SEA an option for comfortable retirement

Retirees could find a comfortable retirement in moving to South East Asia if they are affected by the Age Pension assets test on 1 January, 2017, a financial services executive believes.

Connect Financial Services Brokers chief executive, Paul Tynan, said if a solution to the assets test did not appear on an approved product list, model portfolio, or planning software, professional indemnity restrictions would not allow planners to articulate other alternatives.

"Some estimates say the Age Pension assets test could have as many as 200,000 pensioners receive lower part pension payments and benefits from January next year and up to 100,000 lost pension payments altogether," Tynan said.

Related News:

"It's a frightening scenario and problem for retirees with some very tough decisions needed on how best to stretch restricted savings and income."

Tynan suggested that retirees and mature age Australians could live a better life in a South East Asian destination like Indonesia, Thailand, and Malaysia.

"This will not be the retirement solution for every retiree, however, Australians in growing numbers will explore this option in the years to come. Living in Malaysia will allow Australians to maintain current living standards in their later years as cost of living increases erode retirement nest eggs," he said.

"Health care and aged care in Malaysia is much more affordable when compared to Australia."

Tynan said retirees could keep their financial assets in Australia and access money through ATMs and banking institutions.

"…seniors are very fortunate with options many in overseas countries don't have and although I acknowledge that relocating offshore will not suit everyone because of family ties and unwillingness to adapt to a different culture and way of life — there are those with an adventurous spirit that will see this as an exciting financial chapter in their lives," he said.




Related Content

Lipscome joins Myer Family Company

Former National Australia Bank (NAB) and JP Morgan executive, Nicholas Lipscome has been appointed to head up the NSW team of the Myer Family Company ...more

Major banks face bipartisan pincer

The major banks have found themselves the subject of a political pincer with the Federal Opposition having upped the ante on the Government’s propos...more

Saxo’s bond-trading solution lowers execution time

Multi-asset trading specialist Saxo Capital Markets has seen a significant reduction in spreads and lower execution time for fixed income securities t...more

Author

Comments

Comments

This is already happening and I am seeing these countries advertising in Australia now.

I assume this would only be suitable for fully self funded retirees cos those that get some aged pension would lose it if living O/S for extended period. Am I right there ?
John

Oops. re prev question, I forgot to tick "replies to comment :-)
john

Add new comment