The Australian share market is a great place to build a retirement portfolio.
But which ASX retirement shares are in the buy zone right now? Three quality options that could be worth considering are listed below. Here's what you need to know about them:
Aspen Group Limited (ASX: APZ)
Aspen Group could be an ASX retirement share to buy. It is a leading provider of quality affordable accommodation across residential, land lease, and holiday park communities.
Bell Potter rates the company so highly that it has named it on its favoured list again this month. It likes Aspen Group due to its sector agnostic, high return on equity focus on sub-sectors that are non-fungible and repeatable over time.
In addition, it highlights that Aspen's management have plenty of skin in the game and that its "valuation is undemanding."
Another positive is that Bell Potter expects some decent dividend yields from its shares. It is forecasting yields of 4.5% in FY 2025 and 4.85% in FY 2026. The broker currently has a buy rating and $2.40 price target on its shares.
Telstra Group Ltd (ASX: TLS)
Another ASX retirement share for investors to consider is Telstra.
There are few areas as defensive in the economy as telecommunications. Mobile phones and home broadband are must-haves for most consumers. So, whatever is happening in the economy, Telstra should continue to perform relatively positively.
In addition, with analysts expecting some good dividend yields from the telco giant's shares in the coming years, it could be a good source of retirement income.
For example, Goldman Sachs is forecasting fully franked dividends per share of 19 cents in FY 2025 and 20 cents in FY 2026. Based on the current Telstra share price of $3.93, this will mean yields of 4.8% and 5.1%, respectively.
Goldman has a buy rating and $4.35 price target on its shares.
Vanguard Australian Shares High Yield ETF (ASX: VHY)
A third option for investors to consider for their retirement portfolio could be the Vanguard Australian Shares High Yield ETF.
Rather than investing in a single stock, this ETF allows investors to buy a slice of a large group of dividend-paying stocks in one fell swoop.
Vanguard notes that this is a group of ASX dividend shares that brokers are forecasting larger than average dividend yields from in the near term. But don't worry, you're not just buying banks or miners. It has diversification in mind and ensures that the portfolio is filled with companies from all corners of the market. This includes BHP Group Ltd (ASX: BHP), Coles Group Ltd (ASX: COL), Commonwealth Bank of Australia (ASX: CBA), and Telstra Group.
At present, the Vanguard Australian Shares High Yield ETF trades with a dividend yield of 4.8%.
