Advice and Support for South Africans Immigrating to New Zealand

South Africans Going To New Zealand

Author Topic: Retirement Anuity  (Read 6698 times)

Offline zatexnz

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Re: Retirement Anuity
« Reply #15 on: September 23, 2007, 03:42:19 pm »
I agree, but with the amount of people leaving, they are concerned about those with money taking all the money out that they need to keep the economy going... economy?  What economy?!  ???
lekker sweet as, y'all
~ Colleen

Offline Feather

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Re: Retirement Anuity
« Reply #16 on: September 26, 2007, 04:07:01 am »
Hi all,

We had to leave our policies, we decided to keep them running, the loss was too large.  I have an education policy for the kids in SA.  I stood to loose far to much, now I am paying it from here, it pays out in the next 10 or 11 years.  Transfer funds once a year into the SA account, enough to cover all policies, I think there are 3 of them. 
Then hopefully we can get our money transferred to our NZ account when they pay out.

SA Going to NZ Advice Forum

Re: Retirement Anuity
« Reply #16 on: September 26, 2007, 04:07:01 am »

Offline Johan01

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Re: Retirement Anuity
« Reply #17 on: September 26, 2007, 12:08:12 pm »
money can be paid to New Zealand. There is a tax agreement which means that you will pay New Zealand tax on income but the amount of tax paid in a foureign country eg. SA will be claimable against your tax liability. Meaning that if you would pay $1000 tax on a certain income in New Zealand and you have paid say $700 in SA you will only have to pay another $300. But if you have $1200 ($200) more you will not be able to claim back.

hope you understand the system

Offline Didi77

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Re: Retirement Anuity
« Reply #18 on: September 26, 2007, 01:59:07 pm »
Oh no...... Johan now I am only confused......

The financial stuff is just to much for me....

Basically what you are saying is if we take money over we will have to pay tax on it AGAIN??



Offline Johan01

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Re: Retirement Anuity
« Reply #19 on: September 26, 2007, 02:15:03 pm »
Let me try it this way around.

You are getting R5000 per month. On that your SA tax is R900. So R4100 will be paid to you in New Zealand and at a 5 exchange rate it will be $820.

The tax in New Zealand will be worked like this.

Your R5000 is equal to $1000.  Your R900 tax paid is equal to $180

In New Zealand on $1000 you pay lets say $200 tax.

Because you have already paid the equvalent of $180 in tax in Sa you will only pay another $20 in New Zealand.

But if you have paid more than the equavalent of $200 tax in SA you willnot get a refund in New Zealand. :o :confused:

Offline Didi77

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Re: Retirement Anuity
« Reply #20 on: September 26, 2007, 04:39:29 pm »
Johan I understand. Thanks for explaining. I think I must bring all my financial troubles to you here... you have the knack for explaining... :-)




Badprop

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Re: Retirement Anuity
« Reply #21 on: October 16, 2007, 06:44:42 am »
Please help me understand this correctly.

If you have retirement annuities you pay 30% cancellation fee and you can't take the money out immediately? 

So when can you take the money out.?

And what about Life insurance?  Do you pay penalties on that and can you get the money out?

Our financial adviser is trying to hold onto his commission and I don't think we are getting the best advise from him.  Most of the RA pays out in 25 years only.

SA Going to NZ Advice Forum

Re: Retirement Anuity
« Reply #21 on: October 16, 2007, 06:44:42 am »

Offline Amber

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Re: Retirement Anuity
« Reply #22 on: October 16, 2007, 07:34:50 am »
We were told exactly the same thing.  We are stopping the payments of our RA's immediately, we loose 30% cancellation and we can only get the balance out on retirement - I think the youngest is 55!

IT does not seem fair.
Amber
Faith is to believe what you do not yet see; the reward for this faith is to see what you believe



Badprop

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Re: Retirement Anuity
« Reply #23 on: October 16, 2007, 07:50:12 am »
His ears must have been burning as he just phoned me and gave me all the info I have been begging for.


Retirement Policy:  You pay 15% not 30% anymore and you can get the money tax free.

Retirement Annuity:  Can get money at 55 and 15% cancellation fee.  Money paid out in RSA into bank account and then you can transfer it to NZ bank.

The old policies didn't accrue in capital value and you walk out with next to nothing.  I have 2 from 1999 so write it off.

New policies accrue in capital value and you basically get the money back that you have put in.

We are taking a knock but at least some of them will pay out and can be invested on that side again.

Some of the investments have been in shares and this grows a bit more in value but takes 10 to 15 days to be payed out as the shares must first be sold.

Clear as mud hey?

Offline Amber

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Re: Retirement Anuity
« Reply #24 on: October 16, 2007, 08:39:40 am »
Yes it is (as clear as mud!)
Just tell me rand amounts (Lol)
Our policies are not as old as yours but I know we stand to loose a lot of dough and by the time I am 55 I will be lucky if I can go out for dinner on what I will get becuase of the exchange rate.  But - I really am not worried about that we will just have to start again - I am just looking forward to a better life!
Faith is to believe what you do not yet see; the reward for this faith is to see what you believe



Offline sandyb

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Re: Retirement Anuity
« Reply #25 on: September 18, 2008, 10:07:47 am »
 :clap: Got the following from a financial advisor at Alexander Forbes - there's hope:

Provided you are emigrating officially, through the Reserve Bank, you are allowed to withdraw the benefits in your RA. The withdrawal will be taxed the same as all withdrawals from a Pension or Provident Fund or Preservation Fund. Currently, the first R1 800 is tax free and the balance is taxed at your average rate however these tax rules are changing in the next few months but the Bill hasn’t been made into an Act as yet.






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Offline ANTONK

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Re: Retirement Anuity
« Reply #26 on: September 18, 2008, 04:14:22 pm »
Sandy but the problem lies for those who go's cowboy !!!!
Spoke to my advisor and told me as we are speaking that SARS are in negotiations on this issue and he will keep me posted - at this stage it will only pay out on DUE date  :( (RA) but pension and provident must pay out as you said.
Hope to get an answer before we leave SA  O0

SA Going to NZ Advice Forum

Re: Retirement Anuity
« Reply #26 on: September 18, 2008, 04:14:22 pm »

Offline gleroux

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Re: Retirement Anuity
« Reply #27 on: September 19, 2008, 10:23:40 am »
I received the details of my RA this morning. One knows about the 30% penalties but it's only once you see the actual amount one realise how much it actually is.  :o

So got onto the web to see if what they do is actually legal and found the following.

http://www.persfin.co.za/index.php?fSectionId=593&fArticleId=4609346

Not exactly what I was hoping to find but at least the picture looks significantly better if one can hang on until the new year  :)

Offline Feather

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Re: Retirement Anuity
« Reply #28 on: September 19, 2008, 10:06:01 pm »
That defiantly sounds good.  O0 Think we will wait till next year before making any decisions.  Thanks for that gleroux

Offline johanpet1

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Re: Retirement Anuity
« Reply #29 on: September 19, 2008, 10:56:40 pm »
Thanks for this O0