Question:
Hi I'm emigrating to the UK. Can you explain to me the process for withdrawing my pension in cash. Thanks George
Answer:
George, This is very simple. You need to get hold of a withdrawal notification form from your HR department, complete this and return with required supporting documents (proof of banking and ID) to your HR department, who will counter-sign and forward to the fund administrator for processing. The money, net of tax, will be paid into your bank account. You can then take this offshore as part of your emigration allowance.
Note you can only do this if you have not yet reached normal retirement age per your fund rules. If you have, you will be required to use two-thirds of your fund balance to buy a pension in SA. If you are already in receipt of a SA pension (living or guaranteed annuity) then you are "locked in", ie you cannot transfer the pension overseas - you will continue to be paid here and the onus will be on you to move the cash abroad. If your money is invested in a preservation fund, the process is the same. If your money is in a retirement annuity, then it is more difficult, as you then need to go through the formal financial emigration process with SARS. Please read our blog post on emigration.
