The best places for Australians to retire overseas
Idyllic landscapes, lower living costs and enriching cultural experiences are some of the perks retirees can expect when retiring abroad. These countries are some of the best to consider.
Life after work is a daunting thought for some. That period in time where you move beyond the thing that has dominated one third of your day for most of your life. For some, it’s a huge relief. Relinquishing the burden of work to enjoy the spoils of life can spell freedom and flexibility. For others, it can come with adverse effects, like a loss of purpose or meaning.
But something that works for both scenarios, is a shift to life on new pastures. A working life lived on Australia’s shores replaced with your feet up and a drink in hand somewhere else in the world. Australia has a strong travelling culture, being an island nation, we spend our lives hopping on planes and visiting the great sites around the world. It’s no surprise that plenty of us want to head abroad to enjoy our twilight years.
According to the most recent data from the Australian Bureau of Statistics, 9,600 Australians opted to retire overseas — however that was before the pandemic. And while the pandemic might have stalled the plans of Australians aged 65-plus to pack their bags and head abroad, the return to normal travel is likely to see more and more people head to destinations around the world to enjoy the most out of their retirement. Even with changes in health insurance, or access to a universal healthcare system, plenty are taking the risk with international living in retirement.
Once you have the basics ticked off before heading — the right visa, your tax and super implications under new residencies, pension entitlements, and bank accounts — then you can start your planning on retirement outside Australia. The financial, health, lifestyle, and governmental implications are widely different depending on where you are planning on heading, and the rules vary, so it is always worth doing your research beforehand.
But then after everything is in order — the big question is — where to retire to? Despite Australia itself being one of the best countries to retire in, that hasn’t stopped people from seeking out some of the other popular destinations. Whether those Australians are drawn to the lower cost of living, quality of life, or just a change of view, there’s a lot to be excited about international living. From just across the pond to New Zealand, or to European nations like Greece or Portugal — Australians continue to seek out retirement locations that mirror popular destinations in pre-pandemic travel times.
Below, we round up the most popular destinations for Australians to retire abroad.
New Zealand
Our Tasman neighbour New Zealand is one of the most attractive destinations for retirees thanks to its proximity and lack of language barrier. With breathtaking scenery, and more places to find a relaxed way of life not too dissimilar from the Australian one, it’s an attractive prospect for retirees looking for something different, but not too different.
With plenty of land available for movers in some of the most scenic locations across the country, retirees can make full use of a little extra space in New Zealand, and it’s only around a three-hour flight home. Political and economic conditions match those back home, access to affordable healthcare is similar to Australia, and all you’ll need to do is be able to deal with the accent.
Portugal
The small country on the edge of the Iberian Peninsula might not be your first choice for retirement, but it might just be the best. Portugal continually ranks high on lists of the best countries to retire for foreigners. The leading reason for this is the country’s enticing retirement tax laws for foreign retirees. In the hope that many retirees will venture to Portugal to boost the economy, Algarve is one of the best regions in the country, full of resort towns that are sleepy, but well connected — perfect for retirees.
With a lower cost of living than both of its European neighbours (and Australia), and the warm Mediterranean climate, Portugal is an attractive destination for Antipodeans looking to settle down in comfort.
Italy
There are countless stories of travellers, writers, and other creatives visiting Italy, or spending time living in Italy, and subsequently falling in love. Despite being a nation with countless communities all over the world, plenty are looking back towards Italy to enjoy their retirement. With a diverse landscape and laid-back lifestyle, Italy is an attractive destination for Australian retirement. Whether in the rolling hills of Tuscany, or the soft sun of Puglia, the warm climate of Italy holds much in common with Australia.
Coupled with lower housing costs, and a reliable healthcare plan for medical services for retirees, doctor visits won’t cost the world. Retiring in Italy can be more cost-effective than people think. Italy’s proximity to much of mainland Europe also makes it an enticing destination for retirees who still have a few years of travel left in them, and want to make the most of a central location in Europe.
Greece
Similar to Italy, Greece boasts a warm climate and a relaxed lifestyle for retirees. With countless islands to choose from, Greece is one of the most attractive countries in the world for Australians looking for a quieter retirement. The small island of Icaria in Eastern Greece is considered one of the five “Blue Zones” around the world. These locations are remarked upon for the tendency for inhabitants to regularly live to an advanced age. Here it’s estimated around one in every three makes it to life after 90.
A combination of high-quality diet, lifestyle, and genetics; choosing to retire here long term, and embrace the Greek style of living could mean your retirement years extend far beyond what you initially planned. Food for thought.
Spain
One of the preferred retirement locations for our friends over in the United Kingdom, Spain is increasing in popularity with Aussie retirees too. With thousands of kilometres of coastline, Spain rivals Australia as a retirement destination for retirees seeking world class access to the ocean and sea. There’s even a national park or two for the explorers.
Retiring overseas to Spain is another attractive European option for Australians, particularly given it is one of the 31 countries Australia has a bilateral social security agreement with, meaning you can access your pension from there. Given the lower cost of living, retirement looks like a dream in Alicante or Bilbao, or even the more metropolitan cities of Madrid and Barcelona.
Indonesia
Another location in proximity to Australia, Indonesia is home to one of Australia’s top tourist spots — Bali. For many, one trip here is all it takes to fall in love with the Balinese lifestyle, or Indonesia at large, and start making plans to retire here. With a growing number of Australian expats making the move to our northern neighbours, retiring here could see you surrounded by Australian operated bars, restaurants, and even hotels.
Whether that is your goal, or something to avoid, Indonesia has plenty of attractive destinations outside Bali. For somewhere more bustling there’s Jakarta, or Lombok for someplace more serene. The opportunities are plentiful, and inexpensive, in Indonesia, plus Australia is only a short few hours flight away.