Chasing sunshine: older Australians moving overseas for a cheaper life

More older Australians are exploring retirement beyond our shores—drawn by rising housing costs, warmer climates, and the potential to stretch a pension or superannuation further. Popular destinations include Southeast Asia (Thailand, Malaysia, the Philippines), Southern Europe (Portugal, Spain), and nearby New Zealand.

The dream vs the reality
Many fall in love with the idea of living abroad—relaxed pace, sunshine, and affordability. But without fluency in the language, cultural familiarity, or a supportive social circle, that romanticized vision can quickly shift to loneliness and isolation.

Healthcare and coverage
Australia’s Medicare doesn’t cover routine healthcare overseas, and only provides limited support through Reciprocal Health Care Agreements (RHCA). These agreements—with 11 countries—offer subsidized, urgent public care when Australians visit those countries. You can find the full list of RHCA countries and details on the Services Australia website. Even then, coverage is limited to medically necessary, often urgent care—not long-term treatment or private services.

Repatriation and travel for care
If you require serious medical attention while abroad, an urgent medical repatriation—returning you to Australia on a medically equipped flight—can cost tens of thousands. Examples show air ambulance flights with medical staff and stretcher escort ranging from $25,000 to $50,000, plus the cost of multiple seats on a commercial flight when a stretcher flight isn’t required.

Once back in Australia and treated, returning to your foreign home can involve additional costs—though typically covered under travel insurance, these should be verified case by case (Compare the Market).

Repatriation of remains
In the worst-case scenario of a death overseas, repatriating a body to Australia can also run into thousands—depending on embalming, coffin, transport, and official documentation. Estimates for overseas repatriation often fall between AUD 7,000–12,000. Ashes are usually less expensive but still involve fees and handling.

Property, tax & residency: do your homework
It’s vital to fully research the legislation around foreigners purchasing property, including any restrictions or additional fees; understand your potential tax obligations; and clarify the steps needed to secure long-term visas or permanent residency in your country of choice.

• For Age Pension rules while overseas—including portability and reporting changes—refer to Services Australia’s resources: “Travel outside Australia rules for Age Pension” and “Payments while outside Australia“.
• For guidance on foreign property ownership, taxation, and residency requirements in popular destinations like Thailand, Portugal, or Spain, consult local legal and financial experts, and official government portals.

Benefits and potential pitfalls
The upside: lower everyday costs, mild climate, vibrant expat communities, and a refreshing change of pace. The downside: limited healthcare access, cultural and language barriers, loneliness, fluctuating currency, and complex legal or financial responsibilities.

Key takeaway
Before making a move, spend 3–6 months trialing your destination, sort out healthcare and insurance—especially for medical evacuations—research property, tax, and residency rules—and be realistic. Will you thrive in a new culture—or just survive?