Christmas has come early for the bank’s shareholders with the decision to slightly increase the 2024 dividend – despite a single-digit decline in the net profit and cash earnings.
Beating the market benchmark is never easy, with 72 per cent of Australian actively managed global equity general funds trailing the S&P World Index in the six months to June 30, 2024. Domestic equity funds performed slightly better, albeit against a significantly lower bar set by the S&P/ASX 200 Index.
A European retirement plan requires dollars and sense
It’s only for a small minority, but there are options for those who want to pull up stumps in Australia and retire for a time in Europe. It’s not cheap and will require much research and planning. But for those closet Europhiles, it could be well worth the time and effort invested.
There’s much to consider, of course. It sounds like a dream come to true, living in Greece, Italy, Spain, or Portugal, all steeped in centuries of history with magnificent architecture, museums and art galleries, and that’s before mentioning the cuisine and wine.
Leaving the dollars to one side (for now), can you live happily away from children, grandchildren and friends, some lifelong? Many struggle with that after a few months. Then there’s the issue of language. Living in a foreign country is far different from a three-week TourRadar tour with a guide. And without some language, making friends will be that much harder.
But if you are determined to take the plunge, here’s some information of what’s required in the above mentioned four countries, as well as Malta and Cyprus.
Italy (especially Tuscany it seems) is high on the list of countries that’s attractive to retirees looking to live the dream. It has an Elective Residence Visa that comes with the following financial requirement: a passive income of €31,000 ($51,000) a year minimum to apply, or €38,000 ($62,000) for married couples, plus five per cent for every dependent minor.
It’s valid for one year and can be renewed for up to four years, and, after five years, you can apply for permanent residency. There’s one catch. On this visa, there’s a no-work clause, even remotely.
Spain is another European destination that captures the imagination of many, even if it doesn’t mean running with the bulls at Pamplona at your age. It’s slighter cheaper than Italy, but not by much with its Non-Lucrative Visa requiring you to have €28,800 (47,000) in savings, as well as demonstrating you have adequate healthcare cover.
This visa allows you stay for one year and, if you want to renew it, you will need to have spent at least 183 days in the country. It can be extended for four years and, like Italy, after five years you can request permanent residency that’s valid for 10 years and offers access to the country’s social security system.
Greece, the cradle of democracy, offers a very bureaucratic sounding Residence Permit for Financially Independent Persons that’s more appropriately known as the ‘golden visa’. For this Mediterranean country you will need a passive income of €24,000 ($39,000) a year as well an extra €400 ($653) a month for your spouse and €200 ($326) a month for any dependents. No commercial or work activity is allowed under this visa.
There are two other requirements: a rental agreement for a property for one year and proof of private medical cover.
This visa is issued for two years and can be renewed. But to keep your residency status, you must stay in Greec for at least half the time.
Cyprus, the third most populous and third largest island in the Mediterranean, has long appealed to tourists. Now its Category F visa is proving attractive to retirees as it boasts one of the lowest income requirements at just €9,568 ($15,625) a year. It can come from your pension, overseas rental properties, investments, royalties or dividends but must be sufficient for you and any dependents to live comfortably. You’ll also need to rent or buy a property.
Malta is another Mediterranean island riddled with history. It has a dedicated scheme, the Maltese Retirement Program, that differs to the other visas on offer. You’ll need to own a property worth at least €220,000 ($359,000) or rent one costing €8,750 ($14,289) a year, as well as have Maltese health insurance. Another twist is that if you’re retiring with your partner, you’ll need to demonstrate the relationship is stable.
Portugal has a D7 visa that requires you to have a minimum monthly income of €820 ($1339) – the lowest income requirement on our list. It doesn’t matter how it is sourced, pension, rental property or investments. You’ll also need evidence that you have somewhere to live and must stay in Portugal at least 16 months in your first two years.
