Question:
I’m 70 years old and have been retired for five years. Hypothetically, if I was to emigrate to New Zealand, could I transfer all my Old Mutual pension fund investments to that country? Old Mutual pays me a monthly pension from these investments presently.
Answer:
Ray,
This depends on the nature of your pension fund “investments”. Judging by your comment – that Old Mutual is paying you a monthly pension – it appears that you have used your retirement funds to purchase a guaranteed annuity. This is, in effect, an insurance policy, as you have passed the risk of your longevity and poor market returns onto them (in exchange for your savings). Once you have purchased this annuity, you no longer own the underlying assets, and there is nothing to transfer to another county. If you emigrate, you will then have to expatriate your monthly pension proceeds abroad. But if you have invested in a living annuity – effectively a draw-down account – then you still own the assets. On formal emigration (ie signing off with SARS) and payment of the relevant taxes, you will be able to take the balance of your account offshore.
