Could you make an early pension withdrawal?

A few years ago South Africans weren’t allowed to transfer the proceeds of their retirement annuities offshore before age 55. In 2008, however, a change in tax legislation made it possible for South Africans living overseas to encash their RA’s before retirement date and transfer the proceeds offshore to reinvest or use to their liking. This process, however, is only possible after completing a financial emigration process.

Early pension withdrawal

Though the abovementioned changes in legislation apply to retirement annuities, South African expats have always been allowed to transfer the proceeds of their pension, provident or preservation funds abroad. There is a catch, however, as South Africans are only allowed one lump-sum pension or preservation fund withdrawal before retirement.

With regards to provident funds, these are now more closely aligned in that they receive the same tax treatment as of 1 March 2016. It’s important to note that vested rights still apply, which means all funds accumulated in the provident fund before this date will be excluded from the new retirement reform treatment.

Talk to us about your needs

Knowing which course of action to follow is not always easy. Your best bet would be to take advantage of the free financial assessment and consultation offered by finglobal.com  This will ensure you are in a position to make a well informed decision.

After your assessment you’ll receive a quote and once this quote has been accepted you’ll automatically be entered into the promotional draw. Please note: the promotion is only valid for services accepted by 30 June 2017 so you’d better hurry up!

You will be under no obligation to take up finglobal.com services, but if you do we will manage the whole process from start to finish and you pay us only upon successful completion of the service.

Simply leave your details below and we’ll contact you to arrange your obligation-free consultation.

No need to wait until age 55 – Get a free financial report to discover the amount you can withdraw now and transfer to your new home.