Alexforbes
Alexforbes offers South Africans opportunity to save for retirement offshore
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South African residents wanting to augment their retirement savings with an offshore pension plan can now use an efficient retirement solution with estate planning benefits from Alexander Forbes.

Alexander Forbes’ International Personal Pension Plan (IPPP) is an offshore vehicle held in trust. It allows South African residents between the ages of 18 and 75 to save for retirement using funds that can be transferred offshore through their personal annual allowance or funds already held offshore.

“It is now possible to boost one’s retirement savings outside of the tax-deductible annual maximum of R350 000, allowing one to accumulate savings in an offshore jurisdiction taxfree without financial emigration, and with protection from creditors,” said Shivesh Maharaj, Head of Product Development at Alexander Forbes. “It is an impactful efficient retirement and estate planning tool as well as for clients who have maximised available tax allowances to existing retirement savings vehicles.”

The key purpose for taking out an IPPP should be to save in an offshore pension. In terms of Regulation 28, South African retirement funds can invest up to 30% offshore (with a further 10% allowed into African countries outside South Africa). The solution allows individuals to increase their total overall offshore exposure beyond this using a tax-efficient offshore vehicle. There is a minimum investment requirement of $50 000.

“It is a retirement solution which can help improve or achieve a member’s retirement outcomes by assisting in structuring retirement plans tax efficiently and across generations, with access to a range of collective investment options,” Maharaj said. The IPPP is an individual international Jersey- pension plan approved under Article 131C of the Income Tax Act (Jersey) Law 1961, and regulated by the Jersey Financial Services Commission.

For more information and to find out how the Alexander Forbes IPPP can benefit you, visit https://connect.alexanderforbes.co.za/ippp

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Retirement
Savings