Super, Siestas & Surprises: The Real Costs of Retiring Overseas
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A growing number of Australian seniors are flirting with the idea of trading in the familiar suburban life for a slice of paradise overseas. For many, the notion of retiring abroad conjures up images of “sun-drenched beaches, lush landscapes, and a life of leisure that doesn’t break the bank”.
Even before the pandemic, the ranks of Aussies choosing to spend their golden years abroad were rising – up 47% in the decade prior to COVID-19. Now, with international travel back on the cards, that trend is expected to pick up steam again. But is it really all palm trees and piña coladas? Or could that dream retirement in a foreign land come with hidden downsides?
Ask anyone fantasising about an overseas retirement what draws them, and the answers come easily: cheaper living, better weather, adventure, maybe even reconnecting with family overseas. Popular retiree destinations span the globe – New Zealand, Italy, Greece, and Spain top the list for Australian pensioners moving abroad, along with hotspots in Asia like Malaysia and Thailand. Some even venture further afield to places like Portugal or Panama, chasing specific perks like tax incentives or a low-cost tropical lifestyle.
Lower cost of living is perhaps the biggest carrot. After decades in a country where prices seem only to go up, many retirees are lured by the idea that their dollars will stretch further elsewhere. And it’s not just a fantasy – in many countries a frugal but comfortable life really does cost a fraction of what it does in Sydney or Melbourne.
“Countries including Thailand, Portugal, and Malaysia provide affordable housing, healthcare, and daily expenses, allowing retirees to stretch their superannuation further”. For example, Aussie expat Michael Cullen and his wife found that after buying a home in Thailand for around A$140,000, their day-to-day expenses were 70% lower than back in Australia.
Likewise, another Australian couple, Michael and Barbara, reported that renting a house in the Philippines for A$250 a week – with a full-time cook and cleaner for just A$300 a month – meant their overheads were so low they could afford to retire years earlier than they’d planned. Stories like these abound, and retirees aren’t shy about sharing them; as one observer quipped, the only thing grey nomads love more than bragging about their savings is posting photos of the pool in their new villa abroad.
Climate and lifestyle rank a close second among reasons to go. Why spend retirement in a chilly Australian winter or coping with the hustle of city life if you could enjoy year-round warmth and a laid-back pace? Dreamy locales such as Bali, Spain, or Mexico offer exactly that – balmy climates and an easygoing atmosphere that many consider “perfect for retirement”.
Instead of mowing the lawn at home, you could be sipping coffee under a Mediterranean sun or taking an evening stroll on a Thai beach. It’s no surprise that destinations like Bali and Thailand – long beloved by Aussie holidaymakers – have thriving expatriate retiree communities.
In places like Chiang Mai in northern Thailand, you’ll even find a lawn bowls club where Australian, British and Canadian retirees meet weekly under the tropical sky. The appeal of an “endless holiday” lifestyle is a powerful draw. As one Australian retiree living in Bali describes, “Every day there is the thrill of learning something new” – from local religious festivals to discovering hidden village traditions – and “the warmth and willingness of the local people to embrace foreigners is refreshing and heart-warming”. In short, many find that life overseas can offer a daily sense of adventure and cultural enrichment that simply wasn’t available in their old routine back home.
For others, retiring abroad is about family or personal ties. Some Australian seniors move overseas to be closer to adult children or grandchildren who have settled in another country. If your son or daughter has built a life in London or Auckland, for instance, spending your retirement years nearby – rather than relying on occasional visits or Zoom calls from half a world away – might be a compelling reason to relocate. In those cases, the “paradise” is less about palm trees and more about precious time with loved ones.
There are even potential financial perks beyond just cheaper groceries. Certain countries actively court foreign retirees with tax breaks or special visas. Portugal, for example, has a well-known Non-Habitual Residency scheme that offers favourable tax treatment for overseas pensioners.
In Malaysia, the “MM2H” (Malaysia My Second Home) program provides a long-term residency visa for retirees alongside access to a high-quality (and low-cost) healthcare system. And speaking of healthcare, many popular retiree destinations boast medical services that are both excellent and affordable.
Thailand’s private hospitals are world-class and far cheaper than Australia’s; Malaysia has one of the best healthcare systems in the region, with low costs for expats and locals alike. In fact, some Australian retirees take advantage of this by getting elective medical procedures done overseas or joining wellness programs that would be unaffordable back home.
Source: 7NEWS Australia / YouTube
With such enticing advantages – a bigger bang for your buck, sunny weather, rich culture, and maybe even being closer to family – it’s easy to understand why the overseas retirement dream is so alluring. It’s as if the world becomes a buffet of possibilities: you could while away your days exploring art in a Tuscan village, or make new friends at a beachside bar in Phuket, or volunteer in a local community in Penang. Retirement, after all, is “a time to relax and enjoy the fruits of your labour,” and for some Australians that means doing it in a whole new environment.
But before you start packing your bags and selling the house, it’s worth remembering that every rose has its thorns. Uprooting your life to another country – especially in your 60s or 70s – isn’t all smooth sailing. As the saying goes, wherever you go, you take yourself with you. The next section looks at the less glamorous side of retiring abroad, because an informed decision means weighing both the pros and the cons.
So, what can rain on this paradise parade? In a word: reality. “As with many things, the dream doesn’t always match the reality,” admits Sherry Bronson, an Australian who retired to Bali. For all its perks, retiring overseas comes with a fair share of challenges – some predictable, others that catch people by surprise.
Bureaucracy is often the first hurdle. Every country has its own visa and residency rules for foreign retirees, and they can be bewildering. Unlike moving interstate in Australia, moving overseas means jumping through legal hoops to secure the right to live there. Some nations want proof of substantial savings or income, others impose age limits or health insurance requirements. Navigating paperwork can become a part-time job in itself.
Take Bali, for example. Indonesia requires Australians to be at least 60 years old to qualify for a retirement visa there, and you must prove an income of at least USD $1,500 per month, carry Indonesian health insurance, and renew the visa annually. Thailand offers retirement visas too, but they must be renewed periodically and often require periodic proof of funds in a local bank.
Even supposedly “easy” destinations like southern Europe involve residency permits and dealing with foreign bureaucracies (often in another language). All of this can be complex and costly. It’s manageable – thousands have done it – but it requires patience and diligence. One financial planner who works with Aussie expats warns that it’s dangerous to just wake up one day and move abroad on a whim; careful planning and research are a must.
Then there’s the issue of healthcare. This is a make-or-break consideration for seniors, and rightly so. Back home in Australia, you have Medicare and a familiar health system. Overseas, it’s a very different story. Some countries do have excellent healthcare (in fact, places like Thailand and Malaysia pride themselves on their hospitals and medical tourism), but access can be inconsistent and usually you’ll be footing the bill via private insurance. Your trusty Medicare card won’t help you in a Thai or Spanish clinic. And while an annual travel insurance policy might have been sufficient in your 40s or 50s, retirees living abroad typically need comprehensive international health cover – which gets more expensive as you age.
Shane McNally, an adviser at Exfin, recalls getting a quote of over US$50,000 per person per year for a couple in their 80s living in Indonesia. Yes, you read that right – more than fifty grand each, annually, for top-tier health insurance including evacuation coverage. Not everyone will face a premium that steep (costs depend on age and coverage), but the point is that health insurance quickly becomes a significant budget item when you’re in your 70s and 80s overseas.
McNally’s blunt advice: “unless you can afford quality health cover, you shouldn’t leave Australia”. That might sound harsh, but it underscores the reality that an idyllic beachfront bungalow won’t count for much if you can’t get appropriate medical care when you need it.
Related to healthcare is the question of ageing and support. It’s one thing to be a healthy 65-year-old exploring temples in Cambodia; it’s another if you’re an 85-year-old in a country where aged care facilities are scarce or don’t speak your language. Some Australian retirees plan for this by splitting their time – enjoying the expat life in their go-go years and returning home if and when their health declines. But not everyone anticipates how quickly circumstances can change. If you do fall ill abroad, will you have family or friends around to help? Or will you need to fly back to Australia (which assumes you’re fit to fly)? These are tough questions, but important ones.
Perhaps the most emotionally difficult drawback of retiring far from home is the distance from family and friends. Ask any expat retiree what they miss, and loved ones top the list. Modern technology – video calls, WhatsApp chats – makes it easier to stay in touch, but it’s no substitute for being there in person. Grandchildren grow up fast, and you might be a guest star in their life story rather than a regular if you live on the other side of the world.
“That is the one downside for me,” admits Bronson about her otherwise charmed life in Bali, referring to the ache of being away from her new grandkids. She flies back to Australia once or twice a year to see family, but inevitably misses birthdays, babysitting opportunities, and the day-to-day moments many grandparents cherish. Emergencies are another concern – a long-distance call is a poor replacement for being able to rush to a loved one’s side, or vice versa.
The National Seniors Australia organisation frankly states that being away from family is “one of the biggest drawbacks” of an overseas retirement. It’s a trade-off each person has to weigh: are the beaches and low prices worth the loneliness you might feel when you can’t regularly have Sunday lunch with old friends or see your grandchildren’s school plays?
Money matters can throw cold water on the retirement-abroad dream as well. Yes, everyday costs might be lower, but financial complexity can creep in. For one, moving overseas can affect your Australian government benefits. The Age Pension, for instance, is not fully exportable without conditions. Australia has agreements with some countries (like New Zealand and certain EU nations) so that pensions can be paid reciprocally, but if you move to a country without such an agreement – or even just stay overseas more than 26 weeks – you could see your payments reduced or stopped entirely.
Even with an agreement, once you’ve been abroad for more than six months, you’ll generally lose supplements and could have your pension rate adjusted based on how long you lived in Australia during your working life. In short, unless you’re a self-funded retiree, you’ll need to investigate how Centrelink will treat you after a move.
Taxation is another thorny issue. Some retirees assume that if their superannuation income is tax-free in Australia, it will be tax-free wherever they go – but that’s not the case. “People don’t realise that if they retire to France or Italy and become tax residents, suddenly that superannuation income stream can become taxable,” McNally warns. Wealthier countries often tax foreign pension income, which can throw a wrench in your financial plans. Meanwhile, countries like Thailand, Indonesia, and the Philippines are noted for not taxing foreign-source retirement income under their retirement visa programs – a bonus for Aussie expats there.
The flip side is that those countries might expect you not to work or earn locally, and you must maintain certain bank balances. And let’s not forget currency fluctuations: if your income is in Australian dollars but your expenses are in Thai baht or Mexican pesos, exchange rates can make your budget unexpectedly tight. A swing in the Aussie dollar’s value can turn your “cheap” retirement suddenly pricey (or vice versa). Basically, retirement abroad adds a layer of financial risk that staying in Australia wouldn’t involve.
Finally, life in a foreign country can come with a litany of everyday challenges that are easy to overlook during those dreamy vacation planning sessions. The little inconveniences that were quirky on a two-week holiday might become infuriating when you live with them year-round. Maybe it’s the unreliable electricity, the language barrier at the local market, or the fact that you can’t buy your favourite cereal anywhere in town.
Sherry Bronson found Bali’s long wet season a real test of her patience, and those idyllic tropical thunderstorms became less romantic when paired with constant earth tremors and the occasional volcanic ash cloud. Some newcomers struggle with local bureaucracy – something as simple as getting a driver’s licence or opening a bank account can turn into a marathon of forms and fees in a foreign land.
Source: A Current Affair / YouTube
There might also be cultural norms to adjust to; what’s polite or normal in Australia might be interpreted very differently somewhere else. And while most retirees report positive relationships with locals, feeling like an outsider in a community is a possibility one should be mentally prepared for.
In some places, political instability or safety concerns are part of the landscape – for example, Thailand has had its share of political upheaval, and parts of Latin America have higher crime rates than most of Australia. None of this is to say “don’t do it” – only to highlight that rose-coloured glasses can slip off quickly if you haven’t done your homework. “Those who haven’t done their homework can become quickly disillusioned. After a few years, the novelty wears off and they move on,” Bronson observes of some expats who ultimately gave up and went home. In other words, the expat life is not for everyone, and there’s no shame in trying it and deciding you prefer the great Australian backyard and a meat pie to a beachfront condo and pad thai (or vice versa).
Retiring abroad can be an enriching, even life-changing adventure – or it can be a costly mistake. Most likely, it’s a bit of both. The key is going in with eyes open. The experts and seasoned expats all echo the same advice: plan, plan, plan. If the idea of moving overseas in retirement is tugging at you, start by doing thorough research and soul-searching.
Take extended trips to your desired destination, not just a whirlwind holiday. Live like a local for a few months if you can – rent an apartment, shop at the markets, test out the healthcare, experience the weather off-season. These trial runs can confirm whether you’re truly comfortable there long-term. Talk to other expats on the ground; ask the hard questions about what they wish they knew before moving. On the financial side, consult a financial adviser about tax implications, and check with Centrelink (or Services Australia) about your pension portability – before you make any decisions. Ensure you can afford health insurance overseas, and have an emergency fund for trips home or unexpected costs.
It’s also wise to have a Plan B. Some retirees keep a property in Australia or maintain the option to come back if needed. This can be a safety net if health or family circumstances change, or even just a mental comfort knowing you haven’t burned all bridges. The flip side is that maintaining a home in Australia while living abroad can be expensive, so it’s a personal call. At minimum, make sure someone back home can assist you with any loose ends (like managing any Australian bills, checking your mail, or helping if you need to return on short notice).
Ultimately, whether retiring overseas is “worth it” comes down to personal priorities. Some people thrive in the novelty and challenges of a foreign environment – they love learning new languages, making international friends, and stretching their comfort zones in exchange for a rich life experience.
Others realise they value familiarity, stability, and proximity to family more than they thought. Neither choice is wrong. In fact, one beautiful aspect of retirement today is that it’s more flexible than it used to be; you aren’t necessarily locked into one place. You might spend a few years abroad and then come back, or split your time between two homes.
As National Seniors Australia notes, retiring overseas “can be an exciting and financially smart decision, but it requires careful planning”. The best thing you can do is weigh all the pros and cons – the sunny upsides and the potential downsides we’ve discussed – in the context of your own life. Crunch the numbers, talk it through with family, and maybe give it a test run. You’ve worked hard for your retirement, so you want to get it right.
So, paradise or pitfall? It might be a little of both. The good news is that you’re in the driver’s seat – you can take the leap, or not, or even change your mind later.
To wrap up, let’s leave it with a question for you, dear reader: Would you trade the comforts of home for an adventure in a foreign land during your retirement? Perhaps you’ve already taken the plunge or know someone who has. What’s your take – is the overseas retirement dream all it’s cracked up to be, or would you rather keep your roots firmly in Aussie soil?
READ MORE: From $2,000 to $0: Aussie Slashes Energy Costs with Massive Rebate
Even before the pandemic, the ranks of Aussies choosing to spend their golden years abroad were rising – up 47% in the decade prior to COVID-19. Now, with international travel back on the cards, that trend is expected to pick up steam again. But is it really all palm trees and piña coladas? Or could that dream retirement in a foreign land come with hidden downsides?
Living the Dream: Why Retiring Overseas Tempts Many Aussies
Ask anyone fantasising about an overseas retirement what draws them, and the answers come easily: cheaper living, better weather, adventure, maybe even reconnecting with family overseas. Popular retiree destinations span the globe – New Zealand, Italy, Greece, and Spain top the list for Australian pensioners moving abroad, along with hotspots in Asia like Malaysia and Thailand. Some even venture further afield to places like Portugal or Panama, chasing specific perks like tax incentives or a low-cost tropical lifestyle.
Lower cost of living is perhaps the biggest carrot. After decades in a country where prices seem only to go up, many retirees are lured by the idea that their dollars will stretch further elsewhere. And it’s not just a fantasy – in many countries a frugal but comfortable life really does cost a fraction of what it does in Sydney or Melbourne.
“Countries including Thailand, Portugal, and Malaysia provide affordable housing, healthcare, and daily expenses, allowing retirees to stretch their superannuation further”. For example, Aussie expat Michael Cullen and his wife found that after buying a home in Thailand for around A$140,000, their day-to-day expenses were 70% lower than back in Australia.
Source: Seniors Discount Club
Likewise, another Australian couple, Michael and Barbara, reported that renting a house in the Philippines for A$250 a week – with a full-time cook and cleaner for just A$300 a month – meant their overheads were so low they could afford to retire years earlier than they’d planned. Stories like these abound, and retirees aren’t shy about sharing them; as one observer quipped, the only thing grey nomads love more than bragging about their savings is posting photos of the pool in their new villa abroad.
Climate and lifestyle rank a close second among reasons to go. Why spend retirement in a chilly Australian winter or coping with the hustle of city life if you could enjoy year-round warmth and a laid-back pace? Dreamy locales such as Bali, Spain, or Mexico offer exactly that – balmy climates and an easygoing atmosphere that many consider “perfect for retirement”.
Instead of mowing the lawn at home, you could be sipping coffee under a Mediterranean sun or taking an evening stroll on a Thai beach. It’s no surprise that destinations like Bali and Thailand – long beloved by Aussie holidaymakers – have thriving expatriate retiree communities.
In places like Chiang Mai in northern Thailand, you’ll even find a lawn bowls club where Australian, British and Canadian retirees meet weekly under the tropical sky. The appeal of an “endless holiday” lifestyle is a powerful draw. As one Australian retiree living in Bali describes, “Every day there is the thrill of learning something new” – from local religious festivals to discovering hidden village traditions – and “the warmth and willingness of the local people to embrace foreigners is refreshing and heart-warming”. In short, many find that life overseas can offer a daily sense of adventure and cultural enrichment that simply wasn’t available in their old routine back home.
For others, retiring abroad is about family or personal ties. Some Australian seniors move overseas to be closer to adult children or grandchildren who have settled in another country. If your son or daughter has built a life in London or Auckland, for instance, spending your retirement years nearby – rather than relying on occasional visits or Zoom calls from half a world away – might be a compelling reason to relocate. In those cases, the “paradise” is less about palm trees and more about precious time with loved ones.
There are even potential financial perks beyond just cheaper groceries. Certain countries actively court foreign retirees with tax breaks or special visas. Portugal, for example, has a well-known Non-Habitual Residency scheme that offers favourable tax treatment for overseas pensioners.
In Malaysia, the “MM2H” (Malaysia My Second Home) program provides a long-term residency visa for retirees alongside access to a high-quality (and low-cost) healthcare system. And speaking of healthcare, many popular retiree destinations boast medical services that are both excellent and affordable.
Thailand’s private hospitals are world-class and far cheaper than Australia’s; Malaysia has one of the best healthcare systems in the region, with low costs for expats and locals alike. In fact, some Australian retirees take advantage of this by getting elective medical procedures done overseas or joining wellness programs that would be unaffordable back home.
Source: 7NEWS Australia / YouTube
With such enticing advantages – a bigger bang for your buck, sunny weather, rich culture, and maybe even being closer to family – it’s easy to understand why the overseas retirement dream is so alluring. It’s as if the world becomes a buffet of possibilities: you could while away your days exploring art in a Tuscan village, or make new friends at a beachside bar in Phuket, or volunteer in a local community in Penang. Retirement, after all, is “a time to relax and enjoy the fruits of your labour,” and for some Australians that means doing it in a whole new environment.
But before you start packing your bags and selling the house, it’s worth remembering that every rose has its thorns. Uprooting your life to another country – especially in your 60s or 70s – isn’t all smooth sailing. As the saying goes, wherever you go, you take yourself with you. The next section looks at the less glamorous side of retiring abroad, because an informed decision means weighing both the pros and the cons.
The Catch: Challenges of a Life Abroad
So, what can rain on this paradise parade? In a word: reality. “As with many things, the dream doesn’t always match the reality,” admits Sherry Bronson, an Australian who retired to Bali. For all its perks, retiring overseas comes with a fair share of challenges – some predictable, others that catch people by surprise.
Bureaucracy is often the first hurdle. Every country has its own visa and residency rules for foreign retirees, and they can be bewildering. Unlike moving interstate in Australia, moving overseas means jumping through legal hoops to secure the right to live there. Some nations want proof of substantial savings or income, others impose age limits or health insurance requirements. Navigating paperwork can become a part-time job in itself.
Take Bali, for example. Indonesia requires Australians to be at least 60 years old to qualify for a retirement visa there, and you must prove an income of at least USD $1,500 per month, carry Indonesian health insurance, and renew the visa annually. Thailand offers retirement visas too, but they must be renewed periodically and often require periodic proof of funds in a local bank.
Even supposedly “easy” destinations like southern Europe involve residency permits and dealing with foreign bureaucracies (often in another language). All of this can be complex and costly. It’s manageable – thousands have done it – but it requires patience and diligence. One financial planner who works with Aussie expats warns that it’s dangerous to just wake up one day and move abroad on a whim; careful planning and research are a must.
Then there’s the issue of healthcare. This is a make-or-break consideration for seniors, and rightly so. Back home in Australia, you have Medicare and a familiar health system. Overseas, it’s a very different story. Some countries do have excellent healthcare (in fact, places like Thailand and Malaysia pride themselves on their hospitals and medical tourism), but access can be inconsistent and usually you’ll be footing the bill via private insurance. Your trusty Medicare card won’t help you in a Thai or Spanish clinic. And while an annual travel insurance policy might have been sufficient in your 40s or 50s, retirees living abroad typically need comprehensive international health cover – which gets more expensive as you age.
Shane McNally, an adviser at Exfin, recalls getting a quote of over US$50,000 per person per year for a couple in their 80s living in Indonesia. Yes, you read that right – more than fifty grand each, annually, for top-tier health insurance including evacuation coverage. Not everyone will face a premium that steep (costs depend on age and coverage), but the point is that health insurance quickly becomes a significant budget item when you’re in your 70s and 80s overseas.
McNally’s blunt advice: “unless you can afford quality health cover, you shouldn’t leave Australia”. That might sound harsh, but it underscores the reality that an idyllic beachfront bungalow won’t count for much if you can’t get appropriate medical care when you need it.
Related to healthcare is the question of ageing and support. It’s one thing to be a healthy 65-year-old exploring temples in Cambodia; it’s another if you’re an 85-year-old in a country where aged care facilities are scarce or don’t speak your language. Some Australian retirees plan for this by splitting their time – enjoying the expat life in their go-go years and returning home if and when their health declines. But not everyone anticipates how quickly circumstances can change. If you do fall ill abroad, will you have family or friends around to help? Or will you need to fly back to Australia (which assumes you’re fit to fly)? These are tough questions, but important ones.
Perhaps the most emotionally difficult drawback of retiring far from home is the distance from family and friends. Ask any expat retiree what they miss, and loved ones top the list. Modern technology – video calls, WhatsApp chats – makes it easier to stay in touch, but it’s no substitute for being there in person. Grandchildren grow up fast, and you might be a guest star in their life story rather than a regular if you live on the other side of the world.
“That is the one downside for me,” admits Bronson about her otherwise charmed life in Bali, referring to the ache of being away from her new grandkids. She flies back to Australia once or twice a year to see family, but inevitably misses birthdays, babysitting opportunities, and the day-to-day moments many grandparents cherish. Emergencies are another concern – a long-distance call is a poor replacement for being able to rush to a loved one’s side, or vice versa.
The National Seniors Australia organisation frankly states that being away from family is “one of the biggest drawbacks” of an overseas retirement. It’s a trade-off each person has to weigh: are the beaches and low prices worth the loneliness you might feel when you can’t regularly have Sunday lunch with old friends or see your grandchildren’s school plays?
Money matters can throw cold water on the retirement-abroad dream as well. Yes, everyday costs might be lower, but financial complexity can creep in. For one, moving overseas can affect your Australian government benefits. The Age Pension, for instance, is not fully exportable without conditions. Australia has agreements with some countries (like New Zealand and certain EU nations) so that pensions can be paid reciprocally, but if you move to a country without such an agreement – or even just stay overseas more than 26 weeks – you could see your payments reduced or stopped entirely.
Even with an agreement, once you’ve been abroad for more than six months, you’ll generally lose supplements and could have your pension rate adjusted based on how long you lived in Australia during your working life. In short, unless you’re a self-funded retiree, you’ll need to investigate how Centrelink will treat you after a move.
Taxation is another thorny issue. Some retirees assume that if their superannuation income is tax-free in Australia, it will be tax-free wherever they go – but that’s not the case. “People don’t realise that if they retire to France or Italy and become tax residents, suddenly that superannuation income stream can become taxable,” McNally warns. Wealthier countries often tax foreign pension income, which can throw a wrench in your financial plans. Meanwhile, countries like Thailand, Indonesia, and the Philippines are noted for not taxing foreign-source retirement income under their retirement visa programs – a bonus for Aussie expats there.
The flip side is that those countries might expect you not to work or earn locally, and you must maintain certain bank balances. And let’s not forget currency fluctuations: if your income is in Australian dollars but your expenses are in Thai baht or Mexican pesos, exchange rates can make your budget unexpectedly tight. A swing in the Aussie dollar’s value can turn your “cheap” retirement suddenly pricey (or vice versa). Basically, retirement abroad adds a layer of financial risk that staying in Australia wouldn’t involve.
Finally, life in a foreign country can come with a litany of everyday challenges that are easy to overlook during those dreamy vacation planning sessions. The little inconveniences that were quirky on a two-week holiday might become infuriating when you live with them year-round. Maybe it’s the unreliable electricity, the language barrier at the local market, or the fact that you can’t buy your favourite cereal anywhere in town.
Sherry Bronson found Bali’s long wet season a real test of her patience, and those idyllic tropical thunderstorms became less romantic when paired with constant earth tremors and the occasional volcanic ash cloud. Some newcomers struggle with local bureaucracy – something as simple as getting a driver’s licence or opening a bank account can turn into a marathon of forms and fees in a foreign land.
Source: A Current Affair / YouTube
There might also be cultural norms to adjust to; what’s polite or normal in Australia might be interpreted very differently somewhere else. And while most retirees report positive relationships with locals, feeling like an outsider in a community is a possibility one should be mentally prepared for.
In some places, political instability or safety concerns are part of the landscape – for example, Thailand has had its share of political upheaval, and parts of Latin America have higher crime rates than most of Australia. None of this is to say “don’t do it” – only to highlight that rose-coloured glasses can slip off quickly if you haven’t done your homework. “Those who haven’t done their homework can become quickly disillusioned. After a few years, the novelty wears off and they move on,” Bronson observes of some expats who ultimately gave up and went home. In other words, the expat life is not for everyone, and there’s no shame in trying it and deciding you prefer the great Australian backyard and a meat pie to a beachfront condo and pad thai (or vice versa).
Weighing It All Up
Retiring abroad can be an enriching, even life-changing adventure – or it can be a costly mistake. Most likely, it’s a bit of both. The key is going in with eyes open. The experts and seasoned expats all echo the same advice: plan, plan, plan. If the idea of moving overseas in retirement is tugging at you, start by doing thorough research and soul-searching.
Take extended trips to your desired destination, not just a whirlwind holiday. Live like a local for a few months if you can – rent an apartment, shop at the markets, test out the healthcare, experience the weather off-season. These trial runs can confirm whether you’re truly comfortable there long-term. Talk to other expats on the ground; ask the hard questions about what they wish they knew before moving. On the financial side, consult a financial adviser about tax implications, and check with Centrelink (or Services Australia) about your pension portability – before you make any decisions. Ensure you can afford health insurance overseas, and have an emergency fund for trips home or unexpected costs.
It’s also wise to have a Plan B. Some retirees keep a property in Australia or maintain the option to come back if needed. This can be a safety net if health or family circumstances change, or even just a mental comfort knowing you haven’t burned all bridges. The flip side is that maintaining a home in Australia while living abroad can be expensive, so it’s a personal call. At minimum, make sure someone back home can assist you with any loose ends (like managing any Australian bills, checking your mail, or helping if you need to return on short notice).
Ultimately, whether retiring overseas is “worth it” comes down to personal priorities. Some people thrive in the novelty and challenges of a foreign environment – they love learning new languages, making international friends, and stretching their comfort zones in exchange for a rich life experience.
Others realise they value familiarity, stability, and proximity to family more than they thought. Neither choice is wrong. In fact, one beautiful aspect of retirement today is that it’s more flexible than it used to be; you aren’t necessarily locked into one place. You might spend a few years abroad and then come back, or split your time between two homes.
As National Seniors Australia notes, retiring overseas “can be an exciting and financially smart decision, but it requires careful planning”. The best thing you can do is weigh all the pros and cons – the sunny upsides and the potential downsides we’ve discussed – in the context of your own life. Crunch the numbers, talk it through with family, and maybe give it a test run. You’ve worked hard for your retirement, so you want to get it right.
So, paradise or pitfall? It might be a little of both. The good news is that you’re in the driver’s seat – you can take the leap, or not, or even change your mind later.
To wrap up, let’s leave it with a question for you, dear reader: Would you trade the comforts of home for an adventure in a foreign land during your retirement? Perhaps you’ve already taken the plunge or know someone who has. What’s your take – is the overseas retirement dream all it’s cracked up to be, or would you rather keep your roots firmly in Aussie soil?
READ MORE: From $2,000 to $0: Aussie Slashes Energy Costs with Massive Rebate
