What to know before you retire overseas

Fancy spending the rest of your days sipping pina coladas on a tropical beach far away from the cares of home?

Be careful what you wish for, because a permanent move overseas is very different from a holiday.

Retiring to a foreign country is a big decision that requires careful thought. It may be a good idea to consider a temporary stay abroad of 6-12 months before committing to a longer-term move.

A temporary stay will help you make sure you’re comfortable, healthy, and safe. When planning for a temporary move visiting Smartraveller can help you understand:

• The cultural norms of the country you intend to call home
• The standard of healthcare and other services
• The climate at different times of year
• Your legal rights, including property ownership and driving
• The practicalities of daily life, including transport, security, and the reliability and cost of utilities (including the internet).

While your Australian passport is a strong document that enables you to obtain tourist visas to many countries, don’t assume you can just live where you like.

You’ll need to establish the kind of visa you need, how long you can stay and how much it will cost, whether you can apply for permanent residency, and what your tax status will be both in the new country and back home.

Rules about visas vary from country to country, and they can change – sometimes quickly and dramatically. Smartraveller.gov.au has advice on over 175 destinations, and by subscribing for updates you can make sure you always have the latest information.

Most countries will require you to prove you are financially self-sufficient before they allow you to stay.

Have a good think about how much money you’ll need to retire in a foreign country.

There are many online resources about the cost of living in popular expat destinations, but you may find that things are very different on the ground than they are on the internet.

As always when it comes to big money decisions, you should get expert advice from a financial planner. If you are a National Seniors of Australia member, you can access the Financial Information Consultant.

Smartraveller recommends you consider: 

• How you’ll support yourself financially. This includes having contingency funds if something goes wrong.
• How you’ll manage superannuation and pension payments. Transferring super to another country may incur tax penalties that don’t apply in Australia.
• The broader tax implications.
• Where and how you’ll do your banking. Some countries have very different systems and types of accounts than in Australia.  
• The potential impact of changes in exchange rates if you are moving money between countries.

If you live overseas, you may still be eligible for an Australian Age Pension, but it may be less than you receive at home. Check with Services Australia here.

Establishing the availability, accessibility, standard, and cost of healthcare at your destination should be one of your top priorities.

Unless you are fluent in the local language, make sure you can find health facilities where English is spoken at a high level.

Although Australia has reciprocal healthcare agreements with some countries, neither Medicare nor Australian private health insurers will cover you if you get sick or are injured overseas.

While travel insurance will cover you as a tourist, you will either need specific health insurance, or be prepared to pay for treatment, if you decide to live in a foreign country.

You should also make sure the medication you are taking is legal and available where you’re retiring. You might be surprised which drugs are illegal or prescription-only – and which ones are freely available – in other countries.

Consider that you may have to pay for medical repatriation in the event of a serious illness or if you want specialist or palliative care in Australia.

If you remain an Australian resident, you can access Medicare for treatment while you are in Australia up to five years after you move overseas. 

After five years, you won’t be able to access Medicare unless you move back to Australia to live, when you’ll need to re-enroll. 

Be especially wary if you move overseas to live with someone you’ve only met online.

Make sure you are aware of your legal rights. Get independent local advice before you make big financial commitments, particularly when purchasing property. You may find that despite paying for the property, it does not belong to you.

ScamWatch has some advice on the issue of romance scams.

If you have any problems living overseas, you may be able to seek assistance from an Australian embassy or consulate. But there are limits to the help they can give.

Make sure you know what the Australian Government can’t do for you while you are overseas by visiting Smartraveller.

There are many things to consider if you plan to live overseas. Make Smartraveller your first destination.