It may come as a surprise but the great land down under ranked sixth out of 43 nations when it comes to the Global Retirement Security Index.
The index considers a wide range of factors including interest rates, inflation, government indebtedness, governance and tax pressure. With it’s beautiful beaches, stunning wine regions, vast open space and excellent end-of-life care, it’s no wonder that Australia receives a great deal of attention when it comes to planning for our golden years.
As an non-Australian citizen, just what do we need to plan for when considering retiring in Australia.
Two of the more common options here are the Retirement Visa and the Investor Retirement Visa. This is for those aged over 55, without dependents other than your partner, and plan to make investments in Australia over the long-term. You must also meet the income requirements to be granted the visa in Australia, so it’s important that you plan for these steps sooner rather than later.
Should you start considering setting up a superannuation fund in Australia as an expat. You can read more about the tax benefits of superannuation in retirement here and other key information about the benefits of super here.
Transferring Your Pension
Depending on where your retirement nest egg is, you may wish to transfer this to a complying Australian super fund. This will typically create tax advantages as well as providing you with a significant windfall when it comes time to retire and start drawing an income. Your super fund will typically be taxed at a much lower rate than an overseas pension being drawn in Australia.
Rent vs. Buy
It’s important to consider whether you plan to spend the majority of your golden years in Australia, or whether you plan to continue to move, and travel the world now that you have the time to do so. Consider whether it’s more financially sensible to rent or buy your home in retirement.
It’s important to plan ahead and ensure a tax efficient strategy of not only shifting yourself and your partner, but ensuring that your wealth is transferred in a tax efficient manner also.
If you’re planning on retiring in Australia, or currently considering your options, speak to us at Australian Expatriate Group to ensure that you’re financially well prepared.
To Your Financial Success!
Jarrad Brown is an Australian-trained and qualified Fee-Based Financial Planner with Australian Expatriate Group, division of Global Financial Consultants Pte Ltd providing specialist financial advice and portfolio management services to international and local professionals in Singapore.
Australian Expatriate Group is licensed by Global Financial Consultants in Singapore, with a team of Australian-trained, experienced and qualified, allowing us to provide specialist advice to Australians living abroad.
To learn more about how we may be able to help you, please contact us:
✆ +65 8282 5702
To discuss how these changes affect you, click here to book a complimentary consultation: http://bit.ly/Book-Your-Consultation
General Information Only: The information on this site is of a general nature only. It does not take into account your individual financial situation, objectives or needs. You should consider your own financial position and requirements before making a decision.