If you’re a South African planning to emigrate, one of the most common questions is: What happens to my retirement annuity (RA), pension, or provident fund? The answer depends on your residency status, tax emigration status with SARS, and whether your funds are preserved or withdrawn after you leave.
Understanding how your retirement savings interact with emigration rules can help you avoid unnecessary taxes and delays — and ensure your funds are accessible when you need them abroad.
1. Understanding the link between emigration and retirement funds
Prior to March 2021, South Africans could withdraw their retirement savings after completing formal financial emigration through the South African Reserve Bank. This process has now been replaced with tax emigration, meaning that SARS — not the Reserve Bank — determines your non-resident status for tax purposes.
Once you’ve successfully completed tax emigration, you may be eligible to withdraw your RA or preservation fund after maintaining non-resident status for three consecutive years. Apostil’s detailed guide on Tax Emigration for South Africans explains how this updated rule applies in 2025.
2. Withdrawal rules for retirement annuities
If you’ve emigrated and become a non-tax resident, you can apply to withdraw your retirement funds early — but only if you’ve been tax non-resident for at least three years. The withdrawal is then subject to a lump-sum withdrawal tax, which ranges from 0% to 36%, depending on the amount.
You’ll need the following supporting documents for SARS and your fund administrator:
- Tax Non-Resident Confirmation Letter from SARS
- Proof of foreign residency (utility bill, residence permit, or foreign tax certificate)
- Copy of your passport and proof of departure
- FIA declaration and bank confirmation for international transfer
If your fund administrator requests verification, Apostil can assist with the retrieval and apostille of your tax and financial documents, ensuring they’re accepted by financial institutions worldwide.
3. What about preservation and pension funds?
If you hold a preservation fund and haven’t already made your one-time withdrawal, you can still do so before your tax emigration is finalised. Once you become a non-resident, you’ll follow the same three-year rule before any further withdrawals.
Pension and provident funds, on the other hand, can typically only be accessed at retirement age (usually 55), unless your employer closes the fund or you qualify under special provisions. It’s crucial to consult both your fund administrator and SARS to ensure your withdrawal doesn’t trigger double taxation abroad.
Our article on Maximising Tax Efficiency When Transferring Money Abroad offers strategies to reduce tax leakage during international transfers.
4. The importance of SARS tax clearance
Before any offshore transfer, you’ll need a Tax Compliance Status (TCS) – Emigration pin from SARS. This certificate verifies that you’ve met all local tax obligations and confirms your non-resident status.
Without this clearance, your fund administrator cannot release or transfer your money. Apostil works closely with SARS documentation and can help ensure your financial emigration paperwork is properly legalised for overseas use.
5. Transferring your funds abroad
Once SARS issues your clearance and your withdrawal is approved, the proceeds can be transferred into your foreign bank account. South African banks will still require proof of tax emigration and proper FICA compliance before processing the international transfer.
Depending on your destination, you might also need to apostille your financial or bank documents for verification by your new financial institutions.
If you’re moving to a non-Hague country (like the UAE or Qatar), you’ll need embassy authentication instead of an apostille.
6. How exchange control has changed
Previously, emigrants were subject to strict exchange control rules managed by the South African Reserve Bank. These have now been abolished, simplifying the process. Today, all foreign transfers related to retirement funds fall under SARS and your authorised dealer bank.
However, if you’re moving large sums abroad, it’s still advisable to consult a qualified tax specialist to ensure compliance with both South African and foreign reporting laws.
7. Documentation you’ll need to legalise
A successful transfer or withdrawal typically requires several key documents to be correctly legalised:
- Unabridged birth certificate (apply here)
- Proof of tax non-residency (from SARS)
- Bank confirmation letter (apostilled for use abroad)
- Marriage certificate, if relevant (get it apostilled here)
- Letter of Authority or Power of Attorney if someone in South Africa manages your affairs (legalise it here)
Apostil can collect, expedite, and courier all these certificates directly to you, even if you’re already overseas — saving months of back-and-forth with Home Affairs and financial institutions.
8. Timing considerations
Timing is critical. If you’ve only recently emigrated, you’ll need to wait three full years before you can withdraw your retirement annuity. During this period, keep your local contact details updated with your fund administrator and maintain your SARS profile.
Once the three-year period ends, you’ll need to submit proof of continued non-residency before withdrawal. Apostil’s Tax Emigration Checklist outlines exactly which documents to keep ready for this stage.
9. Can you keep your RA active while living abroad?
Yes. If you prefer to keep your RA or annuity invested in South Africa, you can simply continue as a non-resident investor. However, you can no longer contribute to your South African retirement funds once you’ve become tax non-resident. The fund will continue to grow, and you can access it at retirement age — subject to local and foreign tax laws at that time.
10. How Apostil simplifies the process
Navigating the legal and administrative steps of financial emigration can be overwhelming. Apostil helps South Africans abroad with:
- Document retrieval from Home Affairs, SARS, and financial institutions;
- Apostilles and embassy authentications for all financial records;
- Courier delivery to over 120 countries;
- Guidance on timing, compliance, and document validity.
Learn more about our Financial and Tax Emigration Services and how we can help streamline your transition.
Final thoughts
Emigrating doesn’t mean losing access to your hard-earned retirement savings. With the correct paperwork and careful tax planning, you can transfer or maintain your funds legally and efficiently.
Whether you’re applying for tax non-residency or preparing to withdraw your RA, Apostil ensures that every supporting document is authenticated, apostilled, and ready for international acceptance so your financial future abroad remains secure.
