Understanding age pension entitlements for Australians retiring overseas
The assets and income test
While abroad, the assets and income test still applies, which may affect your pension rate. It’s essential to update Centrelink with changes in your circumstances, as variations in exchange rates, foreign assets, and overseas pensions can impact your Age Pension.
Waiting period after moving
If you decide to move overseas and have been abroad for over 26 weeks, your pension rate will be determined by the length of your Australian residency. If you return to Australia, there’s a waiting period of 2 years to regain the previous Age Pension rate based on living in Australia. This waiting period only applies if you have been overseas for more than 26 weeks.
Obligations and notifications
Always inform Centrelink before moving or travelling overseas. Your pension might be reduced or even cancelled if you fail to notify them within 28 days of your departure. Additionally, regularly check your obligations; rules can change, and staying updated is vital to avoid potential issues.
Healthcare considerations
While the Age Pension can be accessed overseas, the Australian Government health benefits might not be available. Consider health insurance in your chosen country and understand the local healthcare system.
Conclusion
While the prospect of retiring overseas holds charm and potential financial benefits, understanding the implications on your age pension is crucial. It’s always recommended to seek professional advice tailored to your individual circumstances. At Wealth Factory, we’re here to guide you, ensuring you make informed decisions for a peaceful and fulfilling retirement, wherever it may be.
