If you're at or approaching retirement age, chances are you've been dedicating a lot of mental energy into planning out how you're going to fund your lifestyle over (hopefully) the coming decades, perhaps with ASX dividend shares.
Retirement obviously offers a lot of perks. However, it's arguably not even worth retiring if you are going to be worrying about how much money you might have and whether it will last until the inevitable shuffle from the mortal coil.
In contrast to a younger investor who might wish to maximise overall returns above all else, retirees have a different set of priorities when it comes to their investments. Predictable and meaningful dividend cash flow is a clear priority, alongside the sustainability and safety of said dividends.
With this in mind, let's discuss two ASX dividend shares today that I think fulfil these criteria and would serve a retiree (or pre-retiree) well.
Two ASX dividend shares to buy for retirement
ASX dividend share 1: Coles Group Ltd (ASX: COL)
Coles is a company we're all fairly familiar with. It is the second-largest grocery chain in the country and also operates several liquor chains, including Liquorland, First Choice, and Vintage Cellars.
I like Coles as a reliable income stock due to its defensive nature as a consumer staples share. Coles sells food, drinks, and household essentials – products that we mostly need to buy. This means that, as long as Coles is a relatively low-cost supplier of these essentials, it should always have a reliable earnings base from which to draw profits and dividends, regardless of the economic climate.
Coles has a great track record of delivering these dividends. It has raised its annual dividend payout every single year since 2019, including over the COVID-ravaged 2020 and 2021. Importantly, for an ASX dividend share, these dividends have always come with full franking credits attached, too.
Coles is currently trading on a dividend yield of 3.51%.
2: Westpac Banking Corp (ASX: WBC)
The big ASX bank shares certainly don't suit all investors, particularly at their current share prices. However, I think Westpac is a great investment to consider for anyone at or approaching retirement. This ASX dividend share is a famous income payer, boasting a hefty dividend yield for most of the past few decades.
Westpac's dividends have not been as consistent as those from Coles in recent years, given Westpac earnings' higher dependence on the health of the economy. That said, I still think that investors can sleep well at night with Westpac in their portfolios. This bank is mature, well-capitalised, and arguably protected by Australia's 'four pillars' banking policy and government deposit guarantee.
At current prices, this ASX dividend share offers a yield of 4.55%, which typically comes with full franking credits attached.
