Can I retire overseas and still receive an Australian Age Pension?

Maryanne wants to know if she can retire in the UK and still receive an Age Pension.

How does an overseas pension work?

Maryanne dreams of retiring in the UK and wants to know if she will still be eligible for an Australian Age Pension. In Centrelink Q&A, we explain how an overseas pension works.

Q. Maryanne
I currently receive the Disability Allowance and will be eligible for the Aged Pension when I turn 66 (in just over three years’ time). It is my dream to move to the UK to retire. I have made inquiries with Centrelink and I believe my pension can be paid while I live overseas.

My question is: when I apply for the Aged Pension, do I need to reside in Australia for the two years before I move? I have dual citizenship as my father was born in the UK; however, I have never lived there.

A. The good news is that the two-year residency rule applies only to those who have lived overseas and returned to Australia to claim an Age Pension.

You will be able to move to the UK and have your Age Pension paid at an Outside Australia rate. You will be paid every four weeks. From 1 January, 2018, your Pension Supplement will be stopped if you are outside Australia for more than six weeks.

All content on YourLifeChoices website is of a general nature and has been prepared without taking into account your objectives, financial situation or needs. It has been prepared with due care but no guarantees are provided for ongoing accuracy or relevance. Before making a decision based on this information, you should consider its appropriateness in regard to your own circumstances. You should seek professional advice from a Centrelink Financial Information Services officer, financial planner, lawyer or tax agent in relation to any aspects that affect your financial and legal circumstances.

(correction: pension supplements cease after six weeks) 

If you have a Centrelink question, please send it to newsletters@yourlifechoices.com.au and we’ll do our best to answer it for you.

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    COMMENTS

    To make a comment, please register or login
    inextratime
    11th Dec 2017
    10:50am
    What is an outside Australia rate ? Also when you mention the pension supplement does that mean rent and power allowances ?

    Clarification please.
    Aussie
    11th Dec 2017
    4:13pm
    Yes that what it means ...you will get only the basic pension ... if you are on full pension and been in AU for over 30???++ something years you will get only $814 a fortnight ......
    Dave H
    11th Dec 2017
    11:12am
    If all this allowed how come if you go on holidays and are out of the country for more than 6 week allowance are cut off then
    Aussie
    11th Dec 2017
    4:16pm
    Easy save save ...eat shit for a while like spaghetti everyday .... live with your kids on a single bed in the store room ....then you can ....for example round trip to almost any country in Asia will cost about 600 average return ..... accommodation and good food is cheap and with 800 x fortnight you will have a great living ....
    Charlie
    11th Dec 2017
    12:11pm
    We would all love to get our age pension and live somewhere the lifestyle was good and the cost of living was only half as much as Australia.
    There must be a hitch somewhere, maybe the outside Australia rate.
    Aussie
    11th Dec 2017
    4:20pm
    No hitch ....check this

    http://www.xe.com/currencyconverter/

    then research cost of living in other countries here
    .....

    https://www.numbeo.com/cost-of-living/compare_cities.jsp?country1=Australia&city1=Sydney&country2=Indonesia&city2=Bali

    This will allow you to search in many countries ....have a look and you will be very very surprised how you can have a great living outside our beautiful country .....I have bee doing research for about 6 month now and looks very promising for my future with only $800 x fortnight
    Aussie
    11th Dec 2017
    4:22pm
    Also keep your money in Australia and only withdraw in ATM ...try Citibank they have a no charges account for pensioners even overseas and you only pay the fee for the local banks that is nothing
    Anonymous
    15th Jan 2018
    10:48am
    Never forget that the countries in Asia have stringent rules about
    who is allowed to retire in their jurisdiction. Like a comprehensive
    health insurance (I priced it at about $5000 for a couple per annum)
    as well as a certain amount available for living expenses. Bali
    is asking for $US1500 per month per person, plus you will have to
    employ a local (cook or gardener etc). Just check the internet about
    retirement visas in the place of your choice. Things have tightened up considerably in the last few years. The full pension in Australia
    is no longer enough, although pensions in European countries would be sufficient.
    Aussie
    15th Jan 2018
    3:59pm
    Cowboy Jim .... Agreed the health insurance is very expensive but depends what country you go .... the medical is so cheap that you do not need insurance just keep some money for emergencies.... a friend that live in Thailand got a big bike accident and nearly die he have 6 pins on his column and cost him about AU$10,ooo for everything Hospital (Private room), Doctor, anesthesia and all the rest so really depends where you go and what city because everything varies from city to city

    Yes insurance is very expensive but may not be necessary if you do your research and visit the countries and stay for a few month to find out the reality ..... taking notes from the internet is not good because you only get the standard info but most of the info may not be accurate so research research research is the answer for any kind of retirement move ..... is a must.

    Also as foreign person you need your passport and all papers in order and medical is provided even if you are a tourist ..... If you get the resident visa is different and you get the service very quick and acceptable all you need to do is register on the hospital and your local medical centre then service is all standard same as the local people .... so really a lot of research before go anywhere out of Australia is recommended
    Aussie
    11th Dec 2017
    4:33pm
    Note:
    Please advice where has been officially published that Pension Supplement will stop after 1 Jan 2018 if outside Australia ????? I can not find any place about this info.

    The Pension supplement is reduced to the minimum of $23.10 after 6 weeks and this has been active for a long long time now

    Please someone advise where has been officially published and legislated of the total abolishment of Pension Supplement after 6 weeks in O/S.

    Please
    Elizzy
    11th Dec 2017
    6:26pm
    I sincerely hope that Maryanne has thoroughly researched the economic feasibility of moving to the UK as a pensioner including health costs, insurance, travel costs, utility costs especially heating and more. Hope she has reasonable assets or a free roof for life in the UK. Rate of overseas pension depends on how many years you have lived in Australia. See Centrelink site for the formula.
    Anonymous
    15th Jan 2018
    10:58am
    Well stated Elizzy. The UK is rather expensive and at the moment the Aussie dollar is quite good which might change rapidly again but the pension amount here would remain the same, giving Maryanne less
    pounds to spend in England. I have spent some time in the UK and
    Ireland last year and the Aussie pension would not be near enough unless you get free housing.
    Elizzy
    11th Dec 2017
    6:45pm
    Also, think about whether you would pay for an international house move or take nothing and buy everything new. If you are still employed, use your long service leave, maybe at double time and half pay if your employer allows that option, to live in your country of choice for a while.


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