If you’re ready to retire, or perhaps already have, you may be looking to invest some of your hard-earned superannuation savings to provide an annual passive income stream.

While there are a few ways you could go about this, I believe the best means to achieving an extra $20,000 of passive income a year from superannuation is by investing in quality ASX dividend shares.

We’ll look at two ASX dividend gems below you may wish to buy today.

They both currently pay market beating yields.

And while one has seen a modest share-price retracement over the past year, the other has gained. (Share prices as of 19 August.)

That’s important, because when you’re looking for ASX shares offering higher dividend yields, you’ll often find this is because their share prices have cratered in recent months. Which in turn often means that their future dividend payouts will be coming down as well.

Now before we dive in, do be aware that the yields you generally see quoted are trailing yields. Future passive income payouts may be higher or lower depending on a range of company specific and macroeconomic factors.

With that said…

Two ASX dividend shares for a $20,000 superannuation income stream

Our first ASX dividend gem is Helia Group Ltd (ASX: HLI).

Shares in the S&P/ASX 200 Index (ASX: XJO) lenders mortgage insurance (LMI) provider were recently trading for $5.72. That sees the Helia share price up around 1% over the past year.

As for the passive income on offer from your superannuation investment, Helia paid (or shortly will) two partly franked dividends and a special dividend over the past year, totalling $1.26 per share.

At the recent share price, that sees this ASX 200 dividend stock trading at a partly franked trailing yield (including that special dividend) of 22%.

The second ASX dividend gem I’d invest my superannuation savings in for passive income is Fortescue Ltd (ASX: FMG).

At the recent share price of $18.12, Fortescue shares are down 7.8% in 12 months. But I believe the ASX 200 mining giant can return to capital growth along with paying regular dividends.

Over the last 12 months, Fortescue paid two fully franked dividends totalling $1.22 per share.

At the recent Fortescue share price, that ASX 200 mining stock trades on a fully franked trailing dividend yield of 6.7%.

How much to invest for $20,000 of passive income?

Based on the trailing yields, and assuming you invest an equal amount in both ASX dividend gems, you could expect to see a yield of 14.3%.

To secure a $20,000 annual passive income stream, you’d then need to invest $139,860 of your superannuation savings today.

The post 2 ASX dividend gems I’d buy for a $20,000 superannuation income boost appeared first on The Motley Fool Australia.

More reading

• 8 ASX shares just upgraded by the experts
• Buy, hold, sell: Fortescue, Northern Star, and Megaport shares
• Are Fortescue shares in the buy zone after its results?
• Everything you need to know about the new Fortescue dividend
• Why is the Fortescue share price on a rollercoaster today?

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.

A $100,000 retirement income is well above what most superannuation benchmarks assume you will actually need.

But it is also the number a lot of Australians aim towards.

So what balance gets you there?

The answer is more encouraging than you might expect, though it does demand some planning.

What the superannuation benchmarks actually say

The Association of Superannuation Funds of Australia publishes the country’s most widely used retirement budgets.

For the March quarter of 2026, its comfortable standard sits at $55,923 a year for a single person and $78,566 for a couple.

The modest standard is much lower, at $36,434 and $52,473 respectively.

ASFA estimates a single homeowner needs a lump sum of $630,000 to fund a comfortable retirement, while a couple needs $730,000.

Those figures assume a 6% investment return alongside some Age Pension support.

A $100,000 income is therefore roughly 80% above the comfortable benchmark for a single retiree.

It also sits well beyond the point where the Age Pension assets test offers any assistance at all.

The maths behind $100,000 a year

Once you retire and convert your balance into an account-based pension, the government sets minimum withdrawal rates.

For anyone aged between 65 and 74, that minimum is 5% of the balance each year.

Running that calculation in reverse gives you the following figures.

A balance of $2 million drawn at 5% produces exactly $100,000 a year.

That is the headline answer.

For a couple the burden is shared, so around $1 million each achieves the same household income.

It is worth remembering that earnings inside a retirement phase pension are generally tax free, and so are the withdrawals for anyone over 60.

A $100,000 pension income is consequently worth a great deal more than a $100,000 salary.

Where the transfer balance cap fits in

There is a ceiling on how much you can move into that tax-free environment.

From 1 July 2026, the general transfer balance cap rose to $2.1 million per person.

This means that at the 5% minimum drawdown rate, a fully used $2.1 million cap generates $105,000 a year.

The system is effectively designed to support roughly this level of income for one retiree.

How much superannuation you would realistically need

The honest answer is around $2 million in superannuation for a single retiree.

A couple targeting the same household income needs a similar amount between them.

That may seem like a daunting figure against the average balance, which sits closer to $308,600 for Australians aged 70 to 74.

Getting there with ASX shares

This is where growth assets do the heavy lifting.

The Vanguard Australian Shares Index ETF (ASX: VAS) is the most popular way Australians own the local market.

It tracks the S&P/ASX 300 Index (ASX: XKO) across more than 300 holdings and charges just 0.07% a year.

Since inception the fund has returned an average of roughly 9.22% annually.

At that rate, $500,000 invested at age 45 would grow to about $2 million by age 61 without a single extra contribution.

Compounding, rather than the size of your contributions, does most of the work.

Foolish takeaway

Retiring on $100,000 a year is achievable, but it takes roughly $2 million and a long runway.

The good news is that superannuation remains one of the most tax-effective structures available to Australian investors.

Start early, keep your fees low, and let the market do the compounding for you.

The difference between a modest retirement and a comfortable one is usually decided decades before you stop working.

The post How much super do you need to retire on $100,000 a year? appeared first on The Motley Fool Australia.

More reading

• How I’d make investing easy with Vanguard ETFs
• Top 3 ASX ETFs for a first-time investor in 2026
• How to turn $10,000 into $100,000 with ASX shares
• Is $2 million really the new superannuation target?
• How much do I need to retire on $100,000 a year at 60?

Motley Fool contributor Mark Verhoeven 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.

Having $50,000 to invest is a good problem to have.

But it can also make the decision feel harder.

With a larger sum, investors may not want to put everything into one narrow idea. A better approach could be to build around a mix of broad global exposure, proven technology leaders, and a focused long-term growth theme.

With that in mind, here are three ASX exchange traded funds (ETFs) that could be worth considering.

Betashares Global Shares ETF (ASX: BGBL)

The first ASX ETF to consider is the Betashares Global Shares ETF.

This fund gives investors exposure to a large basket of global shares across developed markets.

That means it is not tied to the fortunes of the Australian economy. Instead, investors can gain exposure to global companies across technology, financials, healthcare, industrials, consumer goods, and communications.

Major holdings include Nvidia (NASDAQ: NVDA) and Apple (NASDAQ: AAPL).

I think this ASX ETF could work well as a foundation holding because it offers significant diversification in one trade. It was recently recommended by the team at Betashares.

Betashares Nasdaq 100 ETF (ASX: NDQ)

Another ASX ETF to consider is the Betashares Nasdaq 100 ETF.

This fund is more growth-focused than the BGBL ETF. It gives investors exposure to 100 of the largest non-financial companies listed on the Nasdaq exchange.

These companies are involved in some of the biggest shifts in the global economy, including artificial intelligence, cloud computing, digital advertising, software, ecommerce, streaming, chips, and consumer technology.

Holdings include Microsoft (NASDAQ: MSFT) and Amazon (NASDAQ: AMZN).

This ASX ETF can be volatile because it has a heavy tilt toward technology and growth shares. But for investors with a long-term view, it provides exposure to companies that are shaping how people work, shop, communicate, and use technology.

VanEck Global Semiconductor ETF (ASX: SMHG)

A final ASX ETF that could be worth a closer look is the VanEck Global Semiconductor ETF.

This is the most targeted option of the three. The fund gives investors exposure to companies involved in semiconductors and semiconductor equipment.

That makes it a way to invest in the chips behind artificial intelligence, cloud computing, data centres, electric vehicles, smartphones, automation, and advanced manufacturing.

Holdings include Taiwan Semiconductor Manufacturing (NYSE: TSM) and Nvidia.

This is unlikely to be a smooth ride. Semiconductor shares can be cyclical and sentiment can move quickly.

But the long-term theme is powerful. The modern economy needs more computing power, not less, and semiconductors sit at the centre of that demand.

This fund was recently recommended by the team at VanEck.

The post The best ASX ETFs to buy with $50,000 appeared first on The Motley Fool Australia.

More reading

• Investing in AI stocks on the ASX? Here’s what you should buy
• Top 3 ASX ETFs for a first-time investor in 2026
• 20% a year: Is this the ASX’s best index fund?
• Could the AI boom just be getting started for NextDC shares?
• How to invest $10,000 the Warren Buffett way: Buy businesses, not stocks

Motley Fool contributor James Mickleboro has positions in BetaShares Nasdaq 100 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon, Apple, BetaShares Nasdaq 100 ETF, Microsoft, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Amazon, Apple, Microsoft, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.