Ever dreamt of spending your retirement sipping cocktails on a sun-drenched beach, exploring ancient ruins, or immersing yourself in a completely different culture? It’s a daydream that crosses the minds of many South Africans, especially those who’ve worked hard and are now ready to play hard while they enjoy their golden years.

However, the decision to retire internationally is a complex and personal one that involves reflection on financial, social, and lifestyle factors. Many wealthy individuals explore the possibility of retiring in another country, carefully evaluating the potential benefits and drawbacks. This means extensive research, discussions with others who have made similar moves, and an introspection on your priorities.

What wealthy South Africans must consider retiring abroad?

To help you reach the right decision for yourself and your loved ones, we’ll take a quick look into the motivations behind considering retirement abroad. We’ll weigh up the pros and cons of retirement and financial planning, giving you five compelling reasons why wealthy individuals contemplate retiring in another country. Then, we’ll give you five reasons why, ultimately, many decide to remain in their home country.

Five reasons wealthy South Africans want to retire overseas:

1. They’re chasing that dream lifestyle by retiring in another country.

Let’s be honest: who hasn’t dreamt of a change of scenery? For many high-net-worth individuals, retirement isn’t just about putting your feet up; it’s about embracing new experiences – all the things they didn’t have time for while focused on career and family. Retiring internationally offers the chance to step into the unknown, explore stunning landscapes, and enjoy a different life pace.

Think about the endless possibilities – world-class cuisine, vibrant arts scenes, a beachfront villa or a log cabin on a remote island. It’s about having the freedom to pursue passions and enjoy the fruits of your labour in a truly fulfilling way. The “best places to retire in the world” lists are often filled with destinations offering unique lifestyle advantages that can be hard to replicate back home.

2. They’re focused on their money by being smart with financial and retirement planning through portfolio diversification.

Financial security is paramount, especially in retirement. Relocating abroad can be a clever financial planning move for high-net-worth individuals, allowing for portfolio diversification and potentially accessing more favourable tax regimes.

High-net-worth individuals often have complex financial portfolios, and international markets can offer exciting opportunities. Consider different investment options, lower tax burdens, and a chance to optimise their retirement income. Plus, with the rand’s volatility, many are drawn to the stability of currencies like the euro, pound, or dollar. It’s all about protecting that hard-earned wealth and making it work in the long run.

Read more:

• Investing offshore as a South African – foreign pensions is the gateway to building global wealth.
• The growing concern of pension sustainability for South African expats.

3. They’re considering leaving South Africa because they crave peace of mind, safety and security.

Sadly, concerns about safety and security are significant for some South Africans considering retiring abroad. Everyone deserves to feel safe and secure, and the perception of high crime rates and political instability can understandably lead people to explore other options. It’s a profoundly personal decision, and many research the safest places to retire abroad, ready to leave behind electric fences and armed response companies in favour of a more relaxed lifestyle.

Read more: Plan B: Exploring Alternate Destinations for South Africans Looking to Move Abroad.

4.They’re considering retiring abroad because they focus on healthcare and personal well-being.

As we get older, access to quality healthcare becomes increasingly essential. Wealthy South Africans prioritise access to advanced healthcare systems and readily available medical services. With the uncertainty around South Africa’s National Health Insurance (NHI) system, retiring abroad can ensure that top-notch medical care will remain easily accessible, providing peace of mind for them and their loved ones. Robust healthcare infrastructure and specialist treatments are big draw cards for many who do not wish to remain in South Africa and possibly become a burden on their children.

5. They’re considering leaving South Africa because they increasingly desire stability.

This isn’t just about wanting a comfortable retirement; it’s about a yearning for a secure future where the rules aren’t constantly changing, and long-term plans feel achievable. The ongoing political and economic uncertainty challenges in South Africa are significant drivers behind this desire.

It’s not just the big headlines; it’s the everyday impact of corruption, unreliable service delivery, and fluctuating economic policies that chip away at confidence. Power cuts, for example, aren’t just an inconvenience; they disrupt businesses, impact daily life, and create a general sense of unease. These aren’t abstract problems; they have real consequences for financial planning and peace of mind.

For many, the constant uncertainty makes it difficult to envision a stable and secure retirement in South Africa. They look towards countries with more predictable political and economic landscapes. In these places, they can feel confident that their investments are safe, their healthcare will be accessible, and unforeseen challenges won’t constantly undermine their quality of life. It’s about finding a place where they can truly relax and enjoy their retirement years without worrying about what tomorrow might bring. This search for stability isn’t about abandoning South Africa but securing a more predictable and peaceful future.

Read more: Top 5 reasons South Africans consider emigration.

Five reasons why wealthy South Africans decide not to retire abroad

While retiring overseas can be tempting, many wealthy South Africans ultimately stay put. Here’s why:

1.They decide against retiring abroad because the pull of home, family and community is too strong.

For many, the most significant factor in staying in South Africa is the deep and enduring connection to family and friends. Leaving behind children, grandchildren, and lifelong relationships built over decades is a monumental emotional hurdle. These aren’t just casual acquaintances; they are the people who form the fabric of their lives, support networks, and community. Even the allure of a seemingly perfect overseas retirement, with its promise of financial security and exotic experiences, often pales compared to the importance of these personal ties.

2. They stay in South Africa for retirement because the lifestyle is truly unbeatable.

South Africa offers a quality of life that, particularly for those with the means to enjoy it, is incredibly appealing. It’s waking up to glorious sunshine, spending your days exploring stunning landscapes, from dramatic coastlines to the vast bushveld, and enjoying world-class wines in picturesque vineyards. It’s the relaxed outdoor lifestyle, the braais with friends and family, the easy access to nature reserves and game parks – these are the things that make South Africa unique.

This combination of climate, scenery, and social connections is hard to beat for many retirees. Trading sunny skies and bushveld escapes for the often colder and more restrictive climates of other countries, with their different social norms and pace of life, just doesn’t appeal. The familiar beauty of home, the rhythm of life they’ve always known, holds a powerful and undeniable draw. It’s a lifestyle ingrained in them, a part of their identity, and something they’re reluctant to give up.

3.They decide against leaving South Africa because the cost of living is a significant advantage.

While certain things like property can be expensive, the overall cost of living in South Africa is often a pleasant surprise for wealthy individuals compared to places like Australia or the UK. Everyday expenses, from groceries and domestic help to entertainment, are generally more affordable. This allows retirees to maintain a comfortable lifestyle without worrying about stretching their retirement funds. It’s simply that in South Africa, it’s possible to make their money go further.

4. They stay because it’s familiar and comfortable. Instead of retiring overseas, they stick to what they know.

Navigating a foreign country’s legal, financial, and healthcare systems can be daunting, mainly if it’s in a foreign language. Even if those systems are excellent, there’s an absolute comfort in dealing with what you’ve always known. Whether it’s your local bank, doctor, or municipal services, the familiarity of South African systems and institutions can be a significant factor in deciding to stay. It’s about minimising stress and maintaining control, which becomes more critical with age.

5.They decide against retiring abroad due to the tax and financial complexities of leaving South Africa.

Retiring abroad can open a can of worms regarding taxes and financial administration. While double taxation agreements exist, navigating international tax laws can be complicated. For some, managing their finances locally in South Africa is more manageable, especially given the absence of a wealth tax. Furthermore, staying in South Africa offers a much more straightforward approach for those who still have business interests or investments to manage.

Read more: If emigration isn’t an option, explore these valuable tips for staying in South Africa.

FinGlobal: cross-border financial specialists for South Africans

No matter where you decide to spend your retirement, FinGlobal is there to assist you with your money moves. From tax emigration to making international money transfers and retirement annuity encashment, FinGlobal will help ensure that every move you make is cost-effective, time efficient and tax-compliant. Our team of certified international financial planners, lawyers, chartered accountants, tax specialists, and bankers offer comprehensive expertise in all aspects of cross-border finance, and they’re ready to help you with a tailored solution for your needs.

To enquire about our services, please fill out the contact form below, and one of our expert consultants will be in touch to answer any questions you might have about retiring overseas.