Top 5 places to retire in Australia and overseas
As Australia‚Äôs cost of living continues to rise, more and more retirees are seeking value for money ‚Äìand not always in their own backyards.
While some Aussies choose to stay in the family home in retirement, many are stretching their wings and enjoying life elsewhere in Australia, and overseas.
Retirement hotspots in Australia
If you are looking for inspiration, we‚Äôve put together a list of popular retirement destinations in Australia offering unique attractions:
- Hunter Valley, NSW ‚Äì stunning golf courses, great food and wine, and better real estate deals within reach of Sydney‚Äôs big smoke.
- Esperance, WA ‚Äì an unspoilt coastline, friendly community, relatively low-priced housing and local airport about seven hours south-east of Perth.
- Mornington Peninsula, VIC ‚Äì coastal villages, endless beaches, great food, vineyards and rolling hills dotted with orchards and market gardens.
- Huon Valley, TAS ‚Äì outstanding natural beauty, clean air, a cool climate and relatively low living costs.
- Sunshine Coast, QLD ‚Äì a relaxed community atmosphere, local airport, beautiful beaches and year-round sunshine.
- Kadina, SA ‚Äì community spirit, good health services, retirement and aged care living options about two hours north of Adelaide1.
The lures of a new culture
Aussies are increasingly saying goodbye to a traditional retirement lifestyle in Australia altogether; packing up and heading overseas2. Living overseas is much easier for today‚Äôs retirees thanks to advances in communications technology, internet banking and cheaper airfares.
Some move to France and Italy for adventure and a change in culture. Other retirees head to south-east Asia where retirement savings stretch a lot further. Australia has been declared the world‚Äôs most expensive place to live3 so it‚Äôs no wonder that as Australia‚Äôs cost of living rises, many people want more value for money.
Value for money
South East Asia holds particular appeal for retirees thanks to a warm climate, friendly people and, most importantly, the cost of living being up to 80% less4.
In fact, during the global financial crisis, the number of government pensions paid to Australians living overseas increased by 30 per cent5. It‚Äôs easy to understand the attraction of a house in Bali with a pool, landscaped gardens and price tag of just $60,0006.
But Indonesia‚Äôs not the only hot spot that appeals to retired Australians. Philippines, Vietnam and Malaysia are on the lists of many. Rent in Malaysia costs about 80% less than in Sydney and you can enjoy eating out for 30% of the cost. Malaysia also offers an excellent health system and ‚Äì along with Thailand ‚Äì special extended visas for foreign retirees7.
But a move overseas can be challenging in many ways. From family and lifestyle challenges to issues relating to government pensions, super, tax, visas and healthcare – all of which need to be well considered in advance.
First things first
Wherever you choose to retire, be sure to get your finances in order first and plan ahead. As a start, use the AMP Retirement Simulator to find out how much you‚Äôll need to fund the lifestyle you‚Äôre aiming for. Your KRA Wealth Management adviser can help you with any questions you may have about your retirement fund needs. And if you are considering selling or renting out your home to fund your retirement, we can sit down with you and help you work out how your home fits in with your plans.
1 Over Sixty, oversixty.com.au/finance/retirement-income/2014/08/11-best-places-to-retire-in-australia/
2 Sydney Morning Herald, smh.com.au/money/planning/stretched-try-calling-asia-home-20150303-13pyg2.html
3 Annual world consumer price index, Deutsche Bank 2014, updated April 2015
4 Sydney Morning Herald, smh.com.au/money/planning/stretched-try-calling-asia-home-20150303-13pyg2.html
5 Australian Financial Review, afr.com/personal-finance/tax/how-you-can-afford-to-retire-abroad-20140829-jd3u0
6 Australian Financial Review, afr.com/personal-finance/tax/how-you-can-afford-to-retire-abroad-20140829-jd3u0
7 Australian Financial Review, afr.com/personal-finance/tax/how-you-can-afford-to-retire-abroad-20140829-jd3u0
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