Bridgeman Posted September 7, 2014 Share Posted September 7, 2014 Not sure if this is the right place to post this but am sure someone will move it if not. I have just been reading a thread about bringing parents over to Australia and there was some discussion about how expensive it is to live in Australia for retirees, We certainly find it so, and often think whether we would be better off returning to the UK. Has anyone ever done a comparison for cost of living for retirees in Australia versus UK or even a comparison of which is the cheapest state to live for retirees, apart from maybe Tasmania? I assum probably not as most parents would want to live where their family are. We are in WA and have always had a general impression that it might be cheaper in Queensland, but find it difficult to compare as the state Seniors Cards give different benefits. For example we get free travel on all Transperth Services and discounts on longer distance transport, whereas I know Queensland only offer a 50% discount on fares. We also get a discount on the rates, but I don't think you can get such a good deal in Queensland. Anyone have any informed opinions? Link to comment Share on other sites More sharing options...
starlight7 Posted September 7, 2014 Share Posted September 7, 2014 Maybe South Australia? Housing is certainly cheaper and the climate ( warm and dry) might suit an older person more than some of the hotter regions. Link to comment Share on other sites More sharing options...
Quoll Posted September 7, 2014 Share Posted September 7, 2014 Dunno, I'd have thought maybe Tasmania but my impression is that, given the services available here in UK, that the UK would be cheaper still, all things considered. We did think about remote Gippsland at one stage but I think I'd have probably slit my wrists by now. I can't imagine that metropolitan living would be cheap for retirees anywhere. Link to comment Share on other sites More sharing options...
Marisawright Posted September 9, 2014 Share Posted September 9, 2014 there was some discussion about how expensive it is to live in Australia for retirees, We certainly find it so, and often think whether we would be better off returning to the UK. Has anyone ever done a comparison for cost of living for retirees in Australia versus UK or even a comparison of which is the cheapest state to live for retirees, apart from maybe Tasmania? I can't offer you a spreadsheet, but we have been debating a similar issue ourselves. When comparing areas in Australia, I think the most important thing is the cost of housing. If you're in a major Australian city, that's your biggest cost whether you own or rent: if you own, you've got more money tied up in property (and therefore less to spend); if you rent, then you're paying out more money every month. Last time I looked, the ranking by house prices for Australian cities went from Sydney (most expensive), then Canberra, Melbourne, Perth, Brisbane, Adelaide, to Hobart (cheapest). Not sure where Darwin fits in! House prices outside the cities (and away from the coastal resorts) are cheaper than any of the cities, but you have to consider whether a country lifestyle is for you. Life in a small town in Australia is very different from life in a small town in the UK - they are so far apart, for one thing. Both purchase and rental prices are easy to compare on domain.com.au The big issue with returning to the UK is tax and pension implications. If you're not already getting the Australian aged pension, you won't be able to get it in the UK, ever (you have to be living in Australia at the time you become eligible). You may not be eligible for any UK benefits for some time after you arrive. You should also check what your entitlement to the UK pension would be: http://www.britishpensions.org.au/pension-guidelines.htm#No1 http://www.britishpensions.org.au/travelling.htm If you have investments in Australia and leave them in Australia, you will pay a lot more tax on them - because as a non-resident, you'll be taxed on every cent, instead of getting a tax-free threshold. In the scheme of things, the cost of moving is not really an issue. We looked into it, and the difference between moving our house contents to Melbourne and moving to the UK wasn't that great! Link to comment Share on other sites More sharing options...
Petals Posted September 9, 2014 Share Posted September 9, 2014 I take the view that a rolling stone gathers no moss, so the longer you have been in the one place the more reasonable a retirement will be, for instance if you are living the dearer places like Sydney and Melbourne and retiring its probably that the house is paid off so its not taken into account. If a person takes an allocated pension with super then no tax is paid on the income and also most people will get a part pension. Part pension gets medical, travel, rates rebates etc. At 60 we can access the seniors card if not above a certain income threshold. If not eligible for the pension because of assets etc but income is still lower then we get a medical card to get cheap medicines etc. I am retired and I am fine and I do not believe that I would be better off living in the UK. I do not get a pension from the gov but I do get a medical card and I can manage fine. I also believe it will depend on what you have whether you have a good retirement in the UK and Australia, because in my experience paying for stuff has benefits over being entitled to stuff. So it comes down to the mighty pound and the dollar. Link to comment Share on other sites More sharing options...
Parley Posted September 9, 2014 Share Posted September 9, 2014 Agreed I would hate to be in the situation where I had to choose based on what is cheapest. That is not what retirement should be about. Choose where you will be happiest. Link to comment Share on other sites More sharing options...
Bridgeman Posted September 9, 2014 Author Share Posted September 9, 2014 Thanks everyone for your replies. As I said we are finding it very expensive here in Perth and were just wondering whether it varied from state to state. We probably won't stay in WA in the long term. Link to comment Share on other sites More sharing options...
Guest Posted September 9, 2014 Share Posted September 9, 2014 If I was retiring, I would live in a unit on the Sunshine Coast Link to comment Share on other sites More sharing options...
Tina2 Posted September 9, 2014 Share Posted September 9, 2014 There are many large country towns with all the amenities you might need but the cost of housing is far less. You will find these towns in NSW, VIC and QLD not sure about the other states. When I say large country towns these places have several hundred thousand people. One thing to think about is where are all your family or friends. If you move away to live in less expencive places then will you be able to afford to travel regularly to visit family. Just a few examples, Bendigo, ballarat, (VIC) bathurst, orange,(NSW) Ipswich, Toowoomba (QLD) South Aus can get to the mid 40s in summer so A/C cost come into play, just as some towns in NSW and VIC that need heating in winter. Lots of places along the coast line but they tend to be more expencive. Link to comment Share on other sites More sharing options...
Xenon4017 Posted September 9, 2014 Share Posted September 9, 2014 Or move to a place where you get more for your money. Bali, for example. It's closer to Perth than Sydney. Link to comment Share on other sites More sharing options...
Tina2 Posted September 9, 2014 Share Posted September 9, 2014 Or move to a place where you get more for your money. Bali, for example. It's closer to Perth than Sydney. Agree 100% but was told by a friend yesterday the the Government is going to cut off Aus pensions if you are out of the country for more than 12 months, so you would need to be self supporting. Link to comment Share on other sites More sharing options...
Fisher1 Posted September 9, 2014 Share Posted September 9, 2014 I'm confused. I thought that parents retiring to Australia weren't entitled to anything for ten years, and then only if they were in dire straits? Link to comment Share on other sites More sharing options...
flag of convenience Posted September 10, 2014 Share Posted September 10, 2014 There was a segment on SBS Dateline last night on the increasing numbers of Aussie retirees moving to Thailand for their retirement. Their numbers are further expected to swell as the cost of living and quality of life further declines for those on fixed incomes. The comments were all positive from the retirees who come from various western countries, including couples, with all facilities provided and even dementia care. An apartment fully furnished, built to a good quality can be had for around $60,000 which includes pool and often gym and security. In fact the fellow that has the bottle shop down the road from where I live has already purchased a place and he and his Irish born wife are heading there inside eighteen months to start an early retirement. Why put up with over priced Australia or cold, dank UK when so many options exist outside the box. Oh and health care is very good with overseas trained, English speaking doctors, with cheap high quality care available. Bali is popular with Aussies. Penang in Malaysia more popular with Brit's. Many options available. Link to comment Share on other sites More sharing options...
flag of convenience Posted September 10, 2014 Share Posted September 10, 2014 Agree 100% but was told by a friend yesterday the the Government is going to cut off Aus pensions if you are out of the country for more than 12 months, so you would need to be self supporting. I haven't heard that one. There is a lot of misleading information around. As I understand it a recent requirement is to be resident two years prior to receiving pension and being in the country when commencing a claim unless living in a country which has an agreement with Australia. Some 17 do, but none in South East Asia nor UK. Sadly the Aussie pension is not transportable to the same degree as is the British or American. Link to comment Share on other sites More sharing options...
flag of convenience Posted September 10, 2014 Share Posted September 10, 2014 As for living in WA as the OP does, nowhere is cheap but towns down South of the state, namely Albany and Denmark have large retired populations. Both can get cold though in winter, but pleasant summers. Still hardly so cost effective though. Link to comment Share on other sites More sharing options...
Parley Posted September 10, 2014 Share Posted September 10, 2014 Im not sure what the exact rules are but as a taxpayer I certainly would not expect that Brits would be able to migrate to Australia settle briefly in Australia and then retire in Bali or Thailand and gt an Australian pension. If they have paid tax in Australia for 20 or 30 years then I can expect some leeway, but would not want Australia supporting people who are not living in Australia, unless they have paid into the Australian tax system over a very long period of time. Overall I don't really see why countries should pay pensions to people who don't live in the country. Link to comment Share on other sites More sharing options...
flag of convenience Posted September 10, 2014 Share Posted September 10, 2014 Im not sure what the exact rules are but as a taxpayer I certainly would not expect that Brits would be able to migrate to Australia settle briefly in Australia and then retire in Bali or Thailand and gt an Australian pension.If they have paid tax in Australia for 20 or 30 years then I can expect some leeway, but would not want Australia supporting people who are not living in Australia, unless they have paid into the Australian tax system over a very long period of time. Overall I don't really see why countries should pay pensions to people who don't live in the country. Ten years in Australia, five of those being continuous the last time I checked which was 2011 rules. I believe they may have changed. Actually saves the taxpayers money having older folk moving abroad and no idea why Australia hinders this freedom of movement. Foreign retirees should not be entitled obviously to any entitlements. (if never worked in Australia) Link to comment Share on other sites More sharing options...
Bridgeman Posted September 10, 2014 Author Share Posted September 10, 2014 There are many large country towns with all the amenities you might need but the cost of housing is far less. You will find these towns in NSW, VIC and QLD not sure about the other states. When I say large country towns these places have several hundred thousand people. One thing to think about is where are all your family or friends. If you move away to live in less expencive places then will you be able to afford to travel regularly to visit family. Just a few examples, Bendigo, ballarat, (VIC) bathurst, orange,(NSW) Ipswich, Toowoomba (QLD)South Aus can get to the mid 40s in summer so A/C cost come into play, just as some towns in NSW and VIC that need heating in winter. Lots of places along the coast line but they tend to be more expencive. We have family both in Perth and also in Queensland so do need to factor in travel costs. Also if we went back to the UK would want to visit often. Link to comment Share on other sites More sharing options...
Bridgeman Posted September 10, 2014 Author Share Posted September 10, 2014 If I was retiring, I would live in a unit on the Sunshine Coast Mmm yes, we are thinking about Buderim. Link to comment Share on other sites More sharing options...
Bridgeman Posted September 10, 2014 Author Share Posted September 10, 2014 I'm confused. I thought that parents retiring to Australia weren't entitled to anything for ten years, and then only if they were in dire straits? Yes, that's true, you aren't eligible for the Australian pension till you have been here 10 years and then it's means tested. Another disadvantage we have found is that since we are not eligible for the Oz pension we are also not eligible for the Seniors Tax Offset which would make a huge difference to us. Link to comment Share on other sites More sharing options...
Bridgeman Posted September 10, 2014 Author Share Posted September 10, 2014 Im not sure what the exact rules are but as a taxpayer I certainly would not expect that Brits would be able to migrate to Australia settle briefly in Australia and then retire in Bali or Thailand and gt an Australian pension.If they have paid tax in Australia for 20 or 30 years then I can expect some leeway, but would not want Australia supporting people who are not living in Australia, unless they have paid into the Australian tax system over a very long period of time. Overall I don't really see why countries should pay pensions to people who don't live in the country. Yes, I quite agree and in fact we are not entitled to an Australian pension till we have been here ten years, but due to means testing we are unlikely to get anything as we draw most of our pensions from the UK - another factor which affects us is that we are at the mercy of the exchange rate. Link to comment Share on other sites More sharing options...
ramot Posted September 10, 2014 Share Posted September 10, 2014 Mmm yes, we are thinking about Buderim. We retired 11 years ago from living in Asia and moved to the coast and live minutes away from Buderim. Property tends to be a bit cheaper, if you live off the mountain. we have no regrets at all moving here, I'm afraid I don't know if it's any cheaper than WA. But from a retirees point of view almost everything you might want to be involved in is up and running in the area. we were made so welcome from day 1. There is a good mix of people who have retired here from various parts of Queensland and Australia, + other countries which makes it easier to assimilate. we don't find the climate a problem, it does get humid in summer but we have reverse cycle air con. Have hardly needed to run it this winter, and to be honest don't run it all that much in summer, as we have fans. we have installed solar and obviously had to pay to install it, but have hardly had to pay an electricity bill since. I think our last bill was $100.00 for 3 months? But we got a very good rebate rate when we installed it. good luck with whatever you decide, bit we love it here. ps all our income comes from UK as well, so sympathise with your dilemma. Link to comment Share on other sites More sharing options...
starlight7 Posted September 10, 2014 Share Posted September 10, 2014 Lucky ducks with the solar. We have it on our roof but it doesn't make a lot of difference for us. Too many big trees ( they are protected so we can't cut them down). An advantage of living in one of the warmer parts of Australia I guess for you. Must admit I do like the woodfires , electric blankets and jumpers bit in Winter though! Link to comment Share on other sites More sharing options...
Fisher1 Posted September 10, 2014 Share Posted September 10, 2014 On the subject of pension entitlement - The reason countries have to pay pensions to expatriate pensioners is because it is not normally legal to force individuals to pay pension contributions for thirty/forty years and then not give them any return on their obligatory investment. State pension contributions are not some kind of tax, but a payment towards a pension later on. Which you will be entitled to. Wherever you happen to live. I asked the question, not because we expect anything from Australia (we're not even sure Australia will let us in yet!) but because I was genuinely puzzled by seemingly contradictory comments from different posters. The more I read about the cost of living the more I worry about a potential move to join only child and family. Can anyone give me a ball park figure of the sort of monthly income you'd need to live in reasonable comfort? Since housing varies so widely, how much a month would you need in addition to housing costs? Any sensible replies welcomed! Link to comment Share on other sites More sharing options...
NickyNook Posted September 10, 2014 Share Posted September 10, 2014 On the subject of pension entitlement - The reason countries have to pay pensions to expatriate pensioners is because it is not normally legal to force individuals to pay pension contributions for thirty/forty years and then not give them any return on their obligatory investment. State pension contributions are not some kind of tax, but a payment towards a pension later on. Which you will be entitled to. Wherever you happen to live. That may be the case in the UK but it is not true for Australia. In Australia, people do not pay State Pension contributions. The Australian Age Pension is a means tested benefit paid to those people who don't have the funds to support themselves in retirement. It's not the same as the UK pension, at all. The more I read about the cost of living the more I worry about a potential move to join only child and family. Can anyone give me a ball park figure of the sort of monthly income you'd need to live in reasonable comfort? Since housing varies so widely, how much a month would you need in addition to housing costs? Any sensible replies welcomed! The retirement standard (according to the Superannuation industry) for a couple is currently $645 a week for a 'moderate' standard of living and $1100 a week for a 'comfortable' standard of living. These figures do not include housing costs. http://www.superannuation.asn.au/resources/retirement-standard My OH and I would regard ourselves as comfortably off and we spend much less than $1100 a week on normal living expenses. Link to comment Share on other sites More sharing options...
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