Retiring in Australia or New Zealand: Low Cost of Living and Government Support

Retiring in New Zealand or Australia can be a dream for many, but the high cost of living poses a challenge. While New Zealand has a high cost of living, both countries offer unique opportunities for retirees, such as government support and special considerations for expatriates.

New Zealand: High Cost of Living and Government Super

Settling in New Zealand as an expatriate or retiree requires thorough planning, especially if you're not expecting a pension from your home country. The cost of living is significantly higher than the UK or other countries in the Southern Hemisphere. To retire comfortably, you will need substantial savings, as government super alone will not be enough to sustain your lifestyle.

While New Zealand's social welfare system is robust, it requires certain prerequisites. For instance, to receive government super, you must be 65 years old. Additionally, living comfortably may require annual income of at least $40,000 NZD, which is considerably higher than the UK's standard of living.

Personal Experience: Moving to New Zealand as a Retiree

I moved to New Zealand after retiring from the UK, where I was still working part-time as a freelance Learning Support expert. My wife, a New Zealand citizen, was offered a job back in her home country, and we both had the potential to contribute to a comfortable retirement. However, the process to gain permanent residency was not straightforward.

The challenges included proving the authenticity of our marriage, which required wedding photographs to be scrutinized for genuine smiles. Medical reports, which turned out to include a diagnosis of Type 2 Diabetes, were another hurdle. I had to pay for reports from an endocrinologist and cardiologist, making the transition both expensive and cumbersome.

Navigating the Lockdown Years

My relocation to New Zealand coincided with the early days of the global pandemic. My wife, who works at a drug and alcohol rehab center, had to continue her work during lockdowns. As a music producer and mixer, I was able to do some work from home, but the initial periods were challenging for both of us.

While the New Zealand government, under Jacinda Ardern's leadership, handled the COVID-19 situation effectively, the early months of the lockdown were tough. When the first lockdown ended, I began some voluntary work at the rehab, assisting residents with literacy issues. This turned into a valuable opportunity when I was later offered paid work as a contractor. Now, I work 5 to 10 hours per week and find this work both interesting and a way to supplement my pension income.

It’s important to consider that the cost of living here is not low, at least from my perspective. Living in the UK, where the cost of living is generally lower, means that adjustments must be made when estimating expenses in New Zealand. Housing, food, and healthcare all contribute to the higher costs, making it essential to have a robust financial plan in place before making such a move.

While the high cost of living in New Zealand and Australia can be daunting, both countries offer numerous opportunities for retirees with a bit of planning and foresight. From government support to unique job opportunities, the key is to understand the local market and prepare accordingly.