Watch: Why Retiring in India Might Be the Smartest Move After 23 Years in Australia

3:34 Why? Because it was her siblings were there sisters were there and there were more opportunities for me in Australia than in New Zealand. So, we moved to Brisbane. It's just a kind of a celebris weather climate not too cold maybe a bit hot in summer but it was fine for us because we were from India. And even there we were settled down in we settled down quite fast and we are cruising along we we had a business restaurant business my sons were doing well. And then around the 2010 2011 they found partners like as in like serious relationship and one of them married a Punjabi Hindu other one married a Gujarati Hindu and they got married.

4:30 And at that time my wife and I were were thinking maybe spend more time in India with her siblings. She had got some siblings here also. And my siblings and maybe you know 6 months in India 6 months there. with that in mind we invested in an apartment in Coimbatore because it's a good good place to settle. so unfortunately fate you know thought differently and then she died in 2013.

5:06 Thanks for that and I'm sorry about the loss of your wife. I think this is a subtle point I think you mentioned which I wanted to expand. So, I think after kids got married I think you and your wife was planning to move to India you know spend 6 months in Australia 6 months in India. So, you mentioned about the lonely life. So, maybe you can describe and what was going on in your thought process like and also the kids response when you mentioned about hey I wanted to try living in India and Australia. Like how did it go and how was that conversations? Yeah yeah. So, well the kids got married in 2012 and and that's when we were thinking of like now the major responsibility is over and at that time we were thinking like all right now maybe we should think of spending more time in India. Her her my wife's mother was still alive in Bombay and she had two siblings in Bombay in India and I had three siblings in India four at that time sorry.

6:07 So that was it thought process and with that in mind we were we had which was under construction. but then in 2013 she expired suddenly and then the whole thought process changed and So, the the sons moved the moved out because they their house was ready and they they had children. now I got four grandchildrens by the way. I'm going four grandkids by the way. And and then that I was living alone working still working in IT in my work Suncorp. Yeah, the IT industry was undergoing some transformation yeah and a lot of tools were coming out and I was striving to cope.

6:58 And maybe my age was catching up with me. And at that time I was living alone my house it's a huge house and I was struggling to maintain it cooking my own food and living alone. That's when my sons suggested that how about you explore that possibility of spending some time in India because you got people there you can travel around you know the place you have lived there. So, with that in mind I came to India in 2017. And my sister was here in Chennai at that time. So, I was around the Mylapore area just known for its Carnatic music and the South Indian culture.

7:46 And I had passion for Carnatic music got it from my wife who was a veena artist. So, I was I was presently surprised to see that there were a lot of Carnatic concerts happening in Chennai almost every day. So, I used to go every every evening I used to go for a concert. So, and somehow I the one a few months became a couple of years and I was happy in Chennai. Around that time all these Ola and Uber and all the apps revolution came about. so it was easy to like buy things and then move around. No issue about you know bus or train all that thing.

8:33 So, you can you know you can book a cab and move around all that thing. So, it was life was getting very comfortable and I was quite happy about it. And then I was when I went for a visit to Australia in early 2020 and that's when COVID struck. and we were there I was there for 2 years and then came back I was in Bombay for a few months. And then I came back to Chennai and tried to re like resettle down. things had changed. My age approaching nearly 70. I could not sit at the concert for 2 and 1/2 hours to 3 hours. And so my focus changed to look out for my own health.

9:21 Like being fit and healthy. Yeah. And again my sons came to the rescue said no no no I think you should look for some bigger community where you can meet people. you get down from your apartment you meet 10 10 people around your age group. And I found this place and this is the one with the what 1,500 apartments and very highly cosmopolitan. a lot of NRIs live here. they have moved back from Australia and sorry from USA. And also from London they so it's quite a quite a well known good well good community with all amenities. And so I I use the swimming pool, I use the gym, and I I got a cook who comes and cooks for me. So life here is the lifestyle is fantastic.

10:18 Yeah. So I I I would not at this stage I would not go back to Australia. Of course, I'm not saying I I do love Australia but I find that at this age for me Chennai works better. India works better. Got it. >> So So right now, that's why I I love this place. No, yeah. Thanks for sharing this. Sounds like I think it was your kids who are open and suggested the you know, that India might be a better place for you to try it out. so maybe if we can

10:48 Talk a little bit about the planning. I know initial plan was to give it a try in India. And >> Yeah. few months became couple of years, and so on. I think then you kind of solidify your plan, like you know, make India as your home, but visiting Australia on a regular basis. Yeah. Maybe you can talk a little bit on the financial planning or any other planning, you know, you have done from your perspective to make the transition. Yes. Yeah. Now, Australia is a unique in the sense that see when I I do watch some of your programs, and most of them are from USA. Australia is quite different. you can be a you can be a citizen of Australia, but you need not be a resident for tax purpose.

11:35 So which means that if you're if you're resident for tax purpose, then you have to declare your worldwide income. So a lot of complexities around that that area. And so it took some time for me to master those issues, like okay, this is like this is like that. I I knew that India you have to pay tax. I mean, even on except if you get a aged pension, but I was not getting aged pension. I was getting my own super I was not eligible for aged pension because my saving threshold was a bit high. So I could not get that aged pension. So I knew I had to pay tax on the income in Australia in India.

12:25 But the residency status in Australia is quite it's a bit complicated. But I had a good accountant. He said to yeah, you at this time you are resident of Australia for tax purpose. But the moment you buy an apartment, then you will have to rethink about that because Australian government will wake up. And so that was I was That's why I was postponing and postponing and not buying an apartment. Yeah. Then finally, I I I I was able to manage my finances in Australia such that I could package them in such a way that my tax there would be almost zero. Yeah. So like any tax any returns on your super would be zero.

13:14 Any any tax on your dividends would be zero. So I I packaged my investments or re-packaged them to almost zeroize my tax in Australia even even after renouncing my tax residency status for tax purpose. Yeah. If I can put it that way. which means that I was paying tax in only one country, in India. So I mean I did lot of lot of research. I mean, my 2 years when I was there during the COVID, I saw many people. I did did all the research. I I used to do my own flowchart. If this happens, if this happens, if that happens. 183 days and this thing and that thing and finally, I got but got it fine-tuned for my requirement. Yeah.

14:07 Being retiree helped a lot. Yeah. if I were working and earning money, then it's different. Now, you you you you have to pay more tax. So the tax system there was very skewed in the favor of retirees. Hm. you don't have to pay tax. So that is excellent system, and I really admire that system. Got it. And then if I heard you correctly, so age-based pensions are not taxed in India, even though you're getting that from Australia. >> Yes. Yes. So it's not >> a Yes, there is a DTAA called the double taxation avoidance agreement. And that specifically mentioned that the pension that you get because of age that is not taxed in India.

14:58 But the pension that you get from your superannuation returns, that which you like your like in Australia, you have to withdraw a minimum of 5% from your super. the your your own super. and which means that that amount which you withdraw will be taxed in India. So that according to my accountant all the people I spoke here will be taxed here. So I whatever I withdraw, I bring I don't have money in India. I only bring from Australia. And I pay tax on that. So I I don't have problem paying tax on that because I'm enjoying the the system, the facilities here. So Got it. it worked it worked for me.

15:44 It may not work for everyone. Yes.

15:47 I know it's been about 8 years living in India, right? And especially for someone who lived in abroad for 25 years. How was the life with the transition, with changes, initial struggles, or you know, now? Yeah. Yeah. It It was It was It was and is still very very difficult. Not in terms of weather. When weather fine, we I I can put my AC on at in the daytime, and the cars are air-conditioned, the halls are air-conditioned. But the the the environment here the lot of pollution, number one. If you go out, and then you you can't walk in the streets of India, any anywhere in India.

16:35 I mean I don't want to single out any city. footpaths are nonexistent. Almost, and they're heavily encroached with shops, you know. Owning a car I don't have a car here. Owning a car is another driving is a nightmare. there are potholes everywhere. so and then I don't even want to talk about corruption. so things are tough here. Things were tough for me. interference by people, you know. You strike a conversation with anybody, your family or friend, and just casually mention about something, then they start advising you. No, no, you should not do this. You should do this or you should do that.

17:27 That's quite rampant in India. Other thing is that like the WhatsApp university, you know. it's very difficult. I mean, I I always tell my family that India is paradise as long as you ignore the surroundings. So but that doesn't mean India is bad. I mean, I found a lot of positives in like you get to meet people. You You get down from your house. You You walk around. You get 10 people. They were vendors. They They may be, you know, traders. But you get to talk to them. You get to know their life.

18:12 I didn't have that luxury in Australia. So So for me, that is a huge thing, you know, get to meet people, talk to people, and you know, see how how they live, how they cope. Another bad thing about India is the extreme poverty. it does affect you because you don't have that thing in overseas. it does affect you. you know, you you tend to tend to help people. people ask you for money. They help. so I do that to a to maximum extent, but you can't go on helping people. Yeah. So that's another thing in India which is rampant. Got it. Otherwise, the people are great.

18:58 Infrastructure, I said about the internet connectivity, 5G phones, excellent. you got apps for everything. So a lot of plus points. Yeah. I'm sure no place is perfect. I think you have to take the But but then but then being a senior citizen, my requirements were less compared to a those in their 40s with their kids and struggling with a career in India. Their requirements are much different. Yeah. So I was able to easily adjust.

19:31 Got it. one more question. I know you mentioned about living in a gated community now versus maybe I'm assuming it's an independent home before. So maybe I think I got a glimpse, but if there's anything that you can share some someone who is thinking about retiring in India, what would you suggest? yeah. I would say I would say are two things one can think about. One is a gated community like this where you get your cook or your servants come and cook for you or in a retirement community where there's a central canteen. You go and eat there. And so there's a menu fixed menu there and then every Monday is this every Tuesday is that and they have some some events and functions and all that.

20:26 But I I did go to a few of them just to see how they are and in fact I spent a couple of days in one of them in Chennai. I found that life becomes monotonous monotonous after some time there. And also the the most depressing part of that from my point of view is that you find a lot of elderly people living alone 70s 70s 80s and then having like going on a wheelchair. You know there are people also expiring dying like every every week like that. So it's kind of depressing. I said I'm not at that stage yet of my life. I'm I'm fit I walk I'm even though 70 I'm fairly healthy.

21:18 That that life is not for me. So if you have a problem medical issue then I would think maybe in that direction. Maybe you got a nurse to look after you. Some people can look after you 24/7. But for me this worked better because I can walk around I'm independent I live alone. so horses for courses. I mean so Got it.

21:42 Yeah. Is there anything that we haven't covered that you want to bring up? As in terms of advice for people >> Advice yeah. I would say I would say do your homework thoroughly. the first aspect is that don't assume India is hunky-dory everything is fantastic. India is still a developed country. India is still developing. There are lots and lots and lots of issues in India. so understand all those issues and see if you can work around them or see if you're able to still be happy even with those issues and look after your financial issues because the taxation can kill you.

22:30 So make sure you know the repercussions of your moving in terms of your tax implications. So so that's very important. And then if you got children education and all that you should think of all that. So it's not an easy thing need to do a lot of research. And and then zero in on the where you want to live how you want to live and whether you want to work from home or or do a business. That that will fall in place once you have done the research. Got it. Come come to India spend a few months travel around and then try to live as if you're living Airbnb or something some apartment then you get the taste of it and then you okay this is a problem no it's not for me I'm going back. Yeah.

23:22 I think that's a great advice if you have the flexibility better to spend few months as a resident not as a visitor so that you can get the And and the city city you want to be I mean Bangalore is fantastic weather-wise but then you got other issues Bombay very expensive. Chennai very hot you know you know all this you know pluses minuses pros and cons you have to evaluate. your your parents may be living in Noida so you might you might choose to Noida because there you want to be near the parents. So all these have to be considered. Yes.

23:54 Couple of quick rapid questions if you could sum up your experience living in India what would it be? everything takes time to servants are not that 100% reliable but then they when they come they work hard. So you have to be very patient dealing with call center dealing with banks going to shops it's not like in Australia or or anywhere else where they know what you're talking about. The the the in a mall if you go to a shop to buy textiles no they come after you with a with a bag and say look what are you what do you want? And so you know you have to you have to adjust Yeah. accommodate compromise. Yes.

24:51 And then what's one mistake most NRIs make when moving to India? again assuming that they can replicate the lifestyle in where from where they come from. Not not possible. Yeah. Unless unless you go to a place like Bangalore there's there's an NRI township in Bangalore. Everything is like what you have in USA. unless you you're in that category. but you can't replicate that lifestyle here it's completely different. You can't just own a car and say oh I'm going there with car I'm going by here. Fact fact the fact traffic is awesome very very bad. Yeah. And not organized so things are difficult things are difficult. Yeah.

25:40 No thanks a lot Mr. Kumar for taking the time and sharing your journey especially a lot of advice in terms of the in the financial planning or practicality of living in India and being patient and you know your own approach like you wanted to test it out and then you got an experience and then you how you even changed your decision process along the way. I think this is very helpful to our audience. So thanks again for sharing your story with us today. Thank you. It was a great pleasure to spend some time with you and I hope I can convey the message properly to people who are mainly from Australia who think of coming to here coming to India and settling down. I hope they do the research and then come back. Yeah thank you. Thanks a lot yeah.