Retiring in Bali and getting the pension

Q:

Q: I WAS told I cannot claim the aged pension If I move to Bali to live, unless I have been first claiming the pension for at least one year in Australia. Is this true?

Our expert is the Centrelink International Services division.

A: You can generally only claim an Age Pension if you are living in and physically present in Australia or a country with which Australia has a Social Security Agreement (click here to find out which these are).

If you claim and are paid an Age Pension in Australia, whether you can continue to be paid, and for how long if you leave Australia depends on many different factors. These include the country to which you are travelling, how long you are going for, whether you have only recently returned to live in Australia and how long you have lived here during your working life.

Because of all the different rules which may affect the decision, it is very important that you tell Centrelink as early as possible about your intended departure.

Unless you have returned to live in Australia in the last two years after living overseas, you can generally get Age Pension for the total period of absence, however, after 26 weeks your rate may change.

If you are still outside Australia after 26 weeks, your normal rate will generally be calculated as a proportion dependent on the amount of time you have spent in Australia between the ages of 16 and pension age. Centrelink will let you know what proportion is to be used when you advise of your departure.

You need to have lived in Australia for 25 years between these ages in order to receive your full rate. You cannot receive add-ons, such as Pharmaceutical Allowance or Rent Assistance, at all if you leave Australia permanently.

I suggest you contact Centrelink's International Services on 13 1673 to discuss your situation further.