Your superannuation isn’t just a savings pot for retirement; it can also generate a regular passive income to live off when you decide to quit work.

A $100,000 annual passive income generated completely from your superannuation balance is entirely possible.

This type of money sits well above the estimated cost for a comfortable retirement lifestyle. And it means your passive income will cover most of your expenses without needing to draw down aggressively on the rest of your balance. 

In retirement, you can move your superannuation from an accumulation phase to a retirement phase. This is where you can convert your savings into a regular income stream or withdraw lump sums. 

At this point, you can set up your superannuation to provide a regular income from your investment income, leaving the rest largely untouched, or you can withdraw dividend income in lump sums.

But the question is, how much do you need in your super to be able to earn this level of passive income when you transition to your pension phase?

Let’s take a look.

How much do I need in my superannuation to earn an annual passive income of $100,000?

To calculate the amount of superannuation you need, you’ll need to divide your annual passive income by the dividend yield of your portfolio.

The catch is that the answer changes depending on what that yield is.

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

This means that a portfolio with a dividend yield of say, 3%, generally needs to be double the size of one with a 6% dividend yield in order to earn the same passive income. 

Ok, what if my portfolio yields somewhere between 3% to 6%? How much do I need?

Say your overall portfolio has a dividend yield of around 3%, you’ll need a balance of around $3.3 million to earn $100,000 per year in passive income. That’s because $100,000 ÷ 3% = $3,333,333.

Of course, $3.3 million is a huge balance, and out of reach for most Australians.

But remember, as your yield increases, the required balance goes down. 

For example, if the yield of your portfolio is around 4%, your balance would need to be closer to $2.5 million to earn the same $100,000 annual dividend income.

For a 5% yielding portfolio, you’d need a balance of closer to $2 million.

And then a 6% yielding portfolio could generate $100,000 in passive income from a sound $1.6 million.

Give me some ideas of 4% to 5% yielding ASX shares that I can invest my superannuation in

There are many ASX dividend shares available for superannuation investment, and many of them yield around 4% to 5%.

But here are some of my top picks.

I’d consider defensive shares such as Telstra Group Ltd (ASX: TLS), Transurban Group (ASX: TCL), or Inghams Group Ltd (ASX: ING). 

Otherwise, insurance shares are generally resilient to market volatility. QBE Insurance Group Ltd (ASX: QBE), Medibank Private Ltd (ASX: MPL), and Insurance Australia Group Ltd (ASX: IAG) are all good options in this sector, and they generate a yield of around the 4% to 5% level at the time of writing.

Elsewhere, ASX energy shares are also able to generate reliable dividends for investors. Such as Origin Energy Ltd (ASX: ORG), Contact Energy Ltd (ASX: CEN), or Mercury NZ Ltd (ASX: MCY).

The post How much superannuation do I need to generate $100,000 per year in passive income? appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Woolworths Group vs Telstra Group: Which ASX blue chip pays better passive income?
• Buy, hold, sell: IDP Education, Macmahon Holdings, Transurban shares
• 5 things to watch on the ASX 200 on Thursday
• My favourite ASX passive income shares for retirees

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

The S&P/ASX 200 Index (ASX: XJO) suffered a pullback this Thursday, continuing the sell-off we have seen for much of this week. After spending the entire session in negative territory today, the ASX 200 ended up closing with a 0.77% loss. That leaves the index at 8,660.9 points.

This tough Thursday for ASX investors follows a similarly downbeat morning over on Wall Street.

The Dow Jones Industrial Average Index (DJX: .DJI) was hit hard, dropping 0.66%.

The tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) was a little tamer, but still fell 0.22%.

But let’s get back to the local markets now and dive a little deeper into what was happening amongst the different ASX sectors this Thursday.

Winners and losers

Despite the broader market’s losses, we still saw a few sectors make hay.

But first, it was mining stocks that were hit the hardest. The S&P/ASX 200 Materials Index (ASX: XMJ) was smashed, tanking 2.03%.

Gold shares found themselves in a similar vein, with the All Ordinaries Gold Index (ASX: XGD) crashing 1.38%.

Financial stocks had a day to forget too. The S&P/ASX 200 Financials Index (ASX: XFJ) sank 0.99% today.

Industrial shares were in the same ballpark, as you can see by the S&P/ASX 200 Industrials Index (ASX: XNJ)’s 0.92% dive.

Tech stocks also found themselves on the nose. The S&P/ASX 200 Information Technology Index (ASX: XIJ) took a 0.77% hit this session.

Healthcare shares were our last losers today, with the S&P/ASX 200 Healthcare Index (ASX: XHJ) dipping 0.12%.

Turning to the winners now, these were spearheaded by consumer staples stocks. The S&P/ASX 200 Consumer Staples Index (ASX: XSJ) soared up 1.42% this Thursday.

Energy stocks ran hot too, evident by the S&P/ASX 200 Energy Index (ASX: XEJ)’s 1.36% surge.

Utilities shares were also in demand. The S&P/ASX 200 Utilities Index (ASX: XUJ) added 1.34% to its total today.

Communications stocks didn’t miss out, with the S&P/ASX 200 Communication Services Index (ASX: XTJ) lifting 0.89%.

Nor did consumer discretionary shares. The S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) advanced 0.31%.

Finally, real estate investment trusts (REITs) got over the line, illustrated by the S&P/ASX 200 A-REIT Index (ASX: XPJ)’s 0.17% jump.

Top 10 ASX 200 shares countdown

Taking out the top index spot this Thursday was the stock market operator itself. ASX Ltd (ASX: ASX) shares had a blowout (relatively speaking) today, rising 3.84% to finish trading at $60.59 each.

There wasn’t any news out today that explains this leap higher, though.

Here’s how the other top stocks tied up at the dock:

ASX-listed company	Share price	Price change
ASX Ltd (ASX: ASX)	$60.59	3.84%
Lottery Corporation Ltd (ASX: TLC)	$4.96	3.77%
Domino’s Pizza Enterprises Ltd (ASX: DMP)	$22.00	3.38%
Xero Ltd (ASX: XRO)	$57.79	3.01%
Karoon Energy Ltd (ASX: KAR)	$1.58	2.93%
Beach Energy Ltd (ASX: BPT)	$0.86	2.99%
Woodside Energy Group Ltd (ASX: WDS)	$32.31	2.57%
AUB Group Ltd (ASX: AUB)	$27.69	2.48%
Minerals 260 Ltd (ASX: MI6)	$0.835	2.45%
Insurance Australia Group Ltd (ASX: IAG)	$8.04	2.16%

Our top 10 shares countdown is a recurring end-of-day summary that shows which companies made big moves on the day. Check in at Fool.com.au after the weekday market closes to see which stocks make the countdown.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

More reading

• Xero shares crash 63% in a year: Is there any upside left?
• The Lottery Corporation vs Aristocrat Leisure: ASX shares compared
• 5 things to watch on the ASX 200 on Thursday
• Here are the top 10 ASX 200 shares today
• Domino’s Pizza Enterprises vs Guzman y Gomez: Which fast food stock offers better value?

Motley Fool contributor Sebastian Bowen 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 Domino’s Pizza Enterprises, The Lottery Corporation, and Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool Australia has recommended Aub Group, Domino’s Pizza Enterprises, and The Lottery Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Woolworths Group vs Telstra Group shares: Which blue chip is better for passive income?

Looking for steady passive income from your investments? It’s hard to overlook two of Australia’s biggest blue-chip icons: Woolworths Group Ltd (ASX: WOW) and Telstra Group Ltd (ASX: TLS). Both are household names and staples in many portfolios — but which one deserves your cash if dividends and reliable returns are your top priority? Here’s how Woolworths shares stack up against Telstra shares for income-focused investors.

The case for Woolworths Group

Woolworths is a retail giant, dominating the Australian supermarket sector and also owning Big W in Australia plus several New Zealand grocery chains. With its vast network of stores and a brand reputation for reliability, Woolworths has been the go-to for grocery essentials for decades. According to its most recent public description, the company operates over 1,400 stores and employs a huge workforce across Australia and New Zealand.

From a dividend perspective, Woolworths has long been regarded as a defensive play: groceries and essentials tend to be in demand regardless of how the economy is faring, which can mean stable revenues and regular profits.

Top fundamentals include:

• Dividend yield of 2.53% (fully franked at 100%)
• P/E ratio of 41.38, which is on the high side compared to many other blue chips
• Year to date return of 33.6%, showing strong recent share price momentum

Woolworths has a long history of fully franked dividend payments, and its latest dividend was $0.52 per share, paid in September 2026.

The case for Telstra Group

Telstra is Australia’s largest and best-known telecommunications provider, spanning mobile, internet, and enterprise solutions. With a widespread network and a historic reputation for dividend consistency, Telstra is often viewed as a classic income stock. The company has been revamping its operations in recent years, with several subsidiaries under the Telstra Group banner after a 2022 restructure.

For those chasing passive income, Telstra ticks a few appealing boxes:

• Dividend yield of 4.37% (franked at approximately 90%) — comfortably beating Woolworths on headline yield
• P/E ratio of 24.17 — much lower than Woolworths, suggesting a more moderate valuation relative to recent earnings
• Year to date return of 3.1% — more subdued share price growth than Woolworths this year

Recent dividends have been $0.105 per share (final, September 2026) and $0.105 per share (interim, March 2026), mostly fully franked.

Valuation comparison

Here’s how Woolworths and Telstra stack up on the key valuation and dividend figures that matter most to income-oriented investors:

	Woolworths Group	Telstra Group
Market Cap	$46.57 billion	$53.58 billion
P/E Ratio	41.38	24.17
Dividend Yield	2.53% (100% franked)	4.37% (c.90% franked)
Dividend per Share	$0.97	$0.21
Earnings per Share	0.925	0.199

Note: Woolworths’ higher P/E ratio means investors are paying more for each dollar of reported earnings than with Telstra. Woolworths currently has full franking, which can be very valuable for those on lower tax rates or SMSF investors, whereas Telstra’s recent dividends have been about 90% franked.

Recent share price momentum

Looking at the most recent shared closing date of 6 October 2026:

• Woolworths closed at $38.12, down 0.42% on the day, but remains up a very strong 33.6% year to date.
• Telstra closed at $4.81, flat on the day, delivering a year to date return of 3.1%.

Which is the better buy?

For passive income seekers, Telstra Group stands out thanks to its much higher headline dividend yield (4.37% vs Woolworths’ 2.53%), plus a still-solid degree of franking on recent payments. While Woolworths easily takes the lead on recent share price gains, its yield is materially lower and its P/E ratio is far higher, suggesting it may be priced for stronger growth than is typically delivered by supermarket stocks.

That said, Woolworths’ defensive qualities and fully franked dividends remain attractive, especially for those wanting reliability in tougher economic climates. But if my main priority is income — particularly in the form of regular, meaningful cash flow — I’d lean toward Telstra Group right now. The yield is simply more generous, and it trades on a lower earnings multiple, which helps reassure me that I’m not overpaying for those dividends.

The post Woolworths Group vs Telstra Group: Which ASX blue chip pays better passive income? appeared first on The Motley Fool Australia.

More reading

• Here’s the dividend forecast out to 2029 for Woolworths shares
• My favourite ASX passive income shares for retirees
• How much passive income can I earn from a $950,000 superannuation balance?
• 3 defensive ASX shares I’d buy in a market sell-off
• How much must I invest in Telstra shares to earn a $1,000 passive income in 2027?

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 positions in and has recommended Telstra Group. 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 draft. 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.