COMMUNITY LIVING
What should you do with your South African pension if you move abroad ?
CASHING IN A PENSION – GOOD OR BAD ?
28 R E T I R E M E N T
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Moving abroad can be an exciting new adventure , but it can also raise questions about your financial future . One of the biggest concerns for many people is what to do with their South African pension .
Generally , retirement funds only allow members to access their benefits in three instances : upon resignation or termination of employment , upon retirement , or in the unfortunate event of death . For South Africans moving abroad who are terminating employment , the ability to access the capital in a pension becomes an option . But should this be done ?
Know your situation
The decision to withdraw your South African pension should be made carefully and only after obtaining professional advice to avoid ending up paying avoidable taxes and reducing the hard-earned pension that is available to you .
Your decision is likely to be dependent on whether you are emigrating permanently or if will you be returning to South Africa at a later stage .