Would You Retire Overseas?

For some, the opportunity to live outside of Australia was taken at an earlier point in life, often career-related. For others, a dedicated career spelled quite the opposite – there was little time for travel, and then along came a family, which usually meant even less time for international wander. And while the years – and chances – may seem to have passed, you would be wrong to believe they’ve gone entirely. Have you ever thought about retiring overseas?

People become expatriates in retirement for a raft of different reasons. For some, it’s to take advantage of newfound time (and there’s plenty of it!), and to spend that time exploring a different part of the planet, perhaps taking on a new language or volunteering in less developed counties. For others, it might be as straightforward as leaving for the financial benefit, or for a more comfortable climate. For Australians, there isn’t a great need to move overseas for medical purposes, as is the case with many United States nationals (that said, medical tourism remains popular, largely for cosmetic purposes).

A little research reveals that dozens of attractive nations uphold their own unique retirement visa policies, usually reserved for the over-50 or over-60 age groups. Australia’s geographical location puts us at a special advantage – we’re surrounded by a raft of South East Asian nations like Malaysia, Thailand and Indonesia. From most major Australian cities, it’s a direct flight not exceeding 10 hours to most Asian capitals, meaning family remaining in Australia isn’t so far away after all. The time difference, too, isn’t going to be a big deal.

The Kingdom of Thailand is especially favoured among retiring Australians, not least for its straightforward retirement visa policy. The criteria for retiring in Thailand requires applicants be aged over 50, and without a criminal history. That’s not so hard to achieve. Of course, the Thai government also requires proof of finances to support oneself, but with one Australian dollar being the equivalent of 25.22 Thai baht (at the time of writing), it’s again not an unattainable goal. To meet the financial requirement, applicants must either deposit the equivalent of roughly AUD$32,000 or have a monthly income or pension of at least AUD$2500.

While some countries legally restrict Australian citizens from buying land and property, Thailand allows non-national retirees to own condominiums. Some individuals or couples might take up this enticing offer to perhaps split their year between Thailand (or elsewhere) and Australia, but there are examples aplenty of Australians who have given up the Great Southern Land for the home of Panang curry, Pad Thai and sticky rice. And why not?

In a 2014 article from SBS Dateline titled Champagne lifestyle on a lemonade budget: Why so many Aussies are moving to Thailand, a former Byron Bay resident who relocated to Chiang Mai said his retirement choice spot has “the best balance of scenery, culture, cost and fun that I’ve been able to find anywhere… most of the Aussie expats here would say pretty much the same thing”. It’s a sentiment echoed broadly by other expats, and one that is likely to see growth as the ageing population continues to expand and people seek options outside of tradition.

Tradition abandonment and finance aside, choosing a permanent, or even long-term retirement offshore is a huge decision to make. Many factors come into play, not least of all health. While a country like Indonesia has what seem to be benefits galore, if you were to require an ambulance or a sophisticated western hospital in the event of sudden illness or accident, the situation could end up being less than ideal. That’s not what you, or your family back home want to be thinking about. International travel insurance has a role here, as does whether or not your country of choice has an International Social Security Agreement with Australia.

Ultimately, retirement choices are as much a balancing act as most career, family and personal choices are. In that respect, retirement’s not so different to pre-retirement, is it?

Would you retire abroad?

We’ll be covering a different destination in each issue and we’d love to know where you’d love to spend your golden years.