By now readers of fresh milk know that the lump sum of their Retirement Annuity Fund benefits can be paid out before age 55, by simple emigration from South Africa. While this may be old news it’s good news. What if your money is tied up in a Preservation Fund?
If you’re on the wrong side of 55, the 2013 Tax Directive Guide on Emigration allows only a third of RA fund values to be paid out in a lump sum, the balance must be used to purchase a monthly annuity. This is not good news for expats living abroad.
It’s logical for South Africans living overseas to be unaware and uninformed of these facts. So, if you’re in your 50’s you should think about doing the clever thing sooner rather than later, and consider having the value of your preservation fund paid out, before it’s too late.
Are you on the wrong side of 55? Are you happy with a monthly annuity paid from South Africa to your international bank account? Maybe not?
The good news: at finglobal.com we offer an intelligent retirement solution, where the full fund value can be paid to your international bank account, no matter where you live. Interested? Register today. we deliver. no bull