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Knew This Was Coming....


bundyman

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They have been talking for a number of years about the pension funds. I didnt think it would ever come, and I certainly didnt think it would go fast - but seeing how fast and furious they got the Protection of Information Bill voted in on Tuesday, and how they are now disciplining those who did not vote, Im getting worried about my own pension fund.

Ironic that they mention than pension funds would probably have to buy bonds from state-owned companies such as Transnet, where Transnet is continually in the news about how bad their payouts are and in what trouble the pension fund is.

Nationalising every thing they see!

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I think they have also been talking about changing the rules on being able to take your pension out before retirement - we wanted ours out and here rather than there.

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I'm surprised it took so long. I was predicting it in '98.

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Im getting worried about my own pension fund.

Thankfully we just got ours out a few weeks ago - even got a SARS refund... thumbup.gif I guess those days will soon be over, so if ppl are still sitting on funds in RSA, my suggestion is, get it out ASAP!

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Have to say that I'm a bit edgy about this too. Have my RA which I can only get out once we have PR. Now just to get our company finance director to get his A into G with the training budget so that the company can lodge the nomination and our application.... :unsure:

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Thankfully we just got ours out a few weeks ago - even got a SARS refund... thumbup.gif I guess those days will soon be over, so if ppl are still sitting on funds in RSA, my suggestion is, get it out ASAP!

What are the tax implications, and do we need to put it into a Supa in Aus. The wife & I have PR .

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Hi Short&Tall - have you been able to get your RA out of SA? This is a major concern of my hubby's as his has been growing for over 20 years and he doesn't want to lose it. Any thoughts?

I think they have also been talking about changing the rules on being able to take your pension out before retirement - we wanted ours out and here rather than there.

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How Riekie?

Thankfully we just got ours out a few weeks ago - even got a SARS refund... thumbup.gif I guess those days will soon be over, so if ppl are still sitting on funds in RSA, my suggestion is, get it out ASAP!

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Had a look back at historical exchange rate of the Rand vs the Aussie Dollar. In 1994 the rate was in the region of R2,80 for a Dollar vs the R8,50 of recent times. This alone is enough reason to move funds from SA to Aus.

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There is a huge political risk in RSA

Over the last 20 years, 1 Jan 1990 to 31 December 2010.

Adjusted for inflation AUD 100 000 (in 1990) is the equivalent of AUD 167 239 (in Dec 2101). In 1990 you got an exchange rate of 2.1852, so ZAR 100 000 was worth AUD 45 762

In 2010 the exchange rate was 6.76. ZAR 100 000 in 1990 is worth ZAR 421 571 in 2010, adjusted for inflation. ZAR 421 571 is worth AUD 62 362 at the end of 2010. But it needs to be worth AUD 167 239. There is a shortfall of AUD 104 876.

Another way of putting it is that the ZAR/AUD exchange rate should only have moved from 2.18 to 2.52 to adjust for the differences in inflation. There is a whopping 268% attributable to the perceived risks between the two countries.

There have been a number of events between those 2 dates. There has been a change from an apartheid government to an alternative government in RSA. This should have reduced risk, not increased it. There has also been a relaxation of exchange controls in RSA, so maybe the exchange rate in 1990 was artificially high.

In the meantime risk between Australia and RSA appears to have increased in 2011. (AUD/ZAR 6.76 to 8.30) This I can well believe, with the political turmoil in RSA.

The question people need to asses is, do they believe the discount will increase or decrease. I know which side I've got my money on.

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Hi Short&Tall - have you been able to get your RA out of SA? This is a major concern of my hubby's as his has been growing for over 20 years and he doesn't want to lose it. Any thoughts?

No I don't think it was an RA we moved just pension savings.

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In the meantime risk between Australia and RSA appears to have increased in 2011. (AUD/ZAR 6.76 to 8.30) This I can well believe, with the political turmoil in RSA.

The question people need to asses is, do they believe the discount will increase or decrease. I know which side I've got my money on.

We moved funds this year and have been watching the exchange rate. I moved some of my savings before my OH (I had nearly delayed in case the rate got better) a few months later OH moved some of his savings the rate was worse - he also wondered whether to wait until it got better. We moved some more funds a month or so later and again we wondered whether to leave it as it might get better. Each time it got worse - the last lot we transferred at something like 7.5 and a month or so later it was at 8.5.

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