Looking to invest some of your superannuation savings in ASX shares to earn an extra $60,000 of passive income in 2027?
Here's what you need to know before investing a single dollar of your super balance.
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Franking credits and diversification
Whether you're investing from your savings account or tapping into your superannuation, if you're after passive income, I recommend sticking to the larger end of the market. So, generally, S&P/ASX 200 Index (ASX: XJO) dividend stocks.
These tend to have less volatile share price moves and more stable dividend payments than small-cap ASX dividend shares.
I'd also preference ASX 200 shares paying fully franked dividends. This gives you credit for the 30% in taxes the companies you're buying have already forked over to the ATO on the profits they made.
Then there's the crucial 'don't put all your eggs in one basket' rule.
If you're investing a sizeable portion of your superannuation savings to target $60,000 of passive income in 2027, then you'll want to invest in a diverse range of say 15 to 20 stocks.
Ideally these will operate in various sectors and locations. This will reduce the risk of your passive income stream taking an outsized hit if any single company or sector runs into a rough patch.
And finally, keep in mind that the dividend yields you generally see quoted are trailing yields. Future yields may be higher or lower depending on a range of company specific and macroeconomic factors.
With that said…
How much superannuation do I need to invest for a $60,000 passive income?
Precisely how much superannuation you'll need to invest to achieve your 2027 $60,000 passive income goal will, of course, depend on the yield you achieve from the ASX shares you're buying.
Using the below three diverse ASX 200 dividend stocks as an example, here's what you might expect, without needing to draw down on your initial investment.
First up, Westpac Banking Corp (ASX: WBC) shares.
Over the past full year, Westpac paid two fully franked dividends, totalling $1.54 a share. At the recent Westpac share price of $34.23, the ASX 200 bank stock trades on a fully franked 4.5% trailing dividend yield.
Next up, I'd look at investing some of my superannuation into ASX 200 coal stock New Hope Corp Ltd (ASX: NHC).
New Hope paid a 10 cent per share fully franked interim dividend on 20 April. The 30 cent per share final dividend is still up for grabs. To score that, you'll need to own New Hope shares at market close this Friday. You can then expect to get paid on October.
At the recent share price of $6.57, New Hope shares trade on a fully franked dividend yield (partly trailing, partly confirmed) of 6.1%.
And third, we have ASX 200 telco Telstra Group Ltd (ASX: TLS).
Over the past year Telstra has paid out two 90% franked dividends totalling 21 cents per share. At the recent share price of $4.83, Telstra shares trade on a 4.4% trailing dividend yield.
If you were to invest the same amount of your superannuation into each of the above ASX 200 dividend stocks, you could expect to earn a yield of 5.0%.
To earn $60,000 of passive income in 2027 you'd then need to invest $1.2 million today.
