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Wanderer Returns

How much do you need to retire in Australia in 2021?

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My dream retirement would be to spend six months here and six months in Canada. That would make me the happiest clam in the world. Unfortunately, economics come into play and seemingly dash my hopes of that ever happening......unless I win the lottery or stumble upon an insanely large inheritance from a relative I've clearly never met!

Edited by Canada2Australia
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6 minutes ago, Canada2Australia said:

My dream retirement would be to spend six months here and six months in Canada. That would make me the happiest clam in the world. Unfortunately, economics come into play and seemingly dash my hopes of that ever happening......unless I win the lottery or stumble upon an insanely large inheritance from a relative I've clearly never met!

We thought we might split the year between Australia and UK when retired, but decided against. While we were expats for 10 years, I had split my time between 2 countries, children in one, husband in other, constantly adjusting between both,  neither felt  home, so decided one place had to be home when retired, it’s also probably an expensive option. Do you own a property in either? do you rent it out when away? Our compromise was to go back to UK pre covid most years for about 3 months, the main reason being our only grandchildren are there. Honestly 18 years later, our life is here in Australia not in England. Yes we still have friends and family there, but 2 of our children followed us here, and we have more family here unexpectedly than in UK  as all the African side of my family have moved here over the years. If it wasn’t for our son and grandsons we would hardly ever go back, 18 years is a long time to continually split a third of your life between 2 countries, the novelty of  travelling and the expense wears thin.

Obviously everyone’s circumstances are different, but as someone who has actually had the experience I wouldn’t recommend it. 

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5 minutes ago, ramot said:

We thought we might split the year between Australia and UK when retired, but decided against. While we were expats for 10 years, I had split my time between 2 countries, children in one, husband in other, constantly adjusting between both,  neither felt  home, so decided one place had to be home when retired, it’s also probably an expensive option. Do you own a property in either? do you rent it out when away? Our compromise was to go back to UK pre covid most years for about 3 months, the main reason being our only grandchildren are there. Honestly 18 years later, our life is here in Australia not in England. Yes we still have friends and family there, but 2 of our children followed us here, and we have more family here unexpectedly than in UK  as all the African side of my family have moved here over the years. If it wasn’t for our son and grandsons we would hardly ever go back, 18 years is a long time to continually split a third of your life between 2 countries, the novelty of  travelling and the expense wears thin.

Obviously everyone’s circumstances are different, but as someone who has actually had the experience I wouldn’t recommend it. 

My difference is almost all of my family and friends will stay in Winnipeg, and Canada in general. So I will always have people to visit and live life with over there. Here, I will never make the kinds of friends I have back home, and I've accepted that harsh reality. I moved here too late in my life to be able to do so. But it will always be a dream of mine to live equality in both countries.

Edited by Canada2Australia
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4 minutes ago, Canada2Australia said:

My difference is almost all of my family and friends will stay in Winnipeg, and Canada in general. So I will always have people to visit and live life with over there. Here, I will never make the kinds of friends I have back home, and I've accepted that harsh reality. I moved here too late in my life to be able to do so. But it will always be a dream of mine to live equality in both countries.

We were 60 when we moved here!!!  and all 3 children were still in Uk,  So there is hope.I hadn’t had much contact with the African side of my family since the late 1960’s, but as all newcomers here we have re established family ties and have 3 generations here, including 6 young children. If you had told me when I was 40, that my life would play out how it has, I would have laughed. You never know the future. 

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On 25/08/2021 at 20:51, HappyHeart said:

You get by on whatever you have. I won’t be worried once the mortgage is paid off and I certainly won’t be replacing the car every 3-5 years- what a gigantic waste of funds. 

That's what I thought about the car too. My last one I changed for a 2nd hand one last year. It was a 2005 X trail. 240,000km on the clock, my son bought it off me and it's still going strong.

I have now got a 2014 Audi Q5 that will probably see us out.

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9 hours ago, ramot said:

We were 60 when we moved here!!!  and all 3 children were still in Uk,  So there is hope.I hadn’t had much contact with the African side of my family since the late 1960’s, but as all newcomers here we have re established family ties and have 3 generations here, including 6 young children. If you had told me when I was 40, that my life would play out how it has, I would have laughed. You never know the future. 

How'd you manage that? My Sister and family wanted to emigrate after they visited us for the first time. Her then hubby was in the police force and police were recruiting all over. They applied but there were hundreds of applicants for a few hundred places. Went for interviews, medicals, eventually got sent down to London for an interview and talk at the Embassy. Cost them lots of money to do all that. They then got put in a "pool" for the next intake.

Never happened, try as they might they never got in. It's not easy.

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8 hours ago, Paul1Perth said:

That's what I thought about the car too. My last one I changed for a 2nd hand one last year. It was a 2005 X trail. 240,000km on the clock, my son bought it off me and it's still going strong.

I have now got a 2014 Audi Q5 that will probably see us out.

Agree, I always said my next car would be electric because there will be no combustible engines left when i need one.

Although currently 1 yr old cars are selling for more than the brand new retail price due to lack of supply, so a very good time to sell a used car if you can wait for a new one.

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18 hours ago, Canada2Australia said:

My dream retirement would be to spend six months here and six months in Canada. That would make me the happiest clam in the world. Unfortunately, economics come into play and seemingly dash my hopes of that ever happening......unless I win the lottery or stumble upon an insanely large inheritance from a relative I've clearly never met!

you could do some time in a cheap country with cheap rentals and living costs like Thailand or the UK on tourist visas, then less in Canada and Australia.   Just keep going round the world following the weather.

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41 minutes ago, Robert Dyson said:

you could do some time in a cheap country with cheap rentals and living costs like Thailand or the UK on tourist visas, then less in Canada and Australia.   Just keep going round the world following the weather.

That sounds like a great idea provided you're either content with your own company, or find it easy to make acquaintances wherever you go.  You're not likely to make or keep friends if you're moving on every few months.  One thing they always emphasise is the importance of having a community in old age, and you're going to miss out on that. 

Edited by Marisawright
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Scot by birth, emigrated 1985 | Aussie husband applied UK spouse visa Jan 2015, granted March 2015, moved to UK May 2015 | Returned to Oz June 2016

"The stranger who comes home does not make himself at home but makes home itself strange." -- Rainer Maria Rilke

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On 12/09/2021 at 05:25, Robert Dyson said:

you could do some time in a cheap country with cheap rentals and living costs like Thailand or the UK on tourist visas, then less in Canada and Australia.   Just keep going round the world following the weather.

You could follow the weather without leaving WA. A lot of our friends have caravans and boats and disappear up North for the winter.

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19 minutes ago, Paul1Perth said:

You could follow the weather without leaving WA. A lot of our friends have caravans and boats and disappear up North for the winter.

Just love the Kimberlies and Pilbara. My idea of losing yourself in Paradise!

Cheers, Bobj.

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On 22/08/2021 at 21:24, Wanderer Returns said:

I'm wondering just how much you would need to retire these days, if you were single - or a couple. I appreciate it's a 'how long is a piece of string' question, but let's say for the sake of argument that the retiree(s) mortgage is paid off, they aren't renting, and they don't have any other loans or major outgoings. They lead a modest lifestyle, with one overseas holiday a year, and replace their car every 3-5 years. They are retiring at 60, so will be completely self-funded until they reach retirement age. Would $40,000 for a single person, or $60,000 per couple be enough?

I seem to recall that circa $44,000 is the amount required for a single person hence my near pauperization (sic) on $36,000 pa!

I jest  I own my own home and have no debts.  I do sometimes struggle with sudden expenses eg $1,000 for my cat at the vet but I have a bit of money in super which I should be using. When I sell my home in the UK I'll have some more money to splurge.

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9 minutes ago, MARYROSE02 said:

I seem to recall that circa $44,000 is the amount required for a single person hence my near pauperization (sic) on $36,000 pa!

I jest  I own my own home and have no debts.  I do sometimes struggle with sudden expenses eg $1,000 for my cat at the vet but I have a bit of money in super which I should be using. When I sell my home in the UK I'll have some more money to splurge.

I could live well spending $44,000 per year.

But I think those quoted figures allow for irregular large payments which don't happen every year. Like buy a new car every five years, or redo the kitchen and bathroom once during your retirement etc.

So I think you need to sock away $10K into a savings account for any of those quoted yearly amounts. Don't think you should spend it all every year.

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I want it all, and I want it now.

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An emergency fund of 6 months of expenses is a good idea if you can do it.

You never what can happen. Need to fix the roof, Car dies etc. Hot water bursts. Emergencies can cost thousands and need to be budgetted for.

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I want it all, and I want it now.

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7 hours ago, Parley said:

I could live well spending $44,000 per year.

But I think those quoted figures allow for irregular large payments which don't happen every year. Like buy a new car every five years, or redo the kitchen and bathroom once during your retirement etc.

So I think you need to sock away $10K into a savings account for any of those quoted yearly amounts. Don't think you should spend it all every year.

During lockdown I've given up drinking (11 weeks so far) and that's reduced my spending big time. I'm living on my threw pensions (2 UK  1 OZ) and have not touched my UK home rental.

You could be right about those big ticket items and my flat could do with a total makeover. I've had the mindset I think that my super is different to my savings but I think that's wrong? I'm at the age where I  can and should treat it as ready cash. I mean I don't HAVE to treat it as income to be doled out monthly with my other pensions?

My mum and dad came out in 1981 and bought a house which I think they paid cash for and I remember my dad doing the same with a new car in 1997 back in England.

Actually I did use cash and shares (sold) to buy my house outright in England now I come to think of it. 

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On 11/09/2021 at 03:31, Canada2Australia said:

My dream retirement would be to spend six months here and six months in Canada. That would make me the happiest clam in the world. Unfortunately, economics come into play and seemingly dash my hopes of that ever happening......unless I win the lottery or stumble upon an insanely large inheritance from a relative I've clearly never met!

I'd love to visit Canada. One city which I want to find out more about is Vancouver, it seems to really polarise opinions (much like Perth), it looks beautiful, but I've read online that it's incredibly insular and unfriendly. 

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58 minutes ago, Red Rose said:

I'd love to visit Canada. One city which I want to find out more about is Vancouver, it seems to really polarise opinions (much like Perth), it looks beautiful, but I've read online that it's incredibly insular and unfriendly. 

They've got bears in Canada.

I have a phobia of bears 

 

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Nearly there! Don't drop the ball now guys! Vaccines are weeks away. Stay safe!

 

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6 hours ago, Red Rose said:

I'd love to visit Canada. One city which I want to find out more about is Vancouver, it seems to really polarise opinions (much like Perth), it looks beautiful, but I've read online that it's incredibly insular and unfriendly. 

I follow this couple who retired to Canada from the UK. https://www.youtube.com/user/markmaker3

Interesting to hear from an expat couple in a different country.

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I want it all, and I want it now.

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7 hours ago, Red Rose said:

I'd love to visit Canada. One city which I want to find out more about is Vancouver, it seems to really polarise opinions (much like Perth), it looks beautiful, but I've read online that it's incredibly insular and unfriendly. 

It has it's nice parts, nice park, good views, people seemed friendly, good pubs and eating out. Hotels were horrendously expensive and there's a part of the City, just beyond gas town, that is like Dante's inferno. Cops seem to have given up on it, people openly doing drugs, begging, smoking crack pipes. As long as you keep away from that bit, you should be OK.

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6 hours ago, newjez said:

They've got bears in Canada.

I have a phobia of bears 

 

My son sent us a lovely video when he'd not been in Whistler long. They were playing golf and he panned around to show us the brilliant mountain view, then he panned to the other side of the fairway and there'd moma bear with 3 cubs, not 20m away.

Brown bears mind you, it's grizzly's you have to be scared of. 

We went on a long bike ride when  we holidayed there and went up a steep hill. Me and the youngest were fine but my wife was struggling a bit. Said to the youngster keep going and we'll wait at the top. It was a bit out in the mountains and surrounded by forest but I thought there's nowhere else to go, she has to make it.

When she eventually got to the top she was livid. Me and the youngster were looking at a sign that said caution grizzly bears in the area😅. Took her a while to calm down but she saw the funny side after a while.

Loved Whistler.

Edited by Paul1Perth
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8 minutes ago, Paul1Perth said:

It has it's nice parts, nice park, good views, people seemed friendly, good pubs and eating out. Hotels were horrendously expensive and there's a part of the City, just beyond gas town, that is like Dante's inferno. Cops seem to have given up on it, people openly doing drugs, begging, smoking crack pipes. As long as you keep away from that bit, you should be OK.

It's a nice enough place but my favourite places in Canada are Montreal and Quebec city.  Beautiful cities.  I could easily live there and I'm not a city person.

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On 14/09/2021 at 09:42, MARYROSE02 said:

I seem to recall that circa $44,000 is the amount required for a single person hence my near pauperization (sic) on $36,000 pa!

I jest  I own my own home and have no debts. 

....and you're about to get a lump sum of cash when you sell your place in the UK.  Are you including a pension from your superannuation in that amount?  You sound like you're rolling in it, actually.

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Scot by birth, emigrated 1985 | Aussie husband applied UK spouse visa Jan 2015, granted March 2015, moved to UK May 2015 | Returned to Oz June 2016

"The stranger who comes home does not make himself at home but makes home itself strange." -- Rainer Maria Rilke

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9 hours ago, Paul1Perth said:

It has it's nice parts, nice park, good views, people seemed friendly, good pubs and eating out. Hotels were horrendously expensive and there's a part of the City, just beyond gas town, that is like Dante's inferno. Cops seem to have given up on it, people openly doing drugs, begging, smoking crack pipes. As long as you keep away from that bit, you should be OK.

Yeah I've heard about that....I think you may be referring to this:

www.theglobeandmail.com/amp/canada/article-what-i-saw-in-a-day-on-the-downtown-eastside-shocked-me/

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On 11/09/2021 at 12:31, Canada2Australia said:

My dream retirement would be to spend six months here and six months in Canada. That would make me the happiest clam in the world. Unfortunately, economics come into play and seemingly dash my hopes of that ever happening......unless I win the lottery or stumble upon an insanely large inheritance from a relative I've clearly never met!

I think a lot of expats have this dream, but the reality is unsustainable financially and ultimately more trouble than it's worth. Unless you're minted, you'd need to be able to rent out each property for 6 months, and that isn't as easy as it sounds because most tenants want to stay longer than that. Unless you were renting your place out fully-furnished, you would also need to put all your belongings in storage every 6 months, and get them out again, which would be a right faff. Then there's the tax issue, as you could find yourself being taxed at higher rates by both countries. Quite hard to maintain tax residency when your out of the country for that length of time. You'd have a primary residence in each country, so both countries could claim that you were normally tax resident there. It could become quite complicated - and expensive.

If I was ever thinking about returning to the UK, I'd probably only go back for 3 months (June to September) and hire/buy a campervan. You'd probably see/do a lot more in your retirement years than if you returned to a single place of residence.

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22 hours ago, Marisawright said:

....and you're about to get a lump sum of cash when you sell your place in the UK.  Are you including a pension from your superannuation in that amount?  You sound like you're rolling in it, actually.

I was thinking that too, @Marisawright but didn't want to come across the wrong way! 😄 

I believe you own a property in Sydney and one in the south-east UK @MARYROSE02? Wouldn't it be better to sell your Sydney home off first and live in the UK one for a year or so, then sell that and return to Australia, to avoid a huge capital gains tax bill? 🤔

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