Retirement investing does not have to be all about chasing the highest dividend yield.
I would still want businesses that can grow over time, while also providing some income along the way.
These three ASX shares would be on my list.
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Wesfarmers Ltd (ASX: WES)
Wesfarmers is one of the first ASX shares I would consider.
The group owns businesses including Bunnings, Kmart, Officeworks, and Priceline, giving it several sources of earnings across different parts of the Australian economy.
For retirement investors, I like the combination of established businesses and room for further growth.
Bunnings has built a powerful position in home improvement, while Kmart continues to benefit from its focus on affordable products. Wesfarmers also has the financial strength to invest in existing businesses or pursue new opportunities when management sees attractive returns.
The company has also paid dividends consistently over many years.
Commonwealth Bank of Australia (ASX: CBA)
CBA would give me a more traditional source of income.
The bank generates substantial profits from its large customer base across home lending, deposits, business banking, and other financial services.
That has allowed it to return significant amounts of cash to shareholders through fully franked dividends.
Australian banking is a mature industry, so I would not expect rapid earnings growth.
But for retirement, I would be comfortable owning a high-quality business capable of producing substantial cash flow while still gradually increasing earnings over time.
CBA is rarely the cheapest bank on the ASX, but I would be willing to pay a little more for what I think is the strongest banking business in Australia.
Sigma Healthcare Ltd (ASX: SIG)
Sigma would be the more growth-focused choice of the three ASX shares.
Following its combination with Chemist Warehouse, the company now has exposure to one of Australia's best-known pharmacy brands alongside a major pharmaceutical distribution operation.
I think there are several ways the business can become larger over the next decade.
Chemist Warehouse continues to expand its store network, while international markets such as New Zealand and the United Kingdom provide additional room for growth.
Sigma can also benefit from the wider pharmacy ecosystem, including distribution, retail sales, online channels, and relationships with suppliers.
While its dividend yield is not the largest, if the company can expand earnings over time, there should be greater scope for shareholder returns to increase.
Foolish takeaway
For me, retirement would not mean giving up on growth.
I would want some dependable income, but I would also want businesses capable of becoming more valuable over the years ahead.
Wesfarmers, CBA, and Sigma each offer a different balance between those two goals, which is why I would be comfortable considering any of them for a long-term retirement portfolio.
