In this guide
It’s often said that location is everything where property is concerned, but it also makes a big difference to how far your money stretches in retirement.
According to the Australian Bureau of Statistics (ABS), 67% of Australians live in a capital city. Better job prospects and education offerings are two major factors that attract working age adults and families to the city.
ABS statistics show median household incomes in mainland capital cities are all well above incomes in regional areas. For example, the median household income in Sydney in 2021 was $2,077 per week compared with popular retirement locations such as Byron Bay ($1,602 per week) and Coffs Harbour ($1,363). Similarly, Brisbane households earned substantially more ($1,849 per week) than those of the retirement mecca on the Sunshine Coast ($1,574).
Not only do city slickers earn more, they spend more due in part to their higher disposable incomes but also because of the higher cost of living in major capital cities. This has big implications once people retire and their focus shifts from wealth accumulation to drawing on their savings.
The desire for a cheaper and simpler lifestyle is undoubtedly a major motivation driving older Australians to make a sea or tree change. ABS figures show the proportion of people aged 55 and over is smaller in capital cities (26%) than in the rest of Australia (34%).
So when it comes to planning your retirement, where you live can be just as important as how you want to live and how much you need to save to afford it.
Shift to the regions
It seems the lure of country living was not a one-off phenomenon. The move from capital cities to regional Australia is tracking at levels reported at the height of COVID, and 16.4% above pre-pandemic levels, according to the June 2024 Commonwealth Bank/Regional Australia Institute Regional Movers Index.
In the 12 months to June 2024, 27% more Australians moved from capital cities to the regions than in the opposite directions.
The table below shows the top 5 regional hotspots by share of net internal migration.
| Sunshine Coast Qld | 14.1% |
| Greater Geelong Vic | 8.1% |
| Moorabool Vic | 5.4% |
| Lake Macquarie NSW | 4.8% |
| Gold Coast Qld | 4.2% |
Source: CommBank/RAI Regional Movers Index
The following table shows the top 5 regional hotspots by growth in net internal migration. As you can see, the NSW south coast is enjoying a surge in popularity.
| Bega Valley NSW | 314% |
| Eurobodalla NSW | 311% |
| Strathbogie Vic | 297% |
| Northam WA | 250% |
| Surf Coast Vic | 225% |
Source: CommBank/RAI Regional Movers Index
