Retirement Planning & Experiences

[Quickstatus]

If a person departs permanently overseas prior to age pension age they must recommence residency in Australia for the two years mentioned by @serfty
The below information is from the Social Security Guide 7.1.6 Portability for former Australian residents

What happens if they are a resident at old age pension age, the commence collecting the age pension, then relocate overseas?

 

[mrsterryn]

What happens if they are a resident at old age pension age, the commence collecting the age pension, then relocate overseas?

Then they have planned their retirement well lol .
The 35 years rule does kick and their payment is pro rata out. What does happen though for some is their previous ppor becomes an asset and may cancel their payment .

 

[CaptJCool]

The inbound age pension rate remains low (around 1/3)

 

[mrsterryn]

The inbound age pension rate remains low (around 1/3)

As in population to claiming ?

Interesting the low amount under 70. I wonder if the partner's employment income and their own preclude payment

 

[Quickstatus]

Then they have planned their retirement well lol .

The only issue is then Medicare. Eligible so long as card is expiry date valid.
Just need to return to AU within 5 years to ensure new Medicare card is issued, otherwise there is a bit of rigmarole to go through if out of AU > 5 years.

 

[mrsterryn]

The only issue is then Medicare. Eligible so long as card is expiry date valid.
Just need to return to AU within 5 years to ensure new Medicare card is issued, otherwise there is a bit of rigmarole to go through if out of AU > 5 years.

I wonder how that would go for people who use the reciprocal agreements under Medicare

 

[Quickstatus]

I wonder how that would go for people who use the reciprocal agreements under Medicare

You need both a passport and an expiry-date valid Medicare card and ask to be treated under the "Reciprocal health Care agreement with Australia"

 

[mrsterryn]

You need both a passport and an expiry-date valid Medicare card and ask to be treated under the "Reciprocal health Care agreement with Australia"

So if the Medicare had expired after a year , it would no longer be applicable? I had never ever consider the Medicare expiring for overseas absence. Quite aware of reciprocal for holidays

 

[Quickstatus]

I had never ever consider the Medicare expiring for overseas absence.

An expired medicare care cannot be used to claim Reciprocal health care.

So if the Medicare had expired after a year , it would no longer be applicable?

My understanding is that if Medicare Card expires while overseas BUT if overseas stay is less than 5 years, the card can be renewed as per usual processes on return to Australia. I assume a new card will be posted in any case to your Australian address if you have not been overseas for more than 5 years as per normal arrangements.

So potentially (speculating) if the medicare card expires 4 years and 11 months into overseas stay, then the new Medicare card will be posted and someone can mail it to you overseas . Potentially you could stay overseas for a further 5 years until that new card expires (medicare card validity is 5 years). But presumably the system will eventually catch up.... But I would not recommend anyone rely on this....

 

[Jacques Vert]

Of course, there is also a residency test on your self-managed superfund .

 

[Quickstatus]

Of course, there is also a residency test on your self-managed superfund .

But not an issue with retail or industry super funds

.......
Retiring and living overseas with super/pension is quite attractive for many people especially when the AUD goes further in many parts of the world.
There are of course ATO rules for tax residency. If deemed by the ATO to be a tax resident in AU, then domestic and foreign income are required to be declared, but income tax is eligible for tax free threshold and medicare levy is charged according to normal rules

Non tax residents of Australia have to only declare Australian income but the income is not eligible for tax free threshold, but Medicare levy is not charged.

 

[CaptJCool]

As in population to claiming ?

Interesting the low amount under 70. I wonder if the partner's employment income and their own preclude payment

Yes

There’s that part of it as in younger working partners income
Plus your own assets
Bear in mind by 60 many have inherited from the deceased parents
Plus surviving spouses now got twice the assets with a lower asset threshold which removes them from the age pension
And the vast majority of 60yo have been in the superannuation system for over 30 years

 

[JohnK]

Sounds like you have done some sums/budgeting and have some buffer.. Though is that realistic?. I'm not saying it is not, but I always caution that budgets should be realistic and not bare bones..

Also consider that at some stage OAP will kick in. I don't know how that works for expats living OS.

I can't get the aged pension although don't want to either. Ive still managed to hang on investment properties plus the super pension will be fine.

Sounds like you may be planning to retire in Thailand and therefore becoming tax resident there. You need to ascertain as to how Thai authorities will view your Australian private pension. Although it is tax-exempt if paid to you as a tax resident in Australia, in Thailand it may be viewed as taxable.

Disclaimer; This is not tax advice.

Tax in Thailand is minimal plus I can get spouse visa. Note we are sending money to Thailand now. Plan is 11,000,000 savings but could be 16,000,000 if we have time.

I would not give up residency in Australia. We will only retire to Thailand if health becomes bad enough that we can no longer travel.

I did a lot of silly things in life throwing away money but now comes the time to plan seriously. Even if I can't work until 70 years old the money is there now and Im only planning to taking out a relatively small amount via TTR. Wish me luck.

 

[Quickstatus]

Bear in mind by 60 many have inherited from the deceased parents

Unless the family has history of 90-100 year olds like mine

 

[Quickstatus]

I can't get the aged pension although don't want to either.

But if eligible some time down the track, you should exercise that entitlement. There is no shame is claiming the OAP.

 

[hydrabyss]

Apologies for dragging up an old thread but have found it interesting to read as I am currently at a cross roads on which way to go.
I have the option to keep working for average income or stop work and receive a pension that is not means tested but limited to what can be done to earn extra income if I take it.
Problem is at 53 I like to keep busy so may find it hard letting go although I did leave fulltime employment working for someone else 10 years ago so am used to being self motivated.
For those that retired early how did you find it and has anyone gone back to work after a few years even if part time.
From a financial point I am lucky I never invested much into super so I can access what I have today its just working out how much you will need each year. I have used chatgpt to work out what income would be possible while still allowing the assets to increase in value and as I am only 53 I will still being paying tax. They say a comfortable retirement can be had on 80k a year but my concern is when your not working theres more time to spend money.

 

[kookaburra75]

Apologies for dragging up an old thread but have found it interesting to read as I am currently at a cross roads on which way to go.
I have the option to keep working for average income or stop work and receive a pension that is not means tested but limited to what can be done to earn extra income if I take it.
Problem is at 53 I like to keep busy so may find it hard letting go although I did leave fulltime employment working for someone else 10 years ago so am used to being self motivated.
For those that retired early how did you find it and has anyone gone back to work after a few years even if part time.
From a financial point I am lucky I never invested much into super so I can access what I have today its just working out how much you will need each year. I have used chatgpt to work out what income would be possible while still allowing the assets to increase in value and as I am only 53 I will still being paying tax. They say a comfortable retirement can be had on 80k a year but my concern is when your not working theres more time to spend money.

I'm in my mid 60s and moving to retirement now, and went through the same types of questions etc 10 years ago. And the usual disclaimer, I'm not in the financial game, get your own advice etc.

The best advice I can give though, is find a good financial advisor who understands all of the rules around income and capital gains tax, accessing super for retirement etc, and how much a year you need - do you know now how much you're spending now, broken into the different categories? For example, as you get older, medcial bills can be bigger.

It sounds like you might have a government type scheme behind you and there are a lot of rules, obvious and hidden, around them. Ask around for recommendations for an advisor, meet them and check them out to see how knowledgeable they are around the rules of your particular scheme, what options they can provide, preferably not locked to a single product or brand. If you decide to proceed with them and get the full advice, it will probably cost you $5,000-10,000, but it's worth it.

 

[Happy Dude]

Interesting @JohnK that you plan to hold IPs in retirement. I think it's relative to the value of the IP at retirement, but I plan to (strategically) sell and dump the proceeds into a pension fund as the annual effort/costs of the IP and low-ish rent can't compete with a chunk of cash earning 7% or so tax free. Not particularly attached to the IP which is nothing special.

 

[CaptJCool]

Apologies for dragging up an old thread but have found it interesting to read as I am currently at a cross roads on which way to go.
I have the option to keep working for average income or stop work and receive a pension that is not means tested but limited to what can be done to earn extra income if I take it.
Problem is at 53 I like to keep busy so may find it hard letting go although I did leave fulltime employment working for someone else 10 years ago so am used to being self motivated.
For those that retired early how did you find it and has anyone gone back to work after a few years even if part time.
From a financial point I am lucky I never invested much into super so I can access what I have today its just working out how much you will need each year. I have used chatgpt to work out what income would be possible while still allowing the assets to increase in value and as I am only 53 I will still being paying tax. They say a comfortable retirement can be had on 80k a year but my concern is when your not working theres more time to spend money.

For a single yeah $80k
$6.5k per month
Without a home loan nor rent that’s feasible. Without a car even better

$10k per month is hard to spend

As for finishing up in your early 50s, see my listing above. There’s rarely a dull day doing the rounds of morning coffees. In the absence of friends, AFR or Australian

There’s strata or sporting committees.
There’s zany sports like. Cliff diving or artistic cycling (gymnastics on a bike)
There’s Travelling including AFF events - there’s free local transport after 60
There’s poetry groups, there’s lunch on the lawns or concert bands to follow. And help support
There’s Fringe events and hobbies
There’s household stuff to be done - model train tracks to assemble
There’s a new wardrobe

There’s a later in life partner
There’s dining out and coughtails
Gosh there’s even cruising
There’s walks like the Camino or Berlin Wall
There’s social media or books to read, there’s learning and growth

 

[cove]

When I was a CPA I saw folks retiring with a nest egg of less than $200,000 in the nineteen seventies with no debt and a home with no mortgage.
They were caught out badly by the changes in the cost of living if they lived 30 years or more past retirement.
Now in 2026 inflation is worse so you really need to think about your future if you retire young.
Right now many retirees are going back into the work force to bolster their finances.