You’ve made up your mind, you’re ready to move overseas, and enjoy a wonderful new life in tropical South East Asia. Its a great feeling. Excitement, Freedom, Adventure, and so much more relaxing, when you know that your money goes so much further in Asia than it does in Australia. But before you make that dream move, just stop for a moment to make sure you’ve got everything in order. And if you’re not certain, then we strongly suggest you seek advice. Correcting mistakes after you’ve left Australia can not only be costly, it can be incredibly stressful. At Retire to Asia our role is to remove uncertainty, and eliminate unnecessary stress. Here’s a list of 8 Key Financial Issues to consider BEFORE you move abroad;
8 Key Financial Issues to Consider
- Superannuation. High Fees and insurance premiums may run down your balance prematurely. The asset allocation will drive the level of long term returns. How much should you draw as a pension? Can you or should you ‘top up’ your super? Having a clear understanding of your super is crucial to ensure it lasts the distance.
- Centrelink. Know your entitlements, and how each payment is treated when you live abroad. This includes your future eligibility, as there may be different rules applied once you do live overseas.
- Be in touch with your financial position. This was a topic in a recent blog of ours. Worrying about a diminishing cash balance is an awful feeling, and a dreadful way to spend your retirement. Know where you are with your finances, manage your expectations, and your life will so much easier.
- Should you remain a tax resident of Australia? The choice is yours. There are benefits to remaining a tax resident, as there are to becoming a non-resident. The key is to ensure your tax planning is in order before you leave Australia, and all your documentation is in order. If any doubt, seek advice.
- Healthcare. An essential item. As we age, healthcare costs inevitably increase. And your health may well play a big part in where you decide to live overseas, and whether you elect to take out International Private Health Cover.
- The Financial requirements of your Retirement Visa. Each country has its own rules and financial requirements in order to qualify for a retirement visa. This needs to be taken into consideration when planning your move.
- Foreign Exchange. Receiving your income in one currency, and spending in another can at times create unexpected problems. Understand how to reduce the risk of unfavourable exchange rate movements.
- Do you have a ‘Self Managed Super Fund’? Make sure you seek advice to ensure your fund remains compliant. See more about SMSF’s in our ‘Financial’ section of the site.
