Q&A: Retiring overseas

Thinking about retiring abroad? We asked Member Services Consultant Angelo Lombardo to outline the financial impacts and key considerations of retirement planning for a move overseas.

By Angelo Lombardo - 3 min read

A little about Angelo

As a Member Solutions Consultant at Russell Investments, Angelo Lombardo understands all the ins and outs of super and retirement legislation, and loves to answer questions and help members.

Have you ever dreamed of retiring to Bali, Thailand, or the south of France? Moving internationally may be an appealing choice for retirement, but it can have a significant impact on your finances. Here, retirement planning expert, Adam Krull, shares his insights into what people approaching retirement should consider if they plan to make a move overseas after work. 

Q: I want to retire to another country. How can I take my Australian superannuation with me?  

A: One option is to see whether there is a reciprocal arrangement between Australia and the country you want to move to that would allow you to transfer your superannuation money into an equivalent overseas fund, such as a New Zealand KiwiSaver. However, those arrangements are uncommon.  

Another option is that after you’ve met a condition of release to access your superannuation–such as retiring after reaching preservation age–you can move money into a superannuation pension account, then have regular payments made into your Australian bank account before transferring the money to your bank account overseas.  

Q: Are there other financial impacts I need to be aware of?  

A: The impact will depend on which country you are moving to and your own personal situation, because the rules vary from place to place. In Australia, payments you receive from your superannuation pension are tax free, but different countries have different rules about how money coming into their country needs to be declared. Other countries may also apply tax to those payments.  

Q: Would a move overseas affect my government Age Pension?  

A: To qualify for the government Age Pension, you need to be living in Australia, physically in Australia, and be an Australian resident on the day you claim. If you move overseas–or even travel overseas for more than six weeks at a time–it can affect your government Age Pension. Also consider whether a move overseas could impact your eligibility for other government entitlements, such as concession and health cards, rent assistance, carer payments, and other subsidised services. You should contact Services Australia for more information. 

Q: What other factors should I consider if I’m still deciding whether to live in Australia or overseas when I retire?  

A: If you’re planning to move away from family and friends–whether overseas or even within Australia–bear in mind that it can take time to establish new networks and feel at home in a new place.  

Another factor to consider is if you’re planning to sell up and move somewhere cheaper, it may be difficult to afford to get back into the Australian market if you want to return later for family or health reasons, for example. 

Before you make a big move, consider renting for six or 12 months in the area you’re thinking of moving to so you can get a good feel for the place before you commit. Sometimes a holiday destination is just that, and not a place you’d want to live for a long time.  

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