Retiring overseas: Implications for your super and tax

Australians are inveterate travellers. They also have a keen understanding of destinations where the living is easy and where the Aussie dollar goes a long way. So when it comes time to retire, it’s not surprising that many dream about retiring overseas.

Accurate up-to-date figures for the number of Australian retirees living permanently overseas are difficult to come by. Anecdotally, numbers have been on the rise over the past decade, with a brief hiccup during the COVID-19 shutdowns.

Popular destinations

The most popular retiree destinations for Australians include New Zealand and Southern Europe (Italy, Greece, Spain and Portugal). Southeast Asian destinations, including Thailand, Malaysia, Vietnam, Bali and Cambodia, are also attractive because of their proximity and low cost of living.

Some countries are actively encouraging foreign retirees with special visas and other enticements. In our region, Malaysia’s My Second Home program offers renewable multi-entry visas tailored to retirees and digital nomads. Access to excellent healthcare, lower cost of living and a lively expat community are also major drawcards.

If you’re tempted by the prospect of living a relaxed lifestyle in an exotic location, make sure you look into some of the more mundane details before you leap.

Retiring overseas can have big implications for your super and tax, and it’s wise to seek detailed financial, super and tax advice from a financial planner and your accountant before you start to make plans to relocate.

Why do Australians want to retire overseas?

The main reasons for leaving Australia and retiring overseas include:

• Family ties – being closer to adult children and grandchildren, or to extended family in the country of birth
• A desire for travel, warmer weather or to live in a vibrant new culture
• The cheaper cost of living in some countries compared to Australia
• The cost of housing, inadequate social security payments and everyday living expenses in Australia.

If you’re considering making the move overseas and are doing research about the cost of living in different countries, Numbeo has detailed analysis. International Living compiles an annual ‘best places to retire’ list, which is US-centric but still a useful place to start your research.

The Association of Superannuation Funds of Australia (ASFA) Retirement Standard estimates a comfortable retirement lifestyle in Australia will cost a couple more than $75,000 a year and singles more than $53,000. For anyone who relies on the Age Pension, this is a stretch, especially if you don’t own your home and/or have a limited amount in super. From September 2025 to March 2026, the full Age Pension for a single person is $30,646, including supplements, and $46,202 for couples. So, it’s worth checking out what it may cost you to live in your preferred country.

Pros and cons of retiring overseas

The potential advantages (dependent on location) of retiring overseas include:

• Cheaper food and living expenses, for example, utilities and transport
• Cheaper property prices, renovation costs and rent
• Access to quality, affordable healthcare
• Increase in desirable lifestyle factors, for example, less stress, a vibrant local culture with plenty of options to eat, drink and socialise, and more disposable income.

Possible disadvantages include:

• Forfeiting Medicare benefits after five years
• Cost of health insurance cover
• Tax implications for remaining Australian assets
• Inability to transfer super overseas (except to New Zealand – see below)
• Leaving behind family and friends.

Can I access my super?

What happens to your super depends on your residency status – either Australian citizen/permanent resident, or a temporary resident – and whether you meet a condition of release.

If you are an Australian citizen or permanent resident, you will be able to access your super provided you meet the normal conditions of release, or you’re moving to New Zealand, which allows you to transfer your super to a KiwiSaver account. While super pensions and lump sums are generally tax free for retirees once you turn 60, some countries may levy tax on your income or ‘wealth’.

If you are a temporary resident, you may be eligible for a departing Australia superannuation payment (DASP), in which case you can contact your fund trustee to request the release of your super.

SMSFs also have strict compliance rules about trustee control being based in Australia, which may have a big impact on your fund.

Whether you are a member of an APRA-regulated super fund or an SMSF, we strongly recommend you seek independent financial advice before you consider retiring overseas.

Can I still get the Age Pension?