Peter: rent down from $1,120 to $400 a month, with health cover the catch

A retiree looks at photos of Phuket's Big Buddha, Phuket Old Town shophouses and Kata beach in Thailand

Checked 20 October 2026, re-checked monthlyBy the Retirees Abroad teamGeneral information only, how we check

The story in short

Peter, an Age Pensioner who once spent half of each fortnight's payment on rent in Victoria's Yarra Valley, now lives on Phuket. His rent fell from $1,120 to $400 a month and he saves a little. The drawback he names himself is that health insurance in Thailand is expensive, which leaves him exposed if something serious happens.

Based on reporting by ABC News: Australian pensioners finding rent and cost-of-living relief in moving overseas (17 June 2026). This story is not affiliated with Retirees Abroad. We share it as one example of how an Australian went about it. Figures are theirs, as reported at the time.

The facts, as reported

Who
Peter and partner
From
Yarra Valley, Victoria
Where
Phuket, Thailand
How
Full move
The house
Rented a one-room place in the Yarra Valley; now pays rent on a two-bedroom house on Phuket
Income
Age Pension
A month, as reported
Rent $400 a month, down from $1,120 in Australia, as reported in June 2026
How it turned out
Staying, and says he is happy there

How it came about

A retired man stands outside a small rented unit with vineyard hills behind, for renting on the pension in Victoria
Illustration: renting in regional Victoria.

Peter was renting in the Yarra Valley in regional Victoria on the Age Pension. Five years before the story ran, he told the ABC, about half of each fortnight’s payment went on rent, and the rest went on bills and a shrinking food budget. He has since moved to Phuket with his partner and a dog, and lives there on a Thai retirement visa. The ABC explains that this visa lets people over 50 live in Thailand but not work.

What it costs them

A small paper house, a key and plain banknotes, for lower rent on a two-bedroom house in Phuket
Illustration: a two-bedroom house for less.

Rent is the big change:

In Australia On Phuket
Rent, a month $1,120 (a one-room place) $400 (a two-bedroom, air-conditioned house)
Getting around $10 just to start a taxi ride $2 to go anywhere on the island

He no longer gets Rent Assistance, because he lives overseas, but he says he is making ends meet and even saving a small amount. Our Thailand page gives our own estimate of what a month costs there.

What went well

A retired man relaxes at a cafe table with a coffee, for affording small outings again on Phuket
Illustration: a coffee out again.

He gets out again. A coffee out or a trip to another part of the island was beyond him before, and now he can afford it. Asked about life now, he told the ABC: “I’m happy here.”

What was hard

A blank health insurance card on a folder with an umbrella, for the cost of health cover when living in Phuket
Illustration: health cover, the one catch.

Peter says the one drawback is health insurance, which is expensive in Thailand. He knows a serious accident would leave him in real trouble. He also told the ABC that if he went back to Australia, he would have nowhere to live.

What has changed since

  • Pension Supplement (from 20 September 2026). Services Australia and the Department of Social Services say that from 20 September 2026, pensioners who live overseas for good no longer get any Pension Supplement. Before then, they kept a smaller basic amount. Our guide to living overseas on the Age Pension sets out the current numbers.
  • Rent Assistance. Services Australia says that if you leave Australia to live in another country, Rent Assistance stops when you depart. The article already notes this.
  • Visa-free entry to Thailand. VisasNews reported, citing Thailand’s Royal Gazette, that Australians arriving from 15 September 2026 get 30 days visa-free, down from 60. Smartraveller says you may only be allowed 2 visa-free entries each calendar year without a justifiable reason; Thai consular pages say entries over land borders under the visa exemption are limited to 2 a calendar year. The retirement visa itself is unchanged. The shorter stay matters if you planned to arrive visa-free and sort things out later. Our Thailand retirement visa guide covers the longer-stay options.

What to take from it

  • Peter’s story is about rent more than anything else. For a renter, housing can decide the whole budget. Our page on retiring overseas when you rent covers what is different for you.
  • Leaving for good changes the pension. From the day you go, the sums have to use the rate paid outside Australia. Our guide to moving overseas for good explains what changes the day you leave.
  • Peter names health insurance as the drawback. Two things to find out before you go are what cover you can get at your age, and what a hospital stay would cost without it. Smartraveller says Thai hospitals need a deposit or confirmed insurance before they admit you. Our guide to international health insurance by age covers age limits and what to ask.
  • Peter says he would have nowhere to live if he came back. If coming home would be hard for you too, it’s better to know that early. Our guide to coming home: your pension and Medicare covers the practical side.

The rules their story touches

  • Moving overseas for goodMoving overseas permanently on the Age Pension: from the day you leave it is base rate only, A$29,520.40 a year single. What stops, and the 2-year rule.
  • Living on the pension overseasLiving overseas on the Age Pension: what it pays a month from 20 September 2026, set against our cost estimates for Penang, Da Nang, Chiang Mai and more.
  • Health insurance by ageInternational health insurance for over 70s living overseas: why age matters, the types of cover, and the questions to ask a broker. Checked October 2026.
  • Thailand retirement visaThailand retirement visa rules for Australians: the new 30-day visa-free stay and the Non-O, Non-O-A, O-X and LTR visas, with age 50, money and insurance rules.

The place

  • ThailandRetirement visas start at 50 and day-to-day costs are low. The big cities have private hospitals.

Sources

General information only, not financial, tax, legal, migration or insurance advice. Rules change: check the official source before you act, and talk to a licensed professional about your own situation.

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