Retiring in South Africa

[SAman4Aus]

We live in Aus and hold dual citizenship (Aus and RSA). Now that we are in our 50's the retirement thing becomes more of a consideration. We visit South Africa yearly for family reasons and to be honest things are waaaay cheaper there than in good al Australia. Food and drinks are an average 3 to 4 times cheaper than here in Aus even for the same brand product. I know prices keep going up in RSA, but realistically they cant get too expensive as the majority of the population are on the bread line.

So we're thinking, if one retires in RSA debt free, one's AU$ savings would last 3 times longer than if you retire in Australia, Thinking of buying a cottage on the beach in the Cape and live with our heads in the sand to avoid any of the local politics etc. (Yes I know it will have to be in a secure estate, crime will still be there etc etc)

The one drawback I can think of is medical services. In Australia you don't really need private medical but in RSA it's not an option to be without it. Even then I don't think the private hospitals in RSA are as good as the Ausy public hospitals (but then I don't really know for sure). Also not sure if one can even get medical cover once you're in your 60's and I'm sure it wont be cheap.

I know it's early days yet, but what other considerations am I missing with my retirement planning in South Africa? Has anyone else given the idea a thought?

BTW we don't have kids in Australia which makes it easier to up and go.

[Bronwyn&Co]

Yes it's been flogged more than the Macarena (love that), but when it costs almost R1,300 to have my hair coloured and cut (at a very average salon) and I walk out with wet hair because it will cost another R500 to have it dried...no man ;-(

Edited April 24, 2014 by Bronwyn&Co

[RYLC]

Once we are earning dollars, the exchange rate is no longer valid for everyday life. It isn't a case of just doing a straight conversion once settled and living here as the standard of living is higher here. It will give new migrants the wrong impression about life here because once you earn dollars it all becomes relative. I found myself converting for about the first year and then it all just faded away. If it was just about money then there would be no need to move to Australia - plenty of people will tell you they had more money in RSA.

[Bronwyn&Co]

Once we are earning dollars, the exchange rate is no longer valid for everyday life. It isn't a case of just doing a straight conversion once settled and living here as the standard of living is higher here. It will give new migrants the wrong impression about life here because once you earn dollars it all becomes relative. I found myself converting for about the first year and then it all just faded away. If it was just about money then there would be no need to move to Australia - plenty of people will tell you they had more money in RSA.

Speak for yourself, we still earn in Rands. I admit it's unusual, but it does cost me over R1,300 to go to the hairdresser. Just saying as an example.

Anyway, the thread is about retiring in Australia, not working here ?

When you are living off a Rand income or pension believe me the exchange rate becomes very relevant to everyday life.

That's why there are South African pensioners aged over 70 working as cleaners in Australia right now.

Edited April 24, 2014 by Bronwyn&Co

[RYLC]

Then that would explain it...

From your timeline and other posts about having a business it would be natural to think that everything would be in dollars.

My in laws live here off rand so I know how it is. When I said "we" I was talking about the collective forum of working age and employed.

It's good to point out that your circumstances are unusual because I was pretty sure you weren't retired and couldn't quite understand some posts.

Edited April 25, 2014 by Crisplet

[Johnno]

Speak for yourself, we still earn in Rands. I admit it's unusual, but it does cost me over R1,300 to go to the hairdresser. Just saying as an example.

Anyway, the thread is about retiring in Australia, not working here

When you are living off a Rand income or pension believe me the exchange rate becomes very relevant to everyday life.

That's why there are South African pensioners aged over 70 working as cleaners in Australia right now.

The perfect set up would be to have the reverse......a nice AUD income whilst living in SA.

I remember when I lived in CT always coming across "pommies" who had retired in CT and it used to peeve me off. These okes with their pounds living the high life and still being cheapskates They would have had a house paid off in UK and a beach apartment in CT which they bought on their credit card (literally) and retired early, early enough to still enjoy life. I was told on numerous occasions the low cost of living, the lifestyle and the exchange rate made it a very favourable choice. When they hit old age they would simply head back to UK where the health care is free.

You could spot pommie retirees sitting on the local beach very relaxed and very tanned and then at dinner time you see them at the local restaurant enjoying a few glasses of wine and "bangers and mash" for the same price that they would spend on two beers in UK.

A few years ago I remember sitting next to a table of elderly pommies when in her English accent the one lady wanted to tell a joke to her friends. I could not help eve's dropping....so I did. "What's the difference between a tourist and a racist? About two hours" which was met with shrieks of laughter.....from me

Retiring in SA is not a bad option but choose your area and your plan carefully. Unless you are very well off and wealthy, I think trying to retire in a first world country on your SA savings would be a tall order. I know of other SA parents and even a UK couple who followed their kids to Oz an landed up heading home. The costs to get into Aus and give it a go dented their wealth significantly and set them back where they had to downscale their retirement ideas back in their home countries.