OFFSHORE STRUCTURES
Offshore Retirement
Structures Offer an Array of Investment Options for SA Investors
S
outh Africans looking for tax-efficient retirement planning solutions have an array of offshore investment options available to them – but it ’ s important to choose the right investment vehicles , and to choose reputable financial advisors with a sound track record .
That was the key message to emerge from Sovereign Trust SA ’ s fifth annual International Retirement Seminar , held in Johannesburg and in Cape Town last week . The seminar brought together a range of experts in the field of offshore retirement planning , including financial advisors and family trust lawyers who counsel clients on international pension planning and pension structures .
Joanne Baynham , director and head of investment strategy at MitonOptimal SA , set the scene for the seminar with an incisive overview of the global economy – which is growing , but slowing , with looming trade wars worrying investors . She believes the table is set for the return of inflation , although still not runaway , and a measure of tightening that will cause volatility and equity market weakness . Worrying for South African investors , she believes that technically , the US Dollar could get stronger .
Not surprisingly , several of the speakers to follow Ms Baynham highlighted the importance of offshore investing as a hedge against the volatile Rand , with South Africa ’ s declining currency offering little in the way of a protected future lifestyle . Thanks to relaxed foreign exchange control legislation in recent years , South African investors should look to use the Reserve Bank ’ s R10 million foreign investment allowance to diversify more freely into other markets , currencies and opportunities , and thus to hedge against currency risk and secure more stable retirement funding .
Tim Mertens , the chairman of Sovereign Trust SA , said that in spite of the looming threat of Brexit , and more aggressive UK tax legislation , buying property in the UK remains a sound retirement planning option , especially when done through vehicles like Qualifying Non-UK Pension Schemes ( QNUPS ).
Richard Neal , a director at Sovereign Trust SA , highlighted the benefits of Guernsey ’ s so-called ‘ 40 ( ee )’ international retirement plans , which allow international Guernsey-based Retirement Annuity Trust Schemes to make payments to non-Guernsey resident individuals without deduction of any Guernsey tax . Together with flexible payment options , this makes ‘ 40ee ’ international retirement plans ideal for South African expats , wherever they happen to be living or working . The topic of pensions was also high on the agenda . Sean Gillease , the business development manager for Sovereign Trust in the Channel Islands , offered an overview of international corporate pension plan options for South African nationals employed outside the country , while Matt Tailford , a director in Sovereign ’ s Dubai office , discussed key considerations for British expats and returning South Africans with regard to UK pensions .
ABOUT SOVEREIGN TRUST SA
Sovereign Trust ( SA ) Limited is part of an international group of 26 Offices ( in 22 countries ) and a leading provider of international pension and retirement plans . Sovereign Trust ( SA ) Limited offers retirement solutions from a number of jurisdictions allowing a ‘ best fit ’ approach and optimal tax planning . In addition , Sovereign Trust ’ s personal wealth services will help you to preserve , enjoy and pass on the rewards of your success . For more , visit https :// www . sovereigngroup . com /
58 SEPTEMBER / OCTOBER 2018 SA Real Estate Investor Magazine