So you’ve made the decision – you’re taking the leap, shipping off and making a fresh start in the green vales and thronging city centres of the UK.
You’ve got the schools sorted for the kids, settled on a nice cosy bedsit in the country, but have you considered your future? Have you given thought to your money matters?
Moving abroad can be daunting, but what you may not know is that you can (in fact), be better off if you transfer your South African pension to a UK pension. Thanks to the UK pension incentive programme, you can increase your pension with more than 25%.
One of our customers had a similar dilemma. But 182 days later, John Smith had increased his pension value by 26%. Although Cashkows could only surrender R571 047 of his R694 720 total pension value due to the compulsory SARS withdrawal tax, John saw significant benefits after the pension transfer.
The proceeds were converted and £30 867 was transferred to his UK bank account. This amount was reinvested in a UK pension fund which was supplemented with £7 717 thanks to the UK tax incentive programme. In addition to this, 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.
As a licensed FSP, Cashkows specialises in providing South Africans, like you with peace of mind. While you worry about getting settled in, and shipping gran’s couch in one piece to its new home, we’ll take care of those nagging money matters.
Make use of our please call me service if you are interested in transferring your South African Pension to the UK.