The pros and cons of retiring overseas
19 February 2019
Did you know there are around one million Australians living overseas? And a growing proportion of retirees are also taking the plunge, according to the Department of Foreign Affairs and Trade.
But what are the realities of life abroad in the post-employment stage of life? We bring to light some pros and cons.
The cost of living may be cheaper
Relocating overseas may mean you could take advantage of reduced living costs. For example, the Australian dollar goes a lot further in many other countries, meaning you might be able to bring to life certain retirement dreams not necessarily achievable in Australia.
The cost of housing in some other countries may also be more within reach, especially if you currently live in our major capital cities.
You might be wondering if your super is easily accessible when living outside of Australia, so here’s some good news: you can access your super, and even the Age Pension, basically anywhere in the world.
However, there are a few additional rules when it comes to the latter, and you should be aware of how exchange rates may affect your retirement income.
That’s why it’s important to seek professional advice before you make any decision that affects your finances or your pension.
Our LGS financial planners can help. Request an appointment online, or call 1300 547 873.
You could live healthier
Your lifestyle clearly has a significant bearing on your health. By choosing to retire somewhere that you have more disposable income, you give yourself the opportunity to take part in activities that might have come at a premium in Australia, for example sports clubs or health retreats.
Diet and climate also impact your wellbeing, so it’s worth researching what different countries offer in these respects to keep you healthier and feeling better for longer.
One of the most important considerations for anyone debating retiring overseas is healthcare access.
Not every country has the same standards of medicine or care, and as most people require increasing assistance as they progress through retirement, you need to be confident you can get the treatment you need.
Researching the costs of accessing healthcare is also important. While some countries have cheap, or even free, public healthcare, many don’t. Having comprehensive health insurance is, therefore, vital.
Distance from family
While you may take advantage of cheaper living costs, you need to weigh this against the costs and increased effort of having to return to Australia to see loved ones. The fun and excitement of experiencing life abroad also comes at the expense of losing the immediate support of loves ones.
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