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Transferring your SA pension to the UK

By June 23, 2015July 25th, 2020Pension fund

Transferring your SA pension to the UK

June 23, 2015

Whether you’re making a permanent shift, or working in the UK for a few years, there’s a lot to consider. A move like that requires piles of paperwork, suitable accommodation, schools (perhaps), moving precious pets and valuable furniture. You’re leaving a life behind, and although you are ready for the adventure – you can’t help the anxiety each time you think about the big move.

Moreover, you have no idea how to sort out your money issues. How do you plan for your future when your pension is in South Africa, but your life is abroad. Well, the answer may not be as complicated as you think.

You may not be aware of it, but if you transfer your South African pension to the UK, you could end up getting a boost of more than 25%.

One of our customers, John Smith, did just that and increased his pension value by 26% in 182 days. It’s legal, relatively easy, and ensures that your hard-earned money stays where it belongs – in your future.

So what did John do? Well, John simply took advantage of the UK tax authorities’ pension incentive. Finglobal.com surrendered his SA retirement policies (R694 720 in total) and paid the compulsory SARS tax withdrawal tax (R123 673).

We then converted the proceeds and transferred £30 867 to his UK bank account. This amount was reinvested in a UK pension fund which, thanks to the UK pension incentive programme, was supplemented with a whopping £7 717. To top it all, John could claim an additional £7 717 tax relief as a 40% taxpayer, which he also invested in his UK pension.

And if you decide to return to SA?

Should you make the great trek back to South Africa later, you’ll be happy to know that your retirement income will be paid out to you, tax free, in hard currency.

Deciding to put down roots somewhere new and novel can be daunting, but it is also an adventure. We want you to enjoy as much of the experience without having to worry about your finances. Your hard-earned money should be yours, no matter where you stay.

Make use of our please call me service so that one of our friendly financial consultants can contact you.

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