Thinking of retiring overseas? Check out this guide first (2024)

Pick an overseas dream destination: wouldyou like to retire there?

It’s a dream for many Australians to retire to another country, but could this be your reality?

It may be sunning yourself on a foreign shore, it may be the cultureandit could even be the cheaper cost of living, but whateverthe reason, the following tips will help you make your decision before you farewell Australia for good.

Money, money, money

Before you start looking, your first step isto get someprofessional advice.

Moving to another country isnot like a fancy tree changeto another state.Youare going tohave to do some serious research into what you can and cannotafford,the tax implications, how youare going tosupport yourselfandwhat support you can expect from the Australian government.

Unless you have a high level of financial literacy, youare going toneed some professional advice.

Some of the financial issues you should raise with an adviser should include:

• Will you need to work to support yourself, and are you eligible to work in another country?
• The taxation on, and access to, your super.
• What pension paymentsyou willbe eligible forandhowthey willbe paid.
• What health insuranceyou canaccessandifyou will still be eligible for Medicare if you return to Australia.Is there is a reciprocal healthcare agreement withAustralia? These reciprocal agreements allow Australians to access some healthcare for free in certain countries, however, there are limitations on what’sbeen negotiatedandeach country has different rules. Find out morehere.

• Housing–some countries do not allow foreigners to buy property.

Try before you buy

So you have a financial plan, but part of that plan should includea trialliving in your target destination for at least six months, 12 months if possible.

This allows you to make your mind up before making one of thebiggestlife decisions ever. So, no pressure.

Issues you should consider include:

• Available healthcare:retiring to another country because it’s cheap may also mean a considerable drop in healthcare standardsjustwhen you need them the most.
• The weather: warmer climes often come with a monsoonal rainy season that will rot your clothes, andcolder ones with a winter that may never seem to end.
• Everyday culture:if you have enjoyed a holiday at your proposed destination, that is a vastly different experience from living there.

Think about a normal day. You may have had a day at work in a clean, well-supported workplace with plenty of wifi. On the way home in yourinlate modelcaryou have driven on well-maintained roads and popped into the supermarket for something quick for dinner. Sounds like an ordinary day, right?

Well, allofthose things may not be possible in a country that’s cheaper to livein,but in no way matches our living standards.

Take just about any Pacific island nation for, anexample, all withany amount ofbeautiful five-star resorts for tourists. But step back into everyday lifeandit’s like another country again. Poorsanitation and housing, simmering cultural tensionsandhigh living costs.

Experiencingtheculture, delightsanddifficultiesof another countryon a day-to-day basis is the only way to make up your mind about your desired new home.

Visas and residencies

There should be some serious investigation as to your residency status when you move to another country on a long-term basis or forever.

You may qualify for a visa for retirees.Thismaybelabelledas something else, but it’sbasicallya tempter to attractrichretirees to a country that wants your foreign cash. As a rule, they also mean you don’t have to work to stay.

You should also check out when and how manytimesyou can renew your visa. You don’t want to go through all the hassle of uprooting your life and then findingtwo years lateryour visa has run outpermanently.Awkward.

Whatever the visa, if it’s for a long-term or permanent stay, you will almost always need to provide some evidence of financial self-sufficiency.

What’s your backup?

What if it doesn’t work out? You could hateit,or suddenly need a high level of healthcare or cheaper healthcare.

What if you only want to spend a few years living overseas? Do you have a plan?

You may not be ableto affordto move back to your old stomping ground with Australia’s escalating housing prices. You may have lost touch with family and friends who have moved on, so slotting back into your old life may not be possible.

Always take the long view and keep open the possibility that you may have to return to Australia – whateverthe reason.

Are you considering retiring overseas? Why not share your experience in the comments section below?

Also read: Retirement age for Aussies jumps