Relocating from South Africa and adjusting to life abroad can feel overwhelming, with an endless list of tasks to complete. From settling into a new culture to managing cross-border finances, it’s natural to have questions—one of the most common being: Can I access my South African retirement annuity now that I’ve moved?
While withdrawing your South African retirement funds might seem straightforward, the process involves several steps and requirements that can complicate things.
If you’re considering cashing in your retirement annuity, here’s a simplified step-by-step guide to help you understand what to expect and prepare for the journey ahead.
5 Steps for expats to withdraw your South African retirement annuity
Step 1: Cease South African tax residency
You must officially inform the South African Revenue Service (SARS) that you no longer meet the requirements to be treated as a South African tax resident. This involves submitting a declaration of non-residency (usually via the RAV01 form in your eFiling profile) and supporting documents. SARS will assess your status using the physical presence test and the ordinarily resident test.
Once accepted, you’ll receive official confirmation that you’ve ceased to be a South African tax resident.
Read more: South African Tax Residency Rules – Are Expats Still Tax Residents of South Africa?
Step 2: Observe the three-year rule
SARS requires that you be a non-tax resident for three consecutive years before accessing your retirement annuity. This rule ensures your emigration is permanent and not simply a way to unlock your funds early.
If you’ve already lived and worked abroad for three years and no longer meet the physical presence or ordinarily resident criteria, you can proceed without delay after tax emigration.
Step 3: Apply for a TCS PIN for Approval International Transfer
The TCS PIN for Emigration no longer exists. Instead, you must now apply for a Tax Compliance Status (TCS) PIN under the “Approval International Transfer” (AIT) category. This is mandatory if you wish to transfer more than R1 million abroad in a calendar year, whether as a current or former tax resident of South Africa. SARS will require detailed supporting documentation, including:
- A Statement of Assets and Liabilities (local and foreign)
- Details of the source of your funds
- Confirmation of your non-resident tax status
This application may trigger manual intervention from SARS, which can cause delays in the process.
Read more: SARS Approval of International Transfers – what South Africans need to know in 2025.
Step 4: Submit your withdrawal request to your fund
Once the three-year rule is satisfied and you have your TCS PIN for AIT, you can submit a withdrawal request to your retirement annuity provider. They will apply for a tax directive from SARS to calculate the tax due on your lump sum.
Be aware that SARS may request additional documentation before issuing the tax directive, which can cause further delays.
Read more: Simplifying South African tax directives for expats: what they are and why they matter.
Step 5: Receive and transfer your retirement annuity payout funds
After the tax directive is issued and your provider processes the withdrawal, your retirement funds will be paid out, less any applicable withholding tax based on the retirement lump sum tax tables.
You can then provide your TCS PIN to your authorised dealer (bank or financial institution) to transfer your funds abroad.
Read more: Emigration and your South African Retirement Annuity – let’s talk facts, expats!
Can you withdraw your retirement annuity before 55?
Yes—but only if you’ve emigrated from South Africa, ceased to be a tax resident, and satisfied the three-year rule. Financial emigration through the Reserve Bank is no longer required; however, tax emigration through SARS remains a necessary step.
FinGlobal: retirement annuity withdrawal specialists
Withdrawing your retirement annuity in South Africa before age 55 is possible if you follow the proper steps. By ceasing South African tax residency, adhering to the three-year rule, and obtaining your TCS PIN for AIT, you can liberate your investment and transfer your retirement funds offshore. Need help finding your way through the SARS tax emigration process or a hand with the AIT application?
FinGlobal can assist you every step of the way with cashing in your South African retirement annuity. Please leave your contact details in the form below, and we’ll be in touch to discuss the best way to migrate your finances
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