A balanced retirement can involve a healthy superannuation alongside passive income from dividend shares.
This combination can provide greater financial flexibility, helping retirees cover regular expenses while maintaining their long-term savings.
By diversifying income sources, retirees may also reduce their reliance on any single investment and create a more sustainable financial position throughout retirement.
One sector that has long provided strong passive income is ASX financial shares.
Image source: Getty Images
ASX financial stocks and passive income
ASX financial stocks have long been popular with income-focused investors.
Established banks and insurers make up a strong portion of this sector.
These companies have historically generated reliable earnings and returned a significant portion of those profits to shareholders through dividends.
Australia's mature financial sector, strong household and business lending markets, and the importance of banking and insurance to the broader economy have supported the ability of leading companies to generate recurring cash flow.
While dividends are never guaranteed and can fluctuate with economic conditions, interest rates and regulatory requirements, the sector's history of shareholder distributions has made financial stocks a prominent source of potential passive income for Australian investors.
With that in mind, here are three great options that can provide passive income alongside your superannuation.
Bank of Queensland Ltd (ASX: BOQ)
While many investors turn to the big four banks, there are other options offering better dividend yields right now.
One such option is the Bank of Queensland.
It is one of Australia's largest regional banks still operating independently of the 'Big Four' banks. The company offers home loans, personal finance, and commercial loans and operates both owner-managed and corporate branches.
At the time of writing, it is offering a dividend yield over 6%, outpacing its peers in the banking sector, including the big four.
Looking to capital gain potential, it has also drawn a buy recommendation from the team at Morgans recently.
Bendigo and Adelaide Bank Ltd (ASX: BEN)
Bendigo and Adelaide Bank is another big four alternative offering an attractive yield right now.
It operates in the personal, small business, and rural banking sectors.
At the time of writing, it is offering a yield of roughly 5.6%.
The last two dividends that this bank funded, worth 30 and 33 cents per share respectively, were fully franked.
Helia Group Ltd (ASX: HLI)
Another high yield option to supplement your superannuation is Helia Group.
The company engages in the provision of lenders mortgage insurance.
It recently declared a fully-franked interim dividend of 16 cents per share and an unfranked interim special dividend of 27 cents per share for the first half of the year.
Combined, this takes its yield to over 7%.
Importantly, the ex-dividend date for the dividend is set at 21 August, with the dividends to be paid on 4 September.
