Claiming a pension and moving overseas
Many of us dream about moving overseas in retirement, the ultimate sea change. However, if we’re not careful things can get complicated in terms of pension entitlements.
We’re going to look at the rules for claiming the age pension when living overseas or travelling for an extended period. By understanding the limitations and your requirements, you can be sure you won’t get a nasty surprise when checking your account.
Am I still going to receive my age pension?
As the Department of Human Services states, yes, in most cases you will generally still receive the Age Pension for the time you’re outside Australia, whether temporary or permanent, but the amount you receive will change depending on circumstances.
If you have been living overseas, returned to live in Australia in the last two years and started receiving the Age Pension in that period you cannot be paid outside Australia until those two years have passed. This also applies if you were receiving entitlements from a country that has joint international social security agreements with Australia.
When do you tell the Department of Human Services about your travel?
Generally speaking, it’s recommended that you advise the Department of Human Services if you plan to leave Australia to live in another country permanently or are planning to be away for a period greater than six weeks. Also, if you have been paid under an international social security agreement or returned to Australia in the last two years as mentioned above.
How will my rate change?
It varies greatly depending on circumstances, but generally speaking:
- You age pension rate will not change if you travel for less than six weeks.
- If you are outside Australia for more than six weeks you will be paid and an outside Australia rate, which has your pension supplement reduced and energy supplement stopped.
- After 26 weeks your rate will depend on how long you have lived in Australia as an Australian resident between ages 16 and the age pension age. You generally need to have lived in Australia as a resident for 35 years to get the full means tested age pension rate past 26 weeks overseas. Any less and you will be given a proportional rate.
For more information, visit the Department of Human Services website.
Have you ever considered moving overseas permanently? If you could move overseas and money wasn’t an issue, where would you go?
Share your thoughts in the comments.
This article is for general information only. You should seek formal financial advice on your specific circumstances.
Related links:
What are additional sources of income in retirement?
What’s next for super under a Turnbull government?
There’s a problem with my super – where can I get help?