When some people think about retiring, they see themselves enjoying the benefits of their long years of service in the country they were born in and continue with their usual lifestyle. However, others look at retirement very differently. For others, it seems that they truly want to make the best of the time they have left on this earth by moving to another country when they retire. A country that seems to be topping the list as the most ideal place to retire to is Australia.
Australia is known for its lovely beaches, great weather and low crime levels. Moving to Australia would be a great opportunity to experience a different culture. However, retiring to another country can be quite complicated. There is a lot of planning that needs to be done. As such, you have to make sure that this is something that you really want to do and you have to be willing to go through the complicated process. The following are important tips for those planning to retire abroad immigrate to Australia.
Decide whether you want to rent or buy property
If you have decided that Australia is the country you want to retire to, one thing you will have to take into consideration is where exactly you want to live and whether you want to rent or buy a property. Remember that making the decision to move abroad basically means that you will be committing all your savings to that move. You can opt for one of the bigger cities such as Sydney, or you can go for the smaller ones like Hobart. Of course, if you choose the bigger cities you should be prepared to spend more, whether you want to rent an apartment or you are planning on buying a house.
To give you a rough idea of what the housing market is like down under, the average monthly rent for an apartment in Sydney is $2,650 for a single expat. In Melbourne, you will pay an average of $1,800 per month if you are a single expat and in a city such as Hobart, rentals average $1,350 every month. For those planning to buy property, the average price of a house in Sydney is $1,142,212, while a house in Hobart will cost an average price of $530,570.
How to get your pension to Australia
Another important consideration is how you will get your pension to Australia. Ideally, it would be better if you can transfer all your pension at once. However, every country has specific regulations when it comes to making pension payments. For instance, if you currently live in the UK and you want to move to Australia when you retire, the government will not make a once off payment of your state pension. Instead, the payments will be deposited into your Australian bank account once every 3 months.
Send money through a foreign exchange broker
The best way to send funds to Australia when you retire is through a foreign exchange broker such as Moneycorp and OFX. People now prefer such companies because they offer transfer and exchange services that are way more advanced than the traditional ways of transferring money. Some of the services offered by foreign exchange companies include online money transfers, good exchange rates, access to foreign exchange alerts and 24-hour support. Foreign exchange providers usually offer lower fees as a result of the huge number of transactions they carry out.
This means that it is cheaper to send your pension funds through a broker than a bank. They are also a lot more transparent because if you go to their websites, they normally have calculators which indicate the estimated fees, the actual amount you will receive and the exchange rate. Transferring a lot of money using a foreign exchange company would be the best option.
Talk to a tax expert
As stated by the Australian online foreign exchange organization (OFX), tax is an important consideration if you are planning to relocate abroad because you will have to adhere to the tax regulations in your country of origin, as well as the country you will be relocating to. Because this is such a complex issue, you will definitely need to see a tax expert to assist you. You want to make sure that you pay the necessary taxes in both countries to avoid penalties. There are, however, certain nations which have a treaty with Australia known as the double tax treaty. If Australia has an agreement with your country of origin, you will only be obligated to pay taxes in one country.
Another reason why more and more people are retiring to Australia is because of its good quality health care services. The country also has a higher life expectancy when compared to some first-world nations. However, it is important to note that if you choose to retire to Australia, you will not be entitled to Medicare, Australia’s government medical aid provider. Therefore, you need to make sure that you have enough money to secure your own all-inclusive medical aid policy from a reputable company.
Your health is of paramount importance, especially as you get older. As such, you need to make sure that you will receive good quality health care services in the country you are retiring to. Also, because you are about to reach your retirement age or you have already reached your retirement age, you also need to consider the fact that you will not be able to take care of yourself when you get to a certain age. Therefore, you might need to move into a home for the elderly or get some assistance where ever you choose to live. Both will require a considerable amount of money.
These are some of the factors that you will have to consider in the event that you want to retire abroad in Australia. While it’s not an easy process, it is possible to enjoy your retirement in a foreign country.