASDAQ: MSFT), Alphabet Inc (NASDAQ: GOOGL) (NASDAQ: GOOG), Amazon.com Inc (NASDAQ: AMZN), Meta Platforms Inc (NASDAQ: META), and Tesla Inc (NASDAQ: TSLA) are all dominant forces in the global economy. Each has carved out an enduring presence in the personal and professional lives of people all around the world.

And each has delivered eye-watering returns over varying lengths of time.

However, a recent look at the top echelons of the US markets has prompted me to ponder that perhaps the ‘Magnificent 7’ is becoming an outdated label. Thanks to the rise of another high-flying US tech stock, we might have to expand it to the ‘Magnificent 8’, or perhaps the ‘Electric 8’ for the innovators.

The US tech stock I’m referring to goes by the name of Micron Technology Inc (NASDAQ: MU).

A new titan of a US tech stock?

Micron is a semiconductor company that manufactures chips, memory, drives, and other data processing and storage products.

To put it simply, this company has gone parabolic in recent months, as have many semiconductor and chip stocks. One year ago, you could have picked up this US tech stock for US$122.24 a share. By the start of 2026, Micron shares were asking US$315.42. Today, one Micron share will set you back a whopping US$991.64.

That means Micron is up almost 215% year to date, and up a jaw-dropping 705.5% over the past 12 months.

These gains give the company a market capitalisation of US$1.11 trillion today. So we have another trillion-dollar tech stock at the top of the US markets. This puts Micron as the tenth-largest stock in the entire S&P 500 Index (SP: .INX), and thus in the popular iShares S&P 500 ETF (ASX: IVV) index fund. This US tech stock is also now the third-largest holding in the also popular BetaShares Nasdaq 100 ETF (ASX: NDQ). 

Even if you don’t own Micron shares, or these ASX exchange-traded funds (ETFs), directly, it’s likely that your superannuation fund now has a significant Micron investment. 

As such, we’d all better keep an eye on this US tech stock.

The post Magnificent 8? Meet the US tech stock up 215% in 2026 appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has positions in Alphabet, Amazon, Apple, Meta Platforms, and Microsoft. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, Apple, BetaShares Nasdaq 100 ETF, Meta Platforms, Micron Technology, Microsoft, Nvidia, Tesla, and iShares S&P 500 ETF. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Commonwealth Bank of Australia (ASX: CBA) shares are usually among the most popular dividend holdings because of their blue-chip status and satisfactory dividend yield.

However, the ASX bank share‘s dividend yield isn’t exactly the biggest in the sector. It usually has the smallest dividend yield compared to names like National Australia Bank Ltd (ASX: NAB), Westpac Banking Corp (ASX: WBC) and ANZ Group Holdings Ltd (ASX: ANZ).

But what CBA lacks in dividend yield, it makes up for in its dividend growth over the past 15 years and payout stability.

Pleasingly, the bank has increased its annual dividend each year since FY20 following the financial impacts of the COVID-19 pandemic.

Commonwealth Bank’s latest result was another period of good performance by the ASX bank share. The CBA interim dividend per share increased by 4% to $2.35, funded by 6% growth in cash net profit after tax (NPAT).

Let’s take a look at what analysts think the business could deliver in the 2027 financial year, which recently started.

2027 dividend projection for owners of CBA shares

According to the independent projection on Commsec, the ASX bank share is projected to pay an annual dividend per share of $5.15 in the 2027 financial year.

At the time of writing, the forecast translates into a dividend yield of 3.1% excluding franking credits and a grossed-up dividend yield of 4.5% including franking credits.

If someone were to invest $10,000 in Commonwealth Bank, they would be able to buy 60 CBA shares (with a little bit of money left over).

With those 60 CBA shares, investors could receive $309 of cash and $441.43 overall, including the franking credits.

Is this a good time to invest in Commonwealth Bank?

According to CMC Invest, there have been eight analyst ratings on the business in the last three months.

Of those eight, all of them have been a sell rating. So, the investment professionals are very negative on how appealing the company’s valuation is right now.

The average price target of those eight ratings is $120.38, according to CMC Invest. That means, collectively, those analysts are predicting the CBA share price could drop by 27% within the next year, at the time of writing.

After the Federal budget, the Commonwealth Bank share price dropped below $154, though it has somewhat recovered from that recent low point.

It seems there are better ASX shares out there that we can buy.

The post If I invest $10,000 in CBA shares, how much passive income will I receive 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 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.