The short answer

Before you change a retirement annuity, preservation fund, pension fund or living annuity, ask nine sets of questions: what exactly you have; what you'd gain and lose; what it will cost, including the Effective Annual Cost; how it will be taxed by SARS and in Thailand; whether it gives the income you need; how it affects your family; who you're dealing with and how they're paid; how the money will be invested; and what happens with the rand. Get the answers in writing, compare at least two options, and never act on an unsolicited offer or under time pressure. Lawrence offers a free, independent second opinion.

Why pension decisions deserve extra care

Most of the costly mistakes we see weren't made by careless people. They were made by people who were asked the wrong questions — or none — at a moment when someone else wanted a quick decision.

The decisions South Africans in Thailand most often face

The nine sets of questions below apply to any change. These are the decisions they're most often needed for.

Withdrawing a retirement annuity or preservation fund after emigration

Once you've been non-resident for tax for three consecutive years, you can take the money out. It frees it from the rand and Regulation 28, but it's taxed under the withdrawal table and can't be reversed. The key questions are the tax cost, what you lose in protections, and what you'll do with the money once it's out.

Retiring from a fund

From 55 for a retirement annuity, or under your employer fund's rules. How much to take in cash, and whether to buy a living annuity, a guaranteed annuity or both, will shape your income for decades.

Changing a living annuity

Switching funds, raising the offshore share, changing the drawdown or moving to another provider. Most of these can be revisited, but the costs and the drawdown rate matter a great deal over time.

Buying a guaranteed annuity

With all or part of a fund, or later from a living annuity. It's usually irreversible, so the options — level or rising, single or joint life, a guarantee period — need to be right first time.

Responding to an offer

Someone proposes a new product, a new provider or an overseas scheme. This is when the questions matter most — especially if they contacted you first.

1. What exactly do I have?

• What type of fund is it — retirement annuity, pension, provident, preservation fund, living annuity or guaranteed annuity?
• What is it worth today, and how is it invested?
• How much is offshore, and is it using the full 45% Regulation 28 allows?
• What does it cost each year — the Effective Annual Cost?
• When can I access it, and on what terms?
• How is it split under the two-pot system — vested, savings and retirement components?
• Are there any guarantees or special terms that would be lost?
• Who are my nominated beneficiaries?

Ask the fund for a full statement and the answers in writing. Old employer and preservation funds are easy to lose track of, so check your records carefully.

2. What would I gain — and what would I lose?

Every change has a trade-off. A good proposal sets both sides out clearly.

• If you withdraw after three years of non-residence, you gain freedom from the rand and Regulation 28 — and lose tax-free growth, the more generous retirement tax table, protection from creditors and the exclusion from estate duty.
• If you buy a guaranteed annuity, you gain certainty for life — and lose flexibility, offshore exposure and, perhaps, anything for your family.
• If you change your living annuity's investments, what do you gain in offshore exposure or lower costs — and what risks do you take on?
• If you move providers, what do you gain in cost or choice — and are there exit charges?

If a proposal lists only the gains, ask for the losses. Our guide to retirement annuity and pension considerations for South Africans abroad sets out the main options.

3. What will it cost?

• What is the total yearly cost — the Effective Annual Cost, covering administration, investment management and advice — in rand and as a percentage?
• Are there initial or exit charges, and for how long?
• How is the adviser paid — an upfront fee, an ongoing fee, or commission from the product?
• What will the move itself cost — tax, exchange-rate margins and any transfer fees?
• How do the costs compare with what I pay now?

Costs compound. As the chart at the top of this page shows, a 1% difference in yearly charges can cost about R2.2 million on R4 million over 20 years.

How much charges matter

R4 million growing for 20 years at different returns after charges.

Illustration only, compounded yearly. Returns aren't guaranteed.

4. How will it be taxed — in both countries?

• Which SARS table applies — the retirement lump sum table or the withdrawal table — and what is the estimated tax?
• Have earlier lump sums been counted? Both tables are cumulative.
• Can I see a tax directive estimate before I decide?
• How will the income be taxed — by SARS at source, and in Thailand when I bring it in?
• What does the South Africa–Thailand treaty say about this kind of income?
• Does the change affect my South African tax residence position, or depend on it?

If the adviser can't answer the tax questions in both countries, involve a tax adviser who can. Our tax residence guide explains the rules.

Where to start

An independent second opinion before you sign, and the right accounts and providers if money moves.

5. Will it give me the income I need?

• How much income will it provide, in rand and in baht at a cautious rate?
• Is that income sustainable for thirty years — what drawdown rate does it assume?
• Will it rise with inflation, or stay level?
• Does it meet the visa income rule — ฿65,000 a month — with a margin?
• How flexible is it if my needs change?

Our guide to living annuities and other retirement income explains the options.

6. How does it affect my family?

• What happens if I die — before and after the change?
• Would money pass under section 37C, to nominated beneficiaries, or through my estate?
• Would estate duty apply where it didn't before?
• Is my partner protected — including a Thai partner?
• Do my wills in both countries still work with the new arrangement?

Our guide to financial planning for international families covers protecting a partner across two countries.

7. Who am I dealing with?

• Who approached whom? Be very cautious if they contacted you first.
• What are their qualifications and experience with South Africans abroad?
• How are they paid — and would they be paid more for one option than another?
• Will they put their recommendation in writing, with the reasons and the risks?
• Where will my money be held — with a well-known provider, in my own name?
• Can I speak to the provider directly to confirm the details?

8. How will my money be invested?

• What will it be invested in — and can I see the funds and their charges?
• How much risk does it carry, and does that suit my age and income needs?
• How much will be offshore, in which currencies?
• Is it diversified, or concentrated in a few products?
• Can I sell easily if I need the money?
• Who will review it, and how often?

Be especially careful with unusual, unlisted or "guaranteed high-return" investments. Our guide to investment scams and due diligence explains the checks.

9. What about the rand?

• How much of my retirement money will be exposed to the rand after the change?
• What exchange rate and margin will apply if money moves offshore?
• Can the conversion be done in stages, or at a fixed rate?
• Which allowance or approval will be used to move the money?
• How will I get income into baht each month?

Our guide to currency risk on pension income explains the options.

Questions to ask your current fund or provider

1. What is my fund worth, and how is it invested?
2. What is my Effective Annual Cost?
3. Can I increase the offshore share, and to what?
4. What are the rules for non-residents, and what evidence do you need?
5. What would a withdrawal or retirement cost in tax — can you obtain a directive estimate?
6. Are there exit charges or penalties for changing?
7. Who are my nominated beneficiaries, and how do I update them?
8. Can you pay into a non-resident account?

Good answers — and red flags

What to listen for when you ask the questions.

A general guide. If in doubt, stop and get a second opinion.

The warning signs to stop and walk away

• An unsolicited call, message or email about your retirement money.
• Offers to "unlock" your fund before you meet the rules.
• Guaranteed high returns or "no-risk" investments.
• Pressure to decide quickly, or to keep it secret from family.
• Unusual overseas schemes or investments you can't check.
• Requests to pay money into an account that isn't yours or the provider's.
• Reluctance to put anything in writing.

If you see any of these, stop. Contact your fund directly, and get an independent second opinion before doing anything.

Questions to ask yourself

1. Why am I considering this — and whose idea was it?
2. Do I understand it well enough to explain it to my partner?
3. What problem does it solve, and is there a simpler way?
4. Can I undo it if I change my mind?
5. Will I stay in Thailand — or might I return to South Africa?
6. Have I compared at least two options?

Questions to talk through with your partner

Retirement money is usually a shared future, even when the fund is in one name. Before you decide, talk through:

• What would my partner live on if I died — and for how long?
• Does my partner understand the change, and agree with it?
• Could my partner manage the money — and reach it — on their own?
• Are the nominations and wills consistent with what we both want?
• Where would my partner want to live — Thailand, South Africa or elsewhere — and does the plan still work there?

If your partner is Thai, make sure key documents and contact details are available in a form they can use, and that someone they trust knows how the arrangements work. School-age children in the family? Ask about school-fee planning, or compare schools in our international schools directory.

What a good written recommendation contains

• A summary of your situation and goals.
• What you have now, with values and costs.
• The options considered, including keeping things as they are.
• The recommendation, with clear reasons.
• What you'd gain and lose, including guarantees and protections.
• All costs, including the Effective Annual Cost and how the adviser is paid.
• The tax position in both countries.
• The risks, including the rand, and how often it will be reviewed.

Timing: when to ask these questions

• Before you leave South Africa — while you can still easily deal with funds and banks in person.
• When you cease tax residence, and again when three years of non-residence have passed.
• Before you retire from a retirement annuity or pension fund.
• At each living annuity anniversary.
• After any big life change — marriage, a death, a move.
• Whenever someone proposes a change — especially if they contacted you.

Three real-world examples

Werner: the cold call

Werner, 54, in Pattaya, was called about moving his retirement annuity into an "offshore pension" promising 10% a year. Asking the nine questions showed he hadn't met the three-year rule, the scheme was unlisted and the caller wouldn't put anything in writing. He walked away.

Marietjie: the questions that changed the answer

Marietjie, 60, in Hua Hin, planned to withdraw her R3 million preservation fund. Asking for a tax directive estimate showed how much the withdrawal table would cost her. With Lawrence, she kept the fund, retired from it into a living annuity with a large offshore share, and moved other savings offshore instead.

Andile: the second opinion

Andile, 67, in Bangkok, was offered a switch of his living annuity to a new provider with "better funds". A second opinion compared the Effective Annual Cost of both: the new one was 1% a year more expensive. He stayed, and moved more of his existing annuity into offshore funds.

Your before-you-sign checklist

• I know exactly what I have, in writing.
• I know what I'd gain and lose.
• I know the total cost, including the Effective Annual Cost.
• I've seen a tax estimate for both countries.
• I know how my family would be affected.
• I know who I'm dealing with and how they're paid.
• I've compared at least two options.
• I've had a second opinion — and I'm not being rushed.

Keeping your pensions secure

Use strong, unique passwords and two-factor sign-in on every fund and bank account, keep your South African cellphone number active for one-time PINs, never share those PINs, and use a private, protected connection on hotel, café and condo Wi-Fi.

How we researched this guide

This guide draws on our South African retirement, tax and currency guides and their sources: retirement-fund rules on retirement annuities, preservation funds, living and guaranteed annuities and Regulation 28; the two-pot system; the three-year rule for non-residents; SARS's lump sum tables and tax directives; section 37C; and the Effective Annual Cost disclosure on South African products. The charges illustration assumes R4 million compounded yearly. Checked 23 October 2026. This guide is general information, not personal financial or tax advice.