{"id":441169,"date":"2026-05-23T05:46:08","date_gmt":"2026-05-23T05:46:08","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/441169\/"},"modified":"2026-05-23T05:46:08","modified_gmt":"2026-05-23T05:46:08","slug":"how-much-is-needed-in-superannuation-to-target-a-7500-monthly-passive-income","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/441169\/","title":{"rendered":"How much is needed in superannuation to target a $7,500 monthly passive income?"},"content":{"rendered":"

After the recent Federal budget changes to trusts, and negative gearing and capital gains for individuals, superannuation<\/a> may be the best way to invest for full-time working Australians who want passive income<\/a>. \u00a0<\/p>\n

Superannuation has a low tax<\/a> rate compared to individuals, trusts and companies. Plus, it’s easy to invest for the long-term through the investment vehicle.<\/p>\n

It’s important to remember that the net income is an after-tax figure. An Australian working full-time could lose approximately a third of their passive income return to tax.<\/p>\n

Therefore, investing in superannuation is a much more appealing prospect compared to other options. Superannuation has a lower tax rate in the accumulation phase than the standard individual tax rates for a full-time earner. In retirement<\/a>, the tax rate could be 0%.<\/p>\n

However, every Australian’s tax position is different, so we’re going to look at targeting a particular income level without mentioning tax any further.<\/p>\n

\"Hand<\/p>\n

Image source: Getty Images<\/p>\n

How much is needed in superannuation for $7,500 of monthly passive income<\/p>\n

Receiving $7,500 in dividends per month translates into $90,000 per year. I reckon many Australians would love to receive that level of dividends each year without having to do any ongoing work for it.<\/p>\n

Australian investors need to decide what investments they want to own and the dividend yield<\/a> that comes with that.<\/p>\n

A portfolio with a dividend yield of 7% can be half the size of a portfolio with a dividend yield of 3.5% and earn the same level of passive income.<\/p>\n

For example, if a portfolio were $1.3 million in size, it would generate $91,000 of annual passive income with a 7% dividend yield. If a portfolio had a dividend yield of 3.5%, the portfolio would need to be $2.6 million in size to generate the same level of cash payments.<\/p>\n

To generate almost exactly $90,000 of annual passive income with a 7% dividend yield, an investor would need a portfolio size of $1.286 million.<\/p>\n

A 5% dividend yield would require a portfolio size of $1.8 million to make $90,000 annually.<\/p>\n

A 4% dividend yield would require a portfolio size of $2.25 million.<\/p>\n

The types of ASX dividend shares I’d want to buy<\/p>\n

If a superannuation investor is targeting mid-to-higher dividend yields, then I’d look at reliable and discounted real estate investment trusts (REITs)<\/a>, growing companies with a generous dividend payout ratio<\/a> and listed investment companies (LICs)<\/a> with a good track record of dividends.<\/p>\n

Appealing businesses with a dividend yield of around 5% to 6%, in my view, include WCM Quality Global Growth Fund (ASX: WCMQ<\/a>), Telstra Group Ltd (ASX: TLS<\/a>), Rural Funds Group (ASX: RFF<\/a>), Centuria Industrial REIT (ASX: CIP<\/a>), Australian Foundation Investment Co Ltd (ASX: AFI<\/a>) and Argo Investments Ltd (ASX: ARG<\/a>). <\/p>\n

Businesses with a higher dividend yield include Future Generation Global Ltd (ASX: FGG<\/a>), Future Generation Australia Ltd (ASX: FGX<\/a>), Hearts and Minds Investments Ltd (ASX: HM1<\/a>), WCM Global Growth Ltd (ASX: WQG<\/a>), WAM Leaders Ltd (ASX: WLE<\/a>), WAM Microcap Ltd (ASX: WMI<\/a>) and Charter Hall Long WALE REIT (ASX: CLW<\/a>).<\/p>\n","protected":false},"excerpt":{"rendered":"After the recent Federal budget changes to trusts, and negative gearing and capital gains for individuals, superannuation may…\n","protected":false},"author":2,"featured_media":441170,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[138,246,111,139,69,244,245],"class_list":["post-441169","post","type-post","status-publish","format-standard","has-post-thumbnail","category-personal-finance","tag-business","tag-finance","tag-new-zealand","tag-newzealand","tag-nz","tag-personal-finance","tag-personalfinance"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/441169","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=441169"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/441169\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/441170"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=441169"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=441169"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=441169"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}