Retiring overseas before 67: the gap years before the Age Pension

Can I retire overseas before 67?

Yes. No Australian rule stops you living overseas in your late 50s or early 60s. Paying for it is the hard part. Services Australia says Age Pension age is 67, with no plans to change it, so the years before that come out of your own savings, super or other income.

We call these the gap years. You’re on your own money, without the pension or anything that comes with it. Our pages for ages 55 to 59 and ages 60 to 66 bring the rules for each stage together.

What happens at 60, 65 and 67?

Three ages matter, according to the ATO and Services Australia.

Age	What the rules say
60	Preservation age for anyone born from 1 July 1964. The ATO says you can generally withdraw your super once you reach preservation age and retire.
65	The ATO says you can withdraw your super at 65, even if you are still working.
67	Age Pension age. You also need to meet the residence rules and the income and assets tests.

How and when to draw on super is personal financial advice, so that’s one for a licensed financial adviser of your choice. We don’t give super advice.

What do people live on before the Age Pension?

Their own money. That can be savings, super once a condition of release is met, rent from a house in Australia, a defined benefit pension, or some work.

Two numbers are worth having before you go: your monthly costs overseas, and how many months the gap runs. For a couple in Penang we estimate about A$2,540 a month, rent included, before health insurance (October 2026). Six gap years there is 72 months of costs before any pension. Our guide to what retiring overseas really costs has the figures for 10 places and how we worked them out.

Can I claim the Age Pension from overseas when I turn 67?

Generally, no. Services Australia says that on the day you claim you must be living in Australia, physically in Australia, and an Australian resident. You generally also need 10 years of residence, with at least 5 of them in one go.

The exception is claiming under a social security agreement. Portugal, Spain and New Zealand have agreements with Australia. Thailand, Malaysia, Vietnam, Indonesia and the Philippines have none, so you can’t claim from any of them. Our guide on why you claim before you leave explains the timing.

Claiming at 67 usually means coming back. If you are in Asia when you reach 67, you would generally need to come back to live in Australia to claim. Once the pension is paid, it can keep paying overseas, with the 6, 12 and 26-week rules.

Why is health cover easier to arrange earlier?

Because insurers look at your age. Smartraveller says your age and health affect the cost and type of policy you need. It also points out that Medicare does not pay for treatment overseas, and neither do Australian private health funds.

• Ask whether a policy has an age limit for new members. Our guide to international health insurance by age covers what to ask.
• Smartraveller warns that policies can be costly, and that you may not be able to get insurance if you have pre-existing conditions.
• Some visas need insurance. Thailand’s Non-O-A retirement visa is one.
• Smartraveller says medical repatriation, being flown home for care, can cost hundreds of thousands of dollars.

Medicare still counts for visits home. According to Smartraveller, an Australian citizen who moves overseas can use Medicare for treatment in Australia for up to 5 years after they leave. After that, you re-enrol when you move back to live.

Questions to ask an insurance broker:

1. Can I renew this policy as I get older, or does it stop at a set age?
2. What does it cost now, and how has the price changed with age for existing members?
3. Does it cover flying me home to Australia?

If you’d like to talk the gap years through, book a free planning session on Zoom.

Which retirement visas can I get in my late 50s?

Several. Thailand’s retirement visas and the Philippines’ SRRV start at 50. Malaysia’s MM2H starts at 25. Portugal and Spain set no minimum age in the rules we found, only income rules. Our guide to retirement visas by age has the table.

An example, not real people

Lyn and Steve are 61 and 63 and have stopped work. They want 3 years in Chiang Mai, then decide.

Year	Lyn	Steve	What changes
Now	61	63	They live on their own money. Both over 50, so both meet Thailand’s retirement visa age.
In 3 years	64	66	Their trial is over. They decide to stay or come home.
In 4 years	65	67	Steve reaches Age Pension age. Thailand has no agreement, so he would need to be living in Australia on the day he claims.
In 6 years	67	69	Lyn reaches Age Pension age. The same claim rule applies.

At our estimate of about A$2,790 a month for a couple in Chiang Mai, the 4 years until Steve turns 67 come to about A$133,920 in living costs. Health insurance, flights and visa costs go on top. How they fund it is a question for their licensed financial adviser.

What this means for you depends on

• How many years you have until 67, and your partner’s age too.
• What money you can live on until then, and when you can access it.
• Whether you want to claim the Age Pension later, and from which country.
• Health insurance you can get now, and keep as you get older.
• The visa rules for your age in the country you choose.
• A home in Australia to come back to, if you keep one.