{"id":526508,"date":"2026-07-15T01:27:08","date_gmt":"2026-07-15T01:27:08","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/526508\/"},"modified":"2026-07-15T01:27:08","modified_gmt":"2026-07-15T01:27:08","slug":"how-much-superannuation-is-needed-to-target-a-100000-annual-passive-income","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/526508\/","title":{"rendered":"How much superannuation is needed to target a $100,000 annual passive income?"},"content":{"rendered":"

Superannuation<\/a> is a very effective tool for investors to generate returns with a lower tax<\/a> rate. It could be a very useful way to invest for Aussies wanting passive income<\/a>.<\/p>\n

The main reason it’s so appealing is that superannuation has a lower tax rate compared to many individuals, trusts and companies. I believe the nature of the superannuation structure, and how Aussies access that money in retirement, enable investors to invest for the long-term.<\/p>\n

Receiving passive income is one of the rewarding elements of owning ASX shares with how little effort we need to put in for the ongoing dividend<\/a> payments.<\/p>\n

In my opinion, the passive income we receive after tax is a more important figure than the before-tax figure, because that’s what investors get to keep.<\/p>\n

Superannuation can have a tax rate as low as 0% in retirement. That’s great. In the accumulation phase, the superannuation 15% tax rate on income is lower than what many individuals or companies may experience.<\/p>\n

Every household may have a different tax situation, so I’ll just focus on a specific dividend income target and won’t refer to tax rates from now on.<\/p>\n

\"Man<\/p>\n

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

How much is needed in superannuation for $100,000 of annual passive income?<\/p>\n

Receiving $100,000 in dividends each year would be wonderful, in my opinion. I’d love to receive that much, though I’ve got a long way to go to get there.<\/p>\n

There are a variety of asset classes that investors can consider for income such as term deposits, bonds<\/a>, property and shares.<\/p>\n

I think that ASX shares are the best choice for passive income, partially thanks to the excellent bonus of franking credits<\/a>.<\/p>\n

The portfolio size required to earn $100,000 depends on the size of the dividend yield<\/a>.<\/p>\n

As an example, a portfolio with a 5% dividend yield would require a $2 million portfolio. If a portfolio had a dividend yield of 6%, it would need a $1.67 million portfolio.<\/p>\n

Different dividend yields require different-sized portfolios to reach that $100,000 of passive income from superannuation.<\/p>\n

The sorts of ASX dividend shares I’d buy<\/p>\n

Within the ASX share space, there are a few different types of dividend options that offer good dividend yields, such as real estate investment trusts (REITs)<\/a>, S&P\/ASX 300 Index (ASX: XKO) shares and compelling listed investment companies (LICs)<\/a>.<\/p>\n

Some of the businesses I’d consider with a lower-to-medium dividend yield include Washington H. Soul Pattinson and Co. Ltd (ASX: SOL<\/a>), Wesfarmers Ltd (ASX: WES<\/a>), Australian Foundation Investment Co Ltd (ASX: AFI<\/a>) and Telstra Group Ltd (ASX: TLS<\/a>).<\/p>\n

Some of the higher-yielding names I’d consider include WCM Global Growth Ltd (ASX: WQG<\/a>), Future Generation Global Ltd (ASX: FGG<\/a>), Future Generation Australia Ltd (ASX: FGX<\/a>), Centuria Industrial REIT (ASX: CIP<\/a>) and Dexus Industria REIT (ASX: DXI<\/a>). <\/p>\n

There are even more ASX dividend shares that superannuation investors could consider for passive income, but I think the above names are a useful starting list.<\/p>\n","protected":false},"excerpt":{"rendered":"Superannuation is a very effective tool for investors to generate returns with a lower tax rate. It could…\n","protected":false},"author":2,"featured_media":526509,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[138,246,111,139,69,244,245],"class_list":["post-526508","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\/526508","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=526508"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/526508\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/526509"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=526508"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=526508"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=526508"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}