More South Africans are living and working overseas than ever before. And with that comes a bigger question: how do you make your retirement savings work for you on a global scale? Offshore pensions for expats and international retirement plans offer a solution. They let you save in foreign currencies, grow your wealth efficiently, and plan for retirement with confidence. On top of that, they can make passing on your assets much simpler, without the usual cross-border legal headaches.
The rise in popularity of foreign pensions isn’t surprising. Many countries now recognise them under their laws, which means it’s possible to move pension funds overseas. There are also attractive tax incentives for pension holders. For many South Africans, the goal isn’t just moving money from South Africa to a new home—it’s about securing and growing wealth internationally in a smart, efficient way.
Temporary migrants – using a foreign pension while working abroad
Not everyone moving abroad is leaving for good. Some South Africans take contracts overseas for a year or two—or even longer—while keeping their home, family, and financial ties in South Africa. These individuals are considered temporary migrants.
For them, group pension plans are rarely available, but they can contribute to a personal pension plan. The good news? While contributions don’t provide immediate tax relief in South Africa, foreign pension receipts from services rendered abroad are exempt from tax. Even better, the investment growth in these offshore pension plans for expats isn’t taxed, so your money grows just like it would in a local pension in South Africa.
The benefits go beyond tax. You can invest 100% of your pension in global markets, in hard currency, and access your funds when needed. You also avoid the headaches of foreign wills, complex cross-border taxes, and probate. For anyone working abroad, a well-structured international pension plan can be a real game-changer.
South African emigrants – moving pension funds abroad
Then there are South Africans who decide to emigrate permanently. Often, they liquidate assets in South Africa and start fresh in a new country. But here’s the thing: many don’t realise how much more efficient it can be to hold some of that wealth in an offshore retirement plan.
Several countries actively attract foreign retirees with favourable tax treatment for foreign pension income:
- Cyprus taxes foreign pensions at just 5%.
- Malta’s Global Residence Programme applies a flat 15% tax on remitted pensions.
- Portugal’s Non-Habitual Resident (NHR) regime results in effective taxes of 5–9%.
- Spain, Greece, Italy, and Ireland offer low or zero rates under certain conditions.
- Singapore and Malaysia don’t tax foreign pension income at all, while Australia and New Zealand provide exemptions, tax-free growth, and favourable treatment for lump sums.
For South Africans planning to emigrate, a foreign pension isn’t just about retirement – it can help with passive income, visa requirements, and go a long way toward building wealth efficiently in your new home.
Pension contributions, withdrawals and transfers from South Africa
If you’re preparing to leave South Africa, you don’t have to cash in all your local retirement savings. You can use your discretionary or investment exchange control allowances to fund a foreign pension scheme.
The South African Pension Fund Act and FSCA Conduct Standard 1 of 2019 provide the framework for pension transfers in South Africa. Transfers are only possible once you’re no longer a South African tax resident and have a valid Tax Compliance Status (TCS) from SARS.
Even if you’re still technically a South African tax resident but working abroad, using a foreign pension can be a smart way to stash hard currency, invest globally, and enjoy tax benefits when you eventually retire.
Why offshore pensions and international retirement plans make global sense for South African expats
Choosing an international retirement annuity or offshore retirement plan opens doors you might not even have considered:
- Tax efficiency – foreign pensions often enjoy exemptions both abroad and under South African law.
- Global investments – your money isn’t limited to local markets.
- Flexibility – access funds when you need them, unlike some local pensions.
- Simplicity across borders – fewer worries about wills, probate, or taxation.
- Security – offshore pensions are highly regulated and professionally managed.
For anyone planning to work abroad, these benefits can make a real difference – not just for retirement, but for lifestyle, freedom, and financial confidence.
Thinking bigger than South Africa: offshore pensions for expats
Too often, pensions are thought of purely from a local perspective. But legislation in many countries, including South Africa, recognises offshore pensions for expats. This can unlock opportunities like tax efficiency, global investment access, unrestrained income options, and even easier residency and visa planning.
Whether you’re working abroad, planning to emigrate, or already living overseas, a foreign pension fund can be a powerful tool in your financial toolkit. Engaging with regulated providers and advisors who specialise in cross-border planning ensures that you make the most of these opportunities.
Long story short? A foreign pension isn’t just a retirement plan – it’s a way to make your money work globally, grow your wealth strategically, and live the life you’ve been planning for.
Read more: Investing offshore as a South African – foreign pensions is the gateway to building global wealth.
FinGlobal: financial migration specialists for expats
Moving your money abroad doesn’t have to be complicated. With the right guidance, it can be simple, safe, and efficient.
At FinGlobal, we help South Africans around the world manage their cross-border finances with confidence. From international money transfers and South African retirement annuity withdrawal to expat tax compliance, we make the process straightforward, cost-effective, and fully compliant. We’ve supported thousands of South Africans in over 106 countries, helping them navigate every aspect of their international portfolios. Now, we’re ready to do the same for you.
Take the next step toward financial freedom. Leave your contact details below, and one of our specialists will get in touch to discuss how FinGlobal can help you achieve your cross-border financial goals.