Retiring abroad: Australia

If you dream of retiring abroad like many UK pensioners, it’s a big decision that can affect your pensions.

In a poll carried out in 2006, the majority of Britons, 53% would consider emigrating. Indeed, each year more than 300,000 individuals leave the UK to start a new life overseas.

Estimates suggest that up to 5.5 million British nationals now live abroad. Australia is the number one expat destination for Britons who choose to live abroad. According to the Australian Government Department of Home Affairs. The total number of British citizens estimated to be living in Australia in 2021 was almost 1.2 million. This is followed by the USA and Canada.

Ranking British expats by country

• Australia
• USA
• Canada
• Spain
• Ireland
• New Zealand
• France
• South Africa
• Germany
• Italy

 

Retiring abroad Australia: Residence permit

Unfortunately, the retirement visa was cancelled in 2018 and is not open any more.

It is now a lot trickier to obtain a retirement visa. However, there are still routes available to obtaining a retirement down under. 

Your best option if you wish to retire down under and have children who are permanent residents of Australia. You can apply for a temporary residence of up to 5 years. 

Your child would have to have been a resident of Australia for at least 2 years. Then you can apply for a Sponsored Parent Visa (Temporary). 

The fee per applicant is AUS $1,145 per applicant. For a 3 year visa, AUS $4,590 per applicant before visa decision. For a 5 year visa, AUS $10,325 per applicant before visa decision. With 90% of applications processed within 6 months.

You cannot work in Australia. But you can apply for further visas to visit for a maximum period of 10 years. 

There are two types of Permanent Parent Visa - contributory and non-contributory,

Contributory application processing times are very lengthy. Currently, 12 years! No doubt due to the huge number of British expats living in Australia. 

The current cost of the offshore visa application is AUS $4,765 for the main applicant, AUS $1,605 for the dependant partner. In addition, a whopping AUS $43,600 per person paid before the granting of the visa. 

A large contribution is required to offset the rights. These are awarded to the visa holder. Health care would be one of these rights, as visa applicant would have never paid into the Australian system. 

Non-contributory visa processing times are even longer - currently at 29 years! Surely, a world record.

Other conditions to resident permits include relevant medical certificates, police certificates and medical insurance.

Retiring abroad Australia: taxation advice 

Australian residents are subject to tax on their worldwide income. 

Retired expats are subject to a reporting regime for all foreign held investments. If a retired expat has a foreign savings that exceeds a certain threshold. This must be declared to the Australian Taxation Office.. 

The tax complexities for retired expats could be a concern. Therefore, speaking to a financial advisor would be a good start. This would be required to determine if retiring to Australia can work in your favour.

Qualifying Recognised Overseas Pensions Scheme (QROPS)

The setting up of a foreign exchange account should address currency risk.

Alternatively, expats often consider transferring their pensions to a QROPS. Therefore, avoiding currency transfer risks.

Retiring abroad:  Australia | New Zealand | USA | Canada | Spain | Portugal | Italy | France | Germany | Ireland