Expert Retirement Planning

Australia is the most desirable destination for retirees in the world, according to at least one survey. And with its endless beaches, cosmopolitan cities and friendly people, it's not hard to see why. But there are some hurdles to overcome if you want to retire down under. In this article we'll look at what's required to retire in Australia.

Australian Retirement Visa Issues

You'll need significant resources if you want to get one of Australia's Investor Retirement visas. You need to be over 55 years of age and have no dependents, other than a spouse, who can be any age.

To live in one of Australia's high-growth urban areas, you'll need to take AUS$750,000 in assets that you've already held for two years and invest this. You'll also need an income of at least AUS$65,000 a year on top of that. If you decide live in a low-growth, regional area, those figures come down to AUS$500,000 and AUS$50,000 respectively.

You and your spouse will also need to purchase health insurance for the duration of your planned stay in Australia and present evidence of this when making the visa application. You will also need to be sponsored by an Australian state or territory.

The visa is valid for four years, after which time you can apply to have it renewed. But each visa renewal will set you back a tidy AUS$8700. The Investor Retirement visa also does not provide a path to permanent citizenship and you won't be entitled to health or pension benefits. But it does allow you to work for 20 hours each week to supplement your income.

If you're really serious about retiring permanently to Australia and you've still got some working years ahead of you, it might be a good idea to look for a job and migrate before retirement. In that case, you'll have a much better chance of securing permanent residency.

Tax and Living Costs

So you've overcome the extremely high bar of entry and snagged a four-year Investor Retirement visa. Now you need to consider tax issues. Australia has a tax treaty with the US and the UK, which means that you won't be double taxed on any income that you earn. But tax is relatively high in Australia so the government will be taking a fair slice of your income.

Living costs tend to be comparable to the United States. In regional areas goods and services tend to be much cheaper than in major cities such as Sydney. Buying property out of big cities is significantly cheaper - a sustained boom in housing prices several years ago pushed the Sydney and Melbourne house prices through the roof. But on the positive side, there are few restrictions on foreign nationals owning property in Australia. And bargains are still to be found at pleasant towns along the coastline.

Health Care

If you're on an Investor Retirement visa, you'll need health insurance as part of your visa requirements. Health care is expensive in Australia, but it's world class, and you won't struggle to access top quality doctors and dentists. If you manage to qualify as a resident somehow (for instance, by working in the country before retirement) you can also access Medicare, Australia's government-funded national healthcare system. But while this is a perfectly good service, private health insurance is still a good idea - there are tax implications for those who earn a good income yet still utilise the publicly funded system.

Where to Live?

Sydney, Brisbane and Melbourne are all wonderful options if you can afford it. All offer a cosmopolitan lifestyle with first-class restaurants and cultural institutions.  Sydney's beauty is famous worldwide and Melbourne has a more bohemian atmosphere that appeals to those with a European sensibility. But if you want to get away from the hustle and bustle, there's no shortage of choices. Queensland's north coast has numerous beautiful spots where houses can be snagged at a reasonable price. The NSW mid-north coast and south coast are also good places to hunt for a beach shack. And the Blue Mountains not far from Sydney offer picturesque villages and fabulous scenery.