Preserving vs cashing in
I am currently employed and I have a pension and provident fund that I contribute to. I am thinking of relocating to the UK and would like to know if the fund will carry over or do I have to withdraw them?
If you are moving with your company then there may be an option to transfer your funds but you would need to speak to the company.
If you are moving to a new company you are allowed to cash out your retirement funds and take them with you and invest overseas.
However, I would only recommend this if you were planning on formally emigrating.
If you plan on returning to South Africa then you should rather transfer the funds to a preservation fund, in this way you will not pay any tax and you will ring-fence these funds for retirement.
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