SA Retirement Reforms and getting your pension money out

[Tiermelk]

Just posting this for anyone reading this thread in the future.

 

The update from 10x on this saga. 

 

Confirmed: ex-pats must emigrate “financially” to withdraw their RA
The 2015 Tax Law Amendment Act introduced
a change to the Income Tax Act that effectively
allowed individuals to withdraw a lump sum
from the retirement annuity fund without going
through the formal financial emigration process.
The definition of “retirement annuity fund” instead
provided that individuals could withdraw a lump
sum from their retirement annuity fund when:
1. the individual ceases to be tax resident; or
2. the individual leaves South Africa at the
expiry of the work visa contemplated in the
Immigration Act, 2002.

This was not the policy intention, however, and
it created a loophole for South African nationals
or tax residents to withdraw early from their
retirement annuity funds, without formally
emigrating.

To make the policy intention clear, the definition of
“retirement annuity fund” in section 1(b)(x)(dd) is
to be amended to include the requirement that an
individual must emigrate from the Republic, and that
emigration must be recognised by the South African
Reserve Bank for purposes of exchange control,
for individuals to withdraw a lump sum from their
retirement annuity fund. The proposed amendments
are deemed to have come into effect on 1 March
2016 and applies in respect of years of assessment
commencing on or after that date.

[Marcodasilva]

Thanks @Tiermelk, its such a pain in the back side. We have under a 100k between my wife and i in the two RA's and i think its not worth madness to get them released as we prepare to leave for Aus.

 

Its a way of the investment companies and Reserve Bank forcing people to keep their money with them and in SA.

[Tiermelk]

16 hours ago, Marcodasilva said:

Thanks @Tiermelk, its such a pain in the back side. We have under a 100k between my wife and i in the two RA's and i think its not worth madness to get them released as we prepare to leave for Aus.

 

Its a way of the investment companies and Reserve Bank forcing people to keep their money with them and in SA.

 

Have a look at 10x.co.za.  My Sanlam RA fees were around 2.5% with 10X the fee is under 1%.  

[Marcodasilva]

Thanks will do