Certain ASX passive income ideas could be excellent picks to make $400 per month of dividends in 2027.

If dividend income is a key focus, then I’d want to concentrate on names that can provide defensive and even growing payouts.

I like stocks with defensive earnings because they’re more likely to sustain future passive income payouts. Let’s look at two top contenders.

Medibank Private Ltd (ASX: MPL)

Medibank is the leading private health insurance business in Australia with its Medibank and ahm brands.

In my view, the company has defensive earnings because healthcare is an essential service, particularly for older Australians.

Australia’s ageing and growing population gives the company compelling earnings tailwinds in the coming years.

The Medibank annual dividend was hiked by 6.7% in FY26 to 19.2 cents per share, following a 6.7% rise in group operating profit to $813.5 million.

I think the dividend is likely to grow again in FY27 because of the positive outlook comments.

It’s looking to grow market share with resident policyholders, it expects to deliver “solid” gross profit growth with non-resident private health insurance. The Medibank health segment profit is expected to grow 25%, and it continues to look for useful bolt-on acquisitions.

The passive income projection on Commsec suggests the business could pay an annual dividend per share of 21.5 cents in FY27. That would be a grossed-up dividend yield of 6.7%, including franking credits, at the time of writing.

Rural Funds Group (ASX: RFF)

The other ASX passive income idea I want to highlight is this real estate investment trust (REIT) which owns farmland across Australia.

The farms it owns include almonds, cattle, macadamias, cropping, and vineyards. Those properties are spread across Australia’s mainland states, though Queensland and NSW account for most of the Rural Funds portfolio in dollar terms.

I think it’s a pleasing option for passive income because it pays a distribution quarterly, and the distribution yield is solid.

It has maintained its annual distribution at 11.73 cents per unit in the last few years amid high interest rates, which I think is a pleasing record of stability.

I think there’s good scope for future distribution growth because of the rental indexation built into its lease contracts. Some of Rural Funds’ rent grows at a fixed annual rate each year, while a significant portion of the rest grows in line with inflation.

It expects to pay an annual distribution per unit of 11.73 in FY27, which translates into a forward distribution yield of 5.9%.

$400 per month of passive income

I think both of the above businesses are among the top ASX passive income share options. To generate $400 per month, we’re talking about an annual goal of $4,800.

Between them, those two ideas have an average dividend yield of 6.3%, if we include the franking credits. Therefore, with a total investment of $76,191, someone could generate that target dividend amount.

But these aren’t the only stocks I’d choose to buy for dividend income.

The post 2 ASX passive income ideas I’d use to generate $400 a month in 2027 appeared first on The Motley Fool Australia.

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• Buy, hold, sell: Medibank Private, Ansell, South32 shares

Motley Fool contributor Tristan Harrison has positions in Rural Funds Group. 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 Rural Funds Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

There is likely something fun about checking your superannuation in your 50s because the numbers can start moving surprisingly quickly.

By this stage, many Australians have been receiving compulsory super contributions for decades, while a larger balance gives investment returns more money to work with. 

At the same time, retirement is close enough that knowing whether you are ahead, behind, or somewhere around the middle becomes increasingly relevant.

So, what does the average Australian actually have in super at 50 and 55?

The average superannuation balance at 50

The latest figures published by Moneysmart, using Australian Prudential Regulation Authority data, group Australians into five-year age ranges rather than individual ages.

For Australians aged 50 to 54, the average superannuation balance is now $190,500.

That provides the best current guide for someone turning 50, although an individual balance could obviously be much higher or lower depending on income, career breaks, investment performance, and whether additional contributions have been made.

The figure also shows that reaching 50 does not mean the heavy lifting is finished. Someone at the beginning of this age bracket could still have 17 years before reaching Age Pension age, leaving considerable time for further contributions and investment growth.

What about at age 55?

Move forward one age bracket and the average rises meaningfully.

Australians aged 55 to 59 have an average super balance of $234,700, which is $44,200 higher than the average for those aged 50 to 54.

That increase is a good reminder of what can happen during the latter stages of a career. Contributions continue to arrive, while returns are compounding on a larger pool of savings than earlier in life.

For someone turning 55, there may also be opportunities to direct more money towards super if household finances allow, particularly if mortgage repayments or other major expenses have started to ease.

How does that compare with retirement needs?

Moneysmart currently points to an Association of Superannuation Funds of Australia estimate of $630,000 for a single homeowner seeking a comfortable retirement at age 67.

That makes the average balances at 50 and 55 look some distance away from the eventual target, but it is important not to compare them too literally. These Australians still have years of potential contributions and investment returns ahead of them, while couples can also combine their retirement resources.

Housing, other investments, how much you have in your Commonwealth Bank of Australia (ASX: CBA) savings account, expected spending, and eventual Age Pension eligibility can all substantially change how much super someone needs.

For anyone around 50 or 55, the average is therefore best treated as a checkpoint rather than a goal. A balance of around $190,500 or $234,700 shows what Australians in these age groups currently have, but whether it is enough depends far more on where you want to be when work eventually ends.

The post Here’s the average Australian superannuation balance at 50 and 55 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.

The value of assets you can own, and the amount you can earn, while still qualifying for the age pension will rise next Sunday.

The changes reflect indexation adjustments, which are made twice per year, to keep up with inflation.

Pension payments will also go up.

Single pensioners will receive an extra $36.80 per fortnight under the inflation adjustments from 20 September.

That will take the full pension payment up to $1,237.70 per fortnight.

Couples will get an extra $27.80 per partner, per fortnight.

That will raise the full pension payment to $933 per partner, per fortnight.

Are you eligible for the age pension?

Australians born on or after 1 January 1957 are eligible for the pension at age 67, whether retired or not.

The pension is subject to an assets test and income test.

If you own or earn too much, you may only qualify for a part-pension, or no pension at all.

Let’s look at the numbers.

How much can you own under the assets test?

Australians will be able to own more from 20 September and still qualify for at least a part-pension under changes to the assets test.

A primary place of residence is excluded from the assets test.

Everything else, including superannuation, ASX shares, bonds, rental properties, and cash, is assessable.

If you rent your home, you are allowed to own more in assets while still qualifying for the age pension.

Under this next round of indexation changes, only the upper thresholds for the assets test are changing.

Single homeowners whose assets are worth less than $333,000 qualify for a full pension.

Single homeowners whose assets are worth between $333,001 and $745,750 (up from $733,500) will be eligible for a part-payment.

Non-homeowner singles whose assets are worth less than $600,000 qualify for the full payment.

Non-homeowner singles who have between $600,001 and $1,012,750 (up from $1,000,500) in assets will qualify for a part-pension.

Couple homeowners whose assets are worth less than $499,000 qualify for a full pension.

Couple homeowners who have between $499,001 and $1,121,000 (up from $1,102,500) in assets will qualify for a part-payment.

Non-homeowner couples whose assets are worth less than $766,000 qualify for the full payment.

Non-homeowner couples who have between $766,001 and $1,388,000 (up from $1,369,500) in assets will qualify for a part-pension.

How much can you earn while still getting the pension?

Australians will also be able to earn a bit more from 20 September while still qualifying for at least a part-pension.

Under this next round of indexation changes, only the upper thresholds for the income test are changing.

Singles who earn less than $226 per fortnight qualify for the full payment.

Singles who earn between $227 and $2,701.40 (up from $2,627.80) per fortnight will qualify for a part-payment.

Couples who earn less than $396 per fortnight qualify for the full payment.

Couples who earn between $397 and $4,128 (up from $4,016.80) per fortnight will qualify for a part-pension.

As usual, a pensioner’s annual investment income (with the exception of rental income) is determined by deeming rates.

The deeming rates will go up on 20 September.

The lower deeming rate will be 1.75% for the first $66,800 worth of assets for singles and the first $110,600 for couples combined.

Everything above these amounts will be deemed to have earned the new upper deeming rate of 3.75%.

The post How much can Australian pensioners own and earn under new rules starting next week? 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.