Age Pension Overseas: What Happens to Your Payment When You Move Abroad

Age Pension overseas is one of the first things Australians ask me about when they think of retiring abroad, and the answer is not a simple yes or no. According to Services Australia, you can keep receiving the Age Pension while you live overseas, and you do not have to remain an Australian resident to do so. But the rate you receive can change, depending on how long you have lived in Australia, and some extras stop altogether when you move permanently. Those differences can decide whether a move is affordable. This guide explains the main rules in plain English, what changes after 26 weeks away, what happens if you leave permanently, and what to check before you book a one-way flight. I am not a financial adviser, so confirm your own position with Services Australia before you commit to anything.

Can You Keep the Age Pension Overseas?

Often, yes. Services Australia says Age Pension customers who go overseas may keep their eligibility indefinitely, and the reason for leaving does not matter. Some people cannot take their pension with them, including those affected by the former resident rules and those who qualify only through a refugee visa residence exemption. If you are not sure which group you are in, ask before you go.

The word that matters is the rate. Keeping the Age Pension overseas is not the same as keeping the same amount. The rules change after 26 weeks, and they change again if you move permanently.

What Happens to the Age Pension Overseas After 26 Weeks?

For the first 26 weeks, the base rate usually stays the same, assuming you still meet the rules. After that, according to Services Australia, the basic pension is paid at a proportional rate based on your Australian working life residence. A column on the Services Australia website by its chief executive, Hank Jongen, explains it this way: if you have lived in Australia for 35 years or more, your rate generally stays the same, and if you have lived here for less than 35 years, your payment may be reduced. His example is 20 years of residence, which may mean 20/35ths of the normal rate after 26 weeks overseas.

There are exceptions. Services Australia notes that the proportional rate does not apply to people travelling to New Zealand, to customers paid under an international agreement, and to those protected by older rules. Someone with no working life residence has a nil proportional rate, so payment stops 26 weeks after departure.

What Changes If You Move Permanently?

If you live overseas permanently, Services Australia says only the basic pension is paid. Add-ons such as Rent Assistance and the Pension Supplement stop from the date you leave. For some retirees that is the difference between a comfortable budget and a tight one, so price it in before you pick a country.

Services Australia also says that customers who are overseas for more than 12 months can have payments sent to an overseas bank account, and that you can report travel through your Centrelink online account. Tell them before you go, not after.

What Else Should You Check Before Using Your Age Pension Overseas?

• Ask Services Australia how your rate would change, using your own residence history.
• Build a monthly budget in the country’s currency, including health cover, housing and flights home.
• Check your health cover, because Medicare generally does not cover treatment overseas.
• Confirm your visa or retirement visa route with a registered specialist before you rely on a property purchase.
• Speak to a licensed adviser about your super and tax, which are separate from the Age Pension.
• Read my wider guide to moving overseas from Australia, which covers the twelve areas to decide first.

How Can I Help With the Whole Move?

My job is to make sure you do not make an expensive mistake in the wrong order. Talk To Me First is my independent advisory service for people in Australia, New Zealand, the UK, the USA and Canada who are thinking of moving, retiring or investing overseas. It exists to help you make an informed decision before you commit money, sign a lease or sell up at home. I do not mind where you move. I care whether it is right for you.

I have moved countries five times, so I have been in your shoes. I have visited 92 countries and spent more than 30 years in international property, and I work with a network of more than 500 affiliate agents in 25 countries. I act as your strategist and coordinator. Regulated advice on tax, pensions, visas and legal matters comes from licensed specialists whom I introduce you to. I do not give that advice myself, and I will say so.

You choose the pace, from doing it yourself to having it done for you:

• The Talk To Me First Guide, a low-cost starting point if you want to plan the move yourself.
• A personal consultation, one hour with me on your situation.
• Your Overseas Move Plan, a written plan for one country if you prefer to do the move yourself.
• The Full Mentoring Package, with me beside you through the move, if you want it done for you.
• Property help to buy or rent in your new country, or to sell or rent out the home you leave, through Rick Flay International Real Estate. I will always say so openly when a property is involved.
• Introductions to licensed specialists in migration, legal, tax, foreign exchange, insurance and healthcare.

Tell me your budget, whether you want to rent or buy, your timing and which places you are considering. Talk to me first, and we will work out the right order of steps before you commit to anything. Get in touch or message me on WhatsApp on +61 404 497 335.

Frequently Asked Questions

Can I get the Age Pension if I live overseas?

Often yes. Services Australia says Age Pension customers who go overseas may keep their eligibility indefinitely and do not need to remain Australian residents. Some people cannot take it overseas, so check your own situation.

Does the Age Pension stop after 26 weeks overseas?

Not usually. After 26 weeks the basic pension continues at a proportional rate based on your Australian working life residence, unless you have the maximum residence or an exception applies. Someone with no working life residence has payments stop at 26 weeks.

What stops if I move overseas permanently?

Services Australia says only the basic pension is paid when you live overseas permanently, and add-ons such as Rent Assistance and the Pension Supplement stop from the date you leave.

Do I need to tell Services Australia I am leaving?

Yes. Services Australia says you can report travel through your Centrelink online account. Tell them before you go so that your payments and any overseas bank details are set up correctly.

Is the Age Pension enough to retire overseas?

It depends on the country, your rate and your costs. I cannot say without your numbers, so build a monthly budget for the exact area before you decide.

Can you help with pension advice?

I am not a financial adviser. Through Talk To Me First I introduce you to licensed specialists for pension, super and tax questions, and I help you plan the move.

About the author. Rick Flay has more than 30 years of experience in real estate, with over 1,000 properties sold and rented across international markets. Rick Flay International Real Estate helps clients buy, sell and relocate through an international affiliate network of 500+ agents in 20+ countries.

Property, tax, health and immigration rules change, and the right decision depends on your circumstances. Nothing in this article is financial, legal, tax or immigration advice. Take independent professional advice before buying or moving.

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