Generating consistent, tax-effective income is one of the biggest financial goals in retirement.

With interest rates still falling and living costs rising, retirees are increasingly looking to ASX shares that can deliver reliable, fully franked dividends or stable distributions — without taking on unnecessary risk.

If you're looking to set your portfolio up for regular passive income in retirement, here are three key areas of the ASX worth considering right now.

Blue chip dividend shares

For decades, large-cap ASX shares like banks, telcos, and infrastructure businesses have provided the foundation of income portfolios. That hasn't changed. What has changed is that some of these shares are offering more compelling yields than others right now.

Companies such as Coles Group Ltd (ASX: COL), Telstra Group Ltd (ASX: TLS), and APA Group (ASX: APA) continue to offer attractive dividends backed by stable cash flows and clear payout strategies. Telstra, for example, is expected to increase its dividend as it delivers on its Connected Future 30 strategy, with analysts forecasting a fully franked dividend yield above 4%.

The advantage here is predictability. These companies may not be the fastest growers, but they tend to pay dependable dividends year after year. This is exactly what most retirees need.

ETFs

For those seeking income with built-in diversification, dividend ETFs can be a smart solution. The Vanguard Australian Shares High Yield ETF (ASX: VHY) is one of the most popular options, offering exposure to a basket of high-yielding Australian shares. It pays quarterly distributions and includes many of the big-name dividend payers you'd want in a retirement portfolio.

Another option is the Betashares S&P 500 Yield Maximiser Complex ETF (ASX: UMAX), which uses a covered call strategy to generate sizeable income from its holdings.

Other options

Adding exposure to real assets — such as listed property or infrastructure — can help retirees generate income that holds up over time, even during periods of inflation.

REITs like Rural Funds Group (ASX: RFF) and infrastructure plays like Transurban Group (ASX: TCL) pay steady, often inflation-linked distributions. While these may not offer the same franking benefits, they do provide a valuable layer of diversification — especially for income outside of the financial and resources sectors.

Foolish takeaway

Retirement income doesn't have to come with stress or speculation. A smart blend of blue chip dividend shares, income ETFs, and real assets can provide the consistency and simplicity many retirees are after.

With the new financial year approaching, now is a great time to review your income strategy — and ensure your portfolio is built to deliver, year in and year out.