Recent research from National Australia Bank Ltd (ASX: NAB)-owned MLC Australia reveals that a massive 68% of Australians feel unprepared for retirement. In fact, worryingly only 15% of the Australian public feel suitably prepared for it.
Whilst a lot of us will put off thinking about retirement, the sooner we put a plan in action the better. After all, according to ASIC's MoneySmart the average couple will need $59,160 per year to live a comfortable lifestyle in retirement. For singles the figure drops to $43,062 per year.
Creating a source of income in retirement will be key to living a comfortable lifestyle in my opinion. I believe investments in companies which have strong dividends and the potential to lift them considerably over the next decade or two are a great starting point.
Here are four shares which I believe could allow investors to live happily ever after:
ASX Ltd (ASX: ASX)
As the operator of the Australian Stock Exchange the company has a near-monopoly like status which is a big positive in my eyes. This should allow it to consistently grow both its earnings and its dividend at a solid and predictable rate for many years to come. In FY 2017 ASX shares are expected to provide investors with a fully franked 4.2% dividend according to CommSec.
Blackmores Limited (ASX: BKL)
Whilst the dividend of this leading health supplements company may take a slight step back this year after its meteoric rise in FY 2016, I believe in the long term it will grow substantially as the company increases its international sales. Success in China will be key. The early signs have been positive and I am confident that the company will build on this. Currently its trailing yield is a fully franked 3.6%.
Mantra Group Ltd (ASX: MTR)
One key driver of economic growth in Australia over the next decade is predicted to be tourism. As one of Australia's leading accommodation providers with 20,000 rooms under management, I believe Mantra is in a strong position for long-term earnings growth. Especially as its BreakFree, Mantra, and Peppers brands have all bases covered and cater to the budget, mid-range, and luxury markets. Mantra's shares are expected to provide a fully franked 4.4% dividend in FY 2017.
Retail Food Group Limited (ASX: RFG)
The master franchisor of brands including Gloria Jean's, Donut King, and Michel's Patisserie is expected to provide investors with a fully franked 4.7% dividend in FY 2017. Over the last 10 years the company has grown its dividend by an average of 18% per year. Although this growth is likely to slow over the next 10 years, I still believe its strong brands and international expansion plans will make it a fantastic addition to a retirement portfolio.
