DanO

I would agree...it would be a nightmare living in limbo like that! Enjoy your memories and go make some great new ones in the UK. Personally I would like to retire back to the UK, but financially it just doesn't make sense for me (after 26 years here)...so I have just accepted that "it is what it is" and am looking forward to making the most of my life irrespective of where I live.

There is no doubt for me. Travel absolutely does broaden the mind! I love the UK, but on my last visit I found it very much more parochial than I remembered it. The life experience of living overseas and especially somewhere as multi-cultural as Melbourne really does stretch your horizons. I know when relatives visited us here, they were constantly surprised by things which we take for granted here (car prices, petrol prices, range of fresh foods, coffee quality, blue skies, distances, house sizes, the tax system to name a few). That doesn't make Australia better than the UK, but it does make it notably different. You can never have everything, so it's a case of settling for a solution which BEST fits my needs. On balance, for me, that will entail retiring in Australia and making the most of travel overseas.

My mid-80s Aussie in-laws (until recent ill-health) ate out more often than me, knew more about Melbourne restaurants and recent films and had a wider social circle than me. I would imagine they had a lot more about them than someone who grew up and lived in Scunthorpe (insert other parochial town here) all their life. I think it is a ridiculous generalisation to say older people of one nationality are ipso facto less worthy of being "engaged with" than another.

I'm sure they speak very highly of you...

I fondly (NOT) remember going to school in the dark, and walking home through icy sleet...in the dark! I actually prefer a cooler climate overall hence I prefer Vic ( I would consider NZ or Tas weather-wise at least). In Australia, if I had to live year round in QLD, NT or WA...I'd probably move to the UK. NSW and QLD were fine when I was younger, but as I get older I just don't enjoy the heat and humidity there.

The UK is not part of the EEA since leaving the EU, as I understand it.

After a few weeks of agonizing, I have decided to retire in Australia and make do with regular trips to UK and Europe for holidays. Why? Well here are my reasons, as some food for thought for others in a similar situation: Australian state pension for myself and my Aussie wife (nearly $40,000 per year eventually), and the stress security blanket that provides. Zero UK pensions UK inheritance taxes UK council tax rates Tax free Superannuation income stream in Australia I think the Australian economy has a stronger long term outlook I am sure we could be happy in both countries, with swings and roundabouts for each, but for financial peace of mind after 26 years working in Australia, it's a no brainer overall.

As I read it, it will mean anyone who worked in Aus for X years prior to 2001 will not be credited with those years on National Insurance...so they will effectively lose those years of UK state pension.

Oh dear, it looks like the Poms are about to close the minimal "loophole" for National Insurance contributions of those who worked in Australia prior to 2001... The GOV.UK website confirms that from January 1, 2022, you will no longer be able to count periods living in Australia (before March 1, 2001), Canada or New Zealand, towards calculating your UK State Pension if both the following apply: you are a UK national, EU or EEA citizen or Swiss national you move to live in the EU, EEA or Switzerland on or after January 1, 2022, including if you move to live in another EU, EEA country or Switzerland on or after January 1, 2022

Of course any interest you earn in accumulation mode then becomes taxable. In Income stream mode it is tax free as I understand it?

We aren't desperate to leave Australia. We could retire here quite happily, but the UK option presents some interesting lifestyle and family opportunities. Europe is much less appealing including the reasons @Blue FluFlu mentions. As I stated previously, the financials for Aus (large house, tax free Super, no inheritance tax, cheaper cars and fuel, eventual pension safety net) are highly compelling reasons to stay. We can still enjoy great European holidays, and once both retired can make those stays more extensive (6-8 weeks at a time).

I note France doesn't have a reciprocal pension agreement yet. I wonder if the UK may change with all the free trade deals and AUKUS stuff that's been happening....

Sunny retirement isn't a particular incentive for me. If it was, the simpler solution would be QLD...yuk! We may consider Netherlands or France or Italy, but to be honest I don't think the appeal is the same as the UK (local pubs, National Trust and family). It's great to have options though!

Well this has drifted off my original point! All very interesting however - thanks all. In my case, at the moment I am leaning towards remaining in Australia and going on holiday to UK and Europe every 18 months. I know it costs, but the idea of walking away from (eventually) a secure $37,0000 a year in Australia to zero on the UK is just not sensible. I have some time to think further about it, but at face value I can retire here and live very comfortably for 25 years before having to rely exclusively on the pension. Considerably fewer comfortable years the UK and knowing I would never have that pension safety net is likely to shorten my lifespan through stress!

Thanks Sloth. Sounds like a fair suggestion!