What I can do for you
The South African Revenue Service (SARS) revised the rules on retirement annuities in July 2008. South African expatriates are now able to access 100% of retirement annuities irrespective of age or when formal emigration took place.
The significance of this is that South Africans of any age can now withdraw their retirement annuity in full. If you left South Africa without formally emigrating, you can emigrate now and benefit from the new legislation. Formal emigration implies a tax clearance, South African Reserve Bank approval and a blocked account.
Why should I emigrate formally?
There are additional benefits of formal emigration:
- transfer your funds. South African residents who emigrate can take up to R10 million per person. Unofficially, there is no limit in practice; and
- inherit from a deceased estate and remit the full inheritance from South Africa. There is no maximum limit.
How can I find out more?
For more information, please contact me so that I can make an assessment of your particular situation.
This assessment will include:
- an estimate of how much South African tax is payable on the surrender of your retirement annuities;
- an offer to arrange the surrender of any retirement annuities; and
- an offer to arrange for your emigration, if you have not already done so.
What if I have already emigrated?
You can draw 100% from your retirement annuity even if you are not yet 55.
If you prefer you can retire after 55 and take one third in cash. There are several types of annuities available and I will be happy to illustrate these in detail for your particular situation. They include:
- capital preserver annuities where the capital is paid out on your death;
- joint life annuities;
- single life annuities; and
- market related living annuities.
