For once the saying ‘it’s too good to be true’ need not be taken with a pinch of salt. South Africans living outside the country are fully entitled to transfer proceeds from their retirement annuities, pensions, preservation funds and other financial assets offshore.
That’s not to say one can arbitrarily cash-out your retirement investments as you please. As to be expected in money matters there are conditions, to protect your assets and yourself so as to stay in good stead with the authorities.
Amended legislation of 2008 that affords South African expats the opportunity to transfer their retirement savings offshore – before the generally accepted retirement age of 55 – is not common knowledge and worth knowing about.
When looking into the matter you’ll find it a perfectly clear, equitable and do-able solution to relocate local investments and financial assets to your new home country.
The misunderstood concept associated with the change in legislation lies in the term financial emigration. The popular assumption amongst expats – I’ve emigrated when I left the country to go work and live abroad, so why the need to emigrate again?
The term financial emigration pertains to your money emigrating from South Africa with approval of the Reserve Bank in terms of exchange control regulations. This process – also known as formal emigration – is what it takes for you to freely move your financial assets offshore, without affecting your birth right, citizenship and right to a South African passport.
Transferring your wealth and retirement investments to your new country of residence positions you as a Global Citizen of the World, meaning you’re free to expand your horizons to make international investments, and making your life easier.
To find out the cash values of your South African policies make use of our free personal financial report service.