In brief (TL;DR): South African expats in the UK often have retirement savings sitting in both countries. Understanding how your SA retirement annuity, pension funds, and UK workplace pension interact — and when you can access each — is essential for planning ahead.
South African expats in the UK often have retirement money sitting in SA from years of employment there, alongside whatever they are building up in the UK. Managing savings across two jurisdictions takes some planning, but it is very manageable once you understand what you are working with.
Types of SA retirement savings
Retirement Annuities (RAs): Individual retirement savings plans, similar to UK SIPPs. Contributions are tax-deductible in SA. This is the most common type of SA retirement fund expats hold.
Pension Funds: Employer-sponsored plans from previous SA employment. Many expats have funds sitting untouched from jobs they left years ago.
Provident Funds: Similar to pension funds but with different tax treatment on withdrawal.
Preservation Funds: Used to hold pension or provident fund savings when you changed jobs in SA. These consolidate old employer funds into a single vehicle.
Accessing your SA retirement savings from the UK
Age 55 or over: You can access your RA regardless of your tax residency status.
Under 55, non-resident for three or more years: You can access your RA under the three-year rule once you have formally ceased your SA tax residency with SARS and three uninterrupted years have passed.
Under 55, still a SA tax resident: You generally cannot access your RA early, except for limited savings pot withdrawals under the Two-Pot system introduced in September 2024.
Your UK workplace pension
If you are employed in the UK, you will be automatically enrolled in a workplace pension scheme. UK pension contributions attract income tax relief at your marginal rate, so it is worth making the most of it. Your UK pension and your SA retirement savings are entirely separate — contributing to one does not affect the other.
The SA-UK Double Taxation Agreement
South Africa and the UK have a Double Taxation Agreement (DTA) that prevents you from being taxed twice on the same income. However, the way RA withdrawals are treated under the DTA depends on your residency status at the time of withdrawal. A UK-based tax adviser can confirm your specific position.
Questions about your SA savings?
WBForex can help with the South African side — including RA encashment, the three-year rule, and transferring funds to the UK. Contact WBForex for a free consultation.
