It is not only difficult to leave the family and friends behind; it is also tough to handle the guilt trips people dump on you. This can range from “you’re not a Christian if you emigrate due to security” to “you’re a racist” or “we’ll stay behind until the end, you run…” The fact is, we just want to do what is best for our family, no hidden agendas!
Strangely, over the last couple of years, sentiment has changed a great deal. So many people have told us that we are fortunate the have the opportunity and given the chance, they would do exactly the same! It still doesn’t make it easy.
There are so many uncertainties – how does the school system work? – will we be able to fit in their culture? – will we be able to maintain a good standard of living?
Talking about standard of living, what will our retirement look like? Luckily legislation changed two years ago and one can now withdraw your South African retirement annuity before the age of 55. In Africa nothing comes easy, and this process can feel worse than a bad year at the dentist. The documents you’ll be required to submit at SARS are: Tax clearance certificate, Tax directive, Proof of migration (of your tax status, not your citizenship), supporting documents, etc. You also need a blocked account and assistance with the forex transaction.
It just makes sense to get a professional to assist you in withdrawing your money from your South African retirement annuity. This person or institution should however be a tax specialist (for example a chartered accountant) as well as a registered financial planner in order to assist you with the tax issues involved as well as your insurance issues (retirement annuity, life policy, endowments, shares, etc). It also makes sense that these professionals have a South African footprint. A presence to sort matters out with SARS on a face to face basis is essential. Did I mention that the Reserve Bank must recognise your migration? Whew!!
Taking enough money with you when you are emigrating helps sort out many of the uncertainties, therefor you need to take all that you can. One of the reasons why you should take as much cash as possible with you is to give yourself the opportunity to manage your investments (and their return) which is very difficult to do if you are thousands of kilometres away from your investments.
Risks such as the strength of the currency as well as economic and political factors should also be taken in consideration.
Cashkows.com will take care of a lot of your headaches in the early withdrawal of retirement annuities in South Africa, one less uncertainty in your migration…
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