15 Best Places to Retire in Australia

This article takes a look at the 15 best places to retire in Australia. If you wish to skip our detailed analysis on the rise of ETF investments in Australia and the country’s viability as a retirement destination, you may go to the 5 Best Places to Retire in Australia.

The Rise of ETF Investments in Australia

The Commonwealth of Australia, with its impressive mega-cities, tropical beaches, and many natural wonders, is one of the fastest-growing countries in Asia. Its economy is expected to continue outpacing other advanced economies, with a growth of 1.6% as of 2023. Both prosperous and innovative, this very economy has been a hub for international businesses, attracting investments from around the world. As of 2021, foreign direct investment (FDI) surpassed AUD 1 trillion, equating to almost half of its economy. However, the years ahead for the country see a weak economic outlook amidst tightening financial conditions.

Cost of living pressures in the country are increasing drastically. In the 12 months ending March 2022, the Consumer Price Index (CPI) saw an increase of 5.1%, the highest annual rise since 2000.  In the June 2023 Quarter, all five Living Cost Indexes (LCIs) rose between 0.8% to 1.5%. The LCIs measure the impact changes in prices have on the expenditure of goods and services for a range of different household types (employees, age pensioners, other government transfer recipients, and self-funded retiree households). As such, housing, insurance, and financial services, as well as food and non-alcoholic beverages have been the main contributors to Australia’s cost of living increases.

Due to cost of living pressures and the rise in interest rates, many investors, particularly Australians, are choosing ETFs for instant diversification at lower costs. In particular, Australia’s ETF industry has been gaining attention for all the right reasons. Their ETF industry has recorded a faster pace of growth than previously forecast, as stated by ETF provider Betashares. Funds under management in the industry have exceeded $150 billion as of the year 2023. By the end of August 2023, investors had put in over $26 billion, the highest amount invested in a single year.

Market Index notes that liquidity is a key attraction for these ETF investors. ETFs are easier to manage, cost less, and help navigate through uncertainty better than direct shares and funds. Some of the top-performing Australian ETFs that investors can buy include iShares Core S&P/ASX 200 ETF (IOZ), iShares Global 100 ETF (IOO), and SPDR S&P/ASX 200 Resources Fund (OZR), notes Forbes.

These ETFs have low management fees and decent 5-year returns as well. As such, the lucrative industry has been further motivating market ETF providers such as BlackRock, Betashares, and Vanguard to drop their annual management fees, so that they can gain the most market share. Morningstar believes that now is the right time for investors to make use of these market conditions to achieve a greater variety of products at lower costs.

Retiring to Australia

As we explore the various aspects of Australia's dynamic economic environment, particularly the ETF industry, it's worth noting that this country offers more than just financial opportunities. The country is also increasingly becoming a sought-after destination for retirement, with its top cities ranking highly in terms of quality of life, healthcare, stability, and infrastructure.

However, for expat retirees who wish to move to the country, Australia has canceled its retirement visa scheme in its 2018-19 budget. Even though the Australia retirement visa is closed, those who already have the retirement visa document may apply for permanent residency through the Pathway program.

A common question retirees often ask us is how much they need to retire to Australia. According to the Association of Superannuation Funds of Australia (ASFA), an individual retiree would need $45,239 annually for a comfortable retirement in Australia if they own their home. Else, they would need at least $63,799 annually. While the cost of living in the country tends to be on the higher side when compared to other retirement destinations like the Caribbean, Mexico, or even places in Asia; retiring to Australia has its fair share of benefits.

For starters, the country consistently ranks high in all quality-of-life indices. Healthcare is great, the infrastructure is outstanding, and the natural beauty is simply marvelous. The country also promises a diverse range of climates, from tropical climate in Northern Australia to temperate climates in the South, arid and semi-arid regions in Central Australia, Mediterranean-like conditions in the coastal regions on the West, and finally, sub-tropical climates in the Eastern part of the country.

All in all, the country is an excellent choice for expat retirees to spend their golden years.

15 Best Places to Retire in Australia
15 Best Places to Retire in Australia

Tupungato/Shutterstock.com

Methodology

For compiling the list of 15 best places to retire in Australia, we have used several sources such as Over Sixty, Real Insurance, Plan A Retirement, Hometown Australia, amongst others. We have also used several expat forums to incorporate expat opinions based on their experiences of living in Australia.

We adopted a consensus approach, assigning one point to each place recommended by a source. Scores were added, and places were ranked based on an ascending order from the lowest to the highest scores.

The cost of living data presented below notes the monthly expenses of an individual retiree residing in Australia. This cost also includes the monthly rent of a one-bedroom apartment in the city/town center. The figures discussed have been sourced from International Living and Nomads List, amongst others.

15. Echuca, Victoria

Insider Monkey Score: 4

Sitting idyllically on the Murray River, Echuca is a charming town to retire in the state of Victoria. Retirees get to enjoy a riverside living experience here, enjoying the peace and tranquility that comes from living near the water. The historic port area is well-preserved for history enthusiasts, featuring historic buildings, cargo sheds, and restored paddle steamers.

The Discovery Center is a beautiful compliment to Echuca Wharf's historical experience, showcasing artifacts, photographs, and interactive displays in its museum. The climate in the town is relatively mild, and the summer average is around the low 30s (°C). As compared to other major cities, the monthly cost of living for an individual is affordable at $2,000, which includes rent. The median sale price of a home in Echuca is $370,000.

14. Mornington Peninsula, Victoria

Insider Monkey Score: 5

The stunning coastal beauty of the Mornington Peninsula, characterized by beautiful beaches, cliffs, and serene bays, serves as the perfect backdrop for a retirement home. The temperatures remain relatively mild throughout the year, ideal for enjoying the wide range of festivals, art galleries, and recreational activities that the coastal destination offers.

Not only is Mornington Peninsula one of the best seaside retirement towns in Australia, but is also revered by enthusiasts for its vineyards and wineries. For those looking to downgrade, the Peninsula can also be one of the best places to downsize in retirement. From retirement communities to small homes and apartments, there are a lot of options available depending on budget. On average, the monthly rent for a one-bedroom apartment in the city is $1,730, while the median sale price of a home is $1.1 million.

13. Gold Coast, Queensland

Insider Monkey Score: 6

Gold Coast, a metropolitan region on Australia's east coast, is renowned for its pristine sandy beaches and surfing spots. The subtropical climate is ideal for enjoying the outdoors, and retirees love to explore the lush hinterland and engage in activities such as hiking and golf. A wide range of amenities are available in the city, including world-class healthcare, restaurants, shopping centers, and cultural activities.

The city is also home to famous beaches like Coolangatta and Surfers Paradise, embalmed with beach side cafes, restaurants, and bars. The monthly cost of living for an individual retiree, which includes rent, ranges between $2,500 to $3,500; while the median sale price of a home is $945,000.

12. Coffs Harbour, New South Wales

Insider Monkey Score: 6

Coffs Harbour, simply called Coffs by the locals, is popular amongst retirees for its lush hinterland, mesmerizing beaches, and temperate climate. Retirees love to take a stroll along the Coffs Harbour Jetty, watch dolphin shows at the Dolphin Marine Conservation Park, hike to Muttonbird Island to enjoy panoramic views of the coast, and even enjoy a good game of golf at Coffs Harbour Golf Club. Retirees also get a chance to savor fresh catches of the ocean, as the city is a seafood lover’s paradise. An individual retiree would need between $2,500 to $3,000 (which includes rent) to live here comfortably. The median sale price of a home in Coffs Harbour is $775,000.

11. Moreton Bay, Queensland

Insider Monkey Score: 7

The stunning coastal environment of Moreton Bay in Queensland is ideal for retirees. The subtropical climate is perfect for enjoying year-round activities such as boating, fishing, and even golf. Rich natural surroundings add to the appeal of retiring here, as do the numerous cultural amenities. The median sale price of a home here is $700,000, while the median rent is $550 per week. On average, the monthly cost of living for an individual retiree is $3,000, which includes rent.

10. Victor Harbor, South Australia

Insider Monkey Score: 8

The coastal town of Victor Harbor is one of the best places to retire in South Australia. Neighboring national parks, a mild climate, and various cultural amenities make for an amazing retirement experience. The coastal town is also surrounded by Fleurieu Peninsula and Granite Island, perfect for scenic walks and birdwatching. The median sale price of a home in Victor Harbor is $525,000; while median rent is $470 per week.

9. Hunter Valley, New South Wales

Insider Monkey Score: 9

Australia’s premier wine region, Hunter Valley, is revered for its scenic vineyards, lush landscapes, and rolling hills. Retirees love to taste wine at its big-name wineries and boutique bottlers, go hot-air ballooning, and explore the national parks and wildlife reserves. The temperatures remain comfortable throughout the year, ideal for numerous outdoor pursuits such as hiking, golfing, and strolling through the countryside. Natural beauty, recreational activities, and a tranquil environment make Hunter Valley one of the best places to retire in New South Wales.

8. Lake Macquarie, New South Wales

Insider Monkey Score: 10

Retiring to Lake Macquarie offers retirees the opportunity to live by the largest coastal saltwater lake in Australia. Numerous water-based activities can be enjoyed at the lake, and retirees get to enjoy an active lifestyle. Art galleries, music festivals, and local clubs keep retirees busy all year round. Owing to the opportunity of lakeside living, a friendly community, and a wealth of recreational options, Lake Macquarie is one of the best places to retire in Australia for retirees. The median sale price of a home here is $860,000; and the monthly cost of living for an individual retiree, which includes rent, ranges between $2,000 to $2,500.

7. Margaret River, Western Australia

Insider Monkey Score: 11

Home to world-renowned vineyards, gourmet dining establishments, and stunning coastal beaches, Margaret River is one of the best places to retire in western Australia. The town enjoys a temperate climate, is home to a thriving cultural scene, and has a strong sense of community. Stunning coastal beaches such as the Prevelly Beaches add to the appeal of retiring here. The median sale price of a home here is $698,000; while the cost of living (including rent) ranges between $2,500 to $3,500.

6. Sunshine Coast, Queensland

Insider Monkey Score: 12

Sunshine Coast in Queensland is one of the best coastal retirement towns in Australia. Apart from the stunning coastal beauty, the region is home to pristine national parks and nature preserves, lots of cultural amenities, and abundant opportunities to enjoy the outdoors. Those who wish to venture beyond the coast can explore the Hinterland, home to the most spectacular treks, an array of ancient volcanic peaks, and the best luxury retreats amidst the rain forest. The median sale price of a home here is $950,000. Moreover, an individual retiree would need a monthly passive income of $3,000 (which covers rent) to retire here.

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Disclosure: none. 15 Best Places to Retire in Australia is originally published on Insider Monkey.

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