Withdrawal and Worldwide Transfer of South African Pensions and Retirement Annuities (RA's)
We have, for a number of years, had in place a process which provides for the withdrawal of South African private pensions (including Retirement Annuities) and their transfer overseas.
The process is relatively complicated because of the number of parties involved - including the insurance company or pension providers, the South African Revenue Service (SARS), South African Reserve Bank (SARB) and banks - and the amount of administration and supporting paper work is considerable.
In terms of eligibility, note that it remains an absolute requirement that South African citizens have formally emigrated before a transfer will be available, and a sign off by SARS means that your tax affairs must be current and in order. Note also that if your pension is already being paid, in the form of an annuity or otherwise, there is no option to capitalise the pension and effect a transfer.
The first stage of the transfer process involves establishing, on a no commitment basis, exactly how much is available for transfer after South African tax and the fees that would apply for administering the transfer process.
Any amounts withdrawn may be transferred to any offshore destination, on a worldwide basis, and do not have to be contributed to a pension scheme. However, in a number of countries that may be more tax efficient and you are encouraged to seek professional tax advice where appropriate.
If you are considering the withdrawal and overseas of your South African pension or retirement annuity (RA), wherever you might be located in the world, please provide your details in the contact form below and we will arrange for you to be contacted promptly and the process discussed in detail. The service is very cost competitive, includes SARS and SARB clearance, and wherever possible the supporting documentation has been pre-populated to reduce time and complexity.