Preserving vs cashing in

Rajesh asks:
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?

Maya replies:
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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