Retiring overseas

Last Updated
Friday, 26/04/2024

 

This page is for Australians thinking about retiring overseas. It only gives general advice. It's not a replacement for professional financial and legal advice. Always talk to an expert before making a significant life change.

Read this page along with our advice on living and working overseas and for older travellers.

Read on to learn about:

Trialling before you commit

Retiring overseas is a big decision that needs careful thought. Living in a country is very different to visiting it on holiday.

Consider a temporary move of 6-12 months before committing to a longer-term move. It’s important to make sure you’re comfortable, healthy and safe. A temporary move will help you understand:

  • the day-to-day culture. Every country has different cultural standards and expectations for its residents. Make sure it suits your lifestyle.
  • the standards of healthcare and other services. Living as a temporary resident will help you make sure these meet your expectations. And that you can access them.
  • the climate during the year. Climate can affect your health and wellbeing. It can also make existing health conditions worse. Some countries have extreme seasons.
  • your legal rights to live, work and rent or buy property and cars.
  • the practicalities of daily life. For example, utilities, transport, residential security and your neighbours.

Visas and residency

Think about:

Research what visa you'll need to live overseas long-term. Each country will have its own visa requirements.

  • Some may have 'non-lucrative' visa types for retirees. These will let you live in a country without working.
  • Most will need regular renewal. There is often a cap on the number of times you can renew.
  • You'll typically need proof of financial self-sufficiency before being given a long-stay visa.

If you plan to move permanently, you may be able to apply for a permanent residency visa. This can be complicated and take a long time. You may need to apply from outside the country you plan to live in. Take this into account when thinking about what visas you'll need.

Applying for residency overseas may affect your Australian tax residency status. Keep this in mind if you plan to bank in Australia or have an Australian superannuation fund. 

Learn more about residency for taxation purposes (Australian Taxation Office). 

Managing finances across borders

Think about:

  • how you'll support yourself financially, including contingency funds if something goes wrong
  • how you'll manage superannuation and pension payments
  • tax implications
  • where and how you'll do your banking
  • how exchange rates will impact your income.

Anyone moving overseas needs to ensure they can support themselves financially. This is especially true if you no longer work and rely on your super and pension to fund yourself.

Retiring overseas involves important financial decisions. These decisions will have an ongoing impact on your life. Get expert advice from a financial planner before making a final decision.

Super and pensions

Get financial advice about how your move could affect your superannuation. 

Super income and lump-sum payments may have tax concessions in Australia. But this might not be the case in the country you're retiring in. Make sure you understand the financial laws and tax implications specific to where you're moving.

If you live overseas, you may still be eligible for an Age Pension from the Australian Government. But it may be less than what you receive in Australia. Check with Services Australia. Ensure you understand how leaving Australia will affect your payments.

Banking, taxation and currency exchange

How to manage your banking is an important decision. Get financial advice about whether to bank in Australia or overseas. Your pension can be paid into an Australian or foreign account. It will be paid in local currency if you choose a foreign account. Check with Services Australia and ensure you understand before you go.

Understand the tax implications of living overseas. It can be complicated. Especially if you keep receiving payments from Australia. Expert financial advice may be crucial to avoid breaking tax laws or paying double taxes.

Also consider currency exchange rates when planning how to manage your money overseas. Exchange rates can go up and down. This will impact how much money you get and how far it goes.

Healthcare

Think about:

  • the standard of healthcare where you’re moving
  • the availability and cost of public healthcare
  • what will happen if you get critically unwell
  • the cost of international health insurance.

Access to healthcare is one of the most important things to consider when moving overseas. 

Before making a final decision:

  • research the healthcare system where you're thinking of retiring
  • ask your Australian doctor for advice.

Standards of healthcare can vary widely.

  • Many countries may not provide services to the standard you're used to.
  • The cost of healthcare overseas can be much higher than in Australia.

Make sure your medication is legal and available where you're retiring.

Medicare doesn't pay for medical treatment overseas. Neither do Australian private healthcare funds. Australia has reciprocal healthcare agreements with some countries. But public healthcare  will not cover you in most other countries. You'll have to pay the full fee for healthcare services.

Medical repatriation

You may have to pay for medical repatriation if:

  • you need more care than the local system can provide
  • you find yourself terminally ill and want end-of-life care in Australia
  • you're not medically fit to fly commercially.

Medical repatriation can cost hundreds of thousands of dollars.

Health insurance

International health insurance may cover your healthcare. It may also cover the cost of medical repatriation to Australia.Check the fine print of your policy. 

  • Policies can be costly. Consider this when planning your finances.
  • You may not be able to get insurance if you have pre-existing conditions.

Living overseas and Medicare

Only Australian residents can use Medicare. You can access Medicare for treatment in Australia up to 5 years after you move overseas. 

After 5 years, you won’t be able to access Medicare unless you move back to Australia to live. You’ll need to re-enrol before you can access payments. You must show proof you intend to stay in Australia to re-enrol. 

Relationships

Just like in Australia, relationships overseas can sometimes end badly. Be aware of your legal rights. Get independent local advice before you make big financial commitments. Particularly if your partner is a national of the country. You may not have the same rights as your local partner in some situations, such as owning real estate. 

Be aware of relationship scams

Unfortunately, it’s common for romance scammers to target older Australians. Romance scammers will fake affection to get access to your super and savings. 

If you plan to spend your retirement with someone you’ve met online, be sure about their intentions. Especially before cutting ties with Australia or committing large amounts of money. 

ScamWatch has advice about how to spot a romance scam.

Dying overseas and your estate

Think about:

  • your wishes and expectations if you die overseas
  • how to manage your will and estate
  • how your next-of-kin will be contacted.

Consider what will happen if you die outside of Australia. Repatriation of remains or an overseas funeral can be complicated and costly for your family. Talk to your family about your expectations. Put financial measures in place.

Review your will and estate if you plan to purchase a house or other assets overseas. Different countries have different laws around estate management. Get legal advice when making any significant purchases overseas.

Authorities will need to contact your next-of-kin if you die overseas. This can be difficult if you have no family in the country you’re living in. Have up-to-date contacts on documents such as your

  • most recent passport application
  • health insurance policy
  • will.

Support and safety nets

Think about:

  • what support services you can access as a non-citizen in a foreign country
  • how stable your financial and health situation is.
  • how to stay connected with friends and family back in Australia

You must consider what you would do if your retirement plans don't go smoothly. Think carefully about how you’ll manage with fewer support services available. Especially if your financial or health situation is uncertain.

In Australia, you can get support if you need financial help or long-term care. The support you can access from Australia is limited if you retire overseas. Local support services may not be available to you as a non-citizen. Research your destination. Find out what support is available for expatriates.

Returning to Australia is always an option. But you’ll need to be able to pay for flights. You’ll also need a plan for how to support yourself when you arrive, until you can access Australian support services. 

How the Australian Government can help

We can only give you limited support if you live overseas long-term. 

Read the Consular Services Charter for what the Australian Government can and can't do to help you overseas.

What we may be able to do

  • We can give you a list of local hospitals or doctors who speak English.
  • We can give you a list of local lawyers that speak English.
  • We can give some information on how to get prescribed medication locally.
  • We can contact your friends or family for you if you consent.
  • We can provide some voting services for Australian elections, in some locations.

What we can't do

  • We can't get you a new visa, visa extension or provide you with a letter of support.
  • We can't pay your bills, reinstate Centrelink payments, or arrange an early release of super.
  • We can't organise or pay for your health care or aged care.
  • We can't help you access local support services unavailable to expatriates.
  • We can't organise or pay for you to return to Australia.
  • We can’t pay for your funeral or the return of your remains to Australia.

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