Term deposits have historically been great options for investors looking to generate an income in retirement.
However, at present the two to five-year term deposits on offer from Commonwealth Bank of Australia (ASX: CBA) come with an interest rate of just 1.25% per annum on deposits of $50,000 and over.
This is broadly in line with what is on offer with the rest of the major banks.
As the current inflation rate is 1.7%, this means means that any funds invested in these term deposits are actually diminishing in real terms.
In light of this, I would suggest income investors consider switching their funds into one of these ASX dividend shares that offer greater yields:
Aventus Group (ASX: AVN)
Aventus is the largest fully integrated owner, manager and developer of large format retail centres in Australia. In FY 2019 it completed a record number of leasing deals thanks to strong demand from many of Australia's biggest retailers. This led to it recording a sky high occupancy rate and like-for-like net operating income growth of 3.5%. Pleasingly, management expects more of the same in FY 2020. It has forecast FY 2020 FFO per security growth of 3% to 4% and a 3% lift in its distribution to 17.1 cents per unit. This equates to a 5.8% distribution yield.
National Storage REIT (ASX: NSR)
Another dividend share I would consider buying is National Storage. Through its network of 168 storage centres, National Storage provides tailored storage solutions to over 60,000 residential and commercial customers. Management believes it still has plenty of opportunities to grow its network through a combination of acquisitions and developments. I expect this to underpin solid distribution growth over the next decade. At present the company's shares provide a 5% trailing distribution yield.
Transurban Group (ASX: TCL)
A final dividend share to consider buying is toll road operator Transurban. With congestion on arterial roads worsening each year, it is no surprise to learn that its portfolio of toll roads continues to see vehicle numbers grow. Especially given the time-savings that its roads provide. In FY 2019 its customers collectively saved 374,000 hours in travel globally. This is 14% higher than the same period a year earlier. I believe this gives Transurban a lot of pricing power, which bodes well for its distribution growth in the future. This year Transurban intends to increase its distribution to 62 cents per security, which works out to be a forward 4.1% distribution yield.
