Publications
Partners
HOW can you get your retirement annuity investment to leave the country with you? An expert explains the process.
A Fin24 user writes:
I am about to retire and emigrate back to UK.
I have a living annuity, but have been told that I cannot cash it in and take the proceeds abroad.
I have to select a monthly or annual amount which will be paid into my bank account, which I will then be able to withdraw in the UK.
This means I have to keep my bank account open here for the next few years or until the funds are exhausted. Is there any way round this?
Michelle Möller, head of client services at Sanlam's Glacier, responds:
Legislation prohibits a living annuity which originated in South Africa from being transferred to another financial services provider abroad.
For this reason, a South African client who is emigrating has to leave his/her living annuity with a service provider in South Africa. Transfers to another South African financial services provider are however allowed.
Service providers are obliged to pay an income to the client from the living annuity.
Glacier pays the income in rand, so when a client emigrates he has to keep a blocked rand bank account open in South Africa. The income is paid into the blocked account, from which the funds are transferred to the client’s foreign bank account.
The authorised bank that places the client’s emigration on record is required to submit an exchange control application to the Reserve Bank, requesting permission for the income from the living annuity to be remitted abroad.
The client’s banker will handle all the transfers and charges.
- Fin24
A Fin24 user writes:
I am about to retire and emigrate back to UK.
I have a living annuity, but have been told that I cannot cash it in and take the proceeds abroad.
I have to select a monthly or annual amount which will be paid into my bank account, which I will then be able to withdraw in the UK.
This means I have to keep my bank account open here for the next few years or until the funds are exhausted. Is there any way round this?
Michelle Möller, head of client services at Sanlam's Glacier, responds:
Legislation prohibits a living annuity which originated in South Africa from being transferred to another financial services provider abroad.
For this reason, a South African client who is emigrating has to leave his/her living annuity with a service provider in South Africa. Transfers to another South African financial services provider are however allowed.
Service providers are obliged to pay an income to the client from the living annuity.
Glacier pays the income in rand, so when a client emigrates he has to keep a blocked rand bank account open in South Africa. The income is paid into the blocked account, from which the funds are transferred to the client’s foreign bank account.
The authorised bank that places the client’s emigration on record is required to submit an exchange control application to the Reserve Bank, requesting permission for the income from the living annuity to be remitted abroad.
The client’s banker will handle all the transfers and charges.
- Fin24
