Retiring in South Africa

23 May 2019

pensionsThinking of retiring in South Africa? The country boasts plenty of perks that make it a lovely retirement destination. We’re listing some of the main things you should know:

-    Cost of living
Retiring in South Africa will not break your bank account. The everyday expenses – which include shopping for groceries and petroleum – are less than you would expect, while enjoying a meal outdoors will cost you anywhere from R100 to R500, depending on if you decide on dining at the nearby pub or at a restaurant of higher quality. Entertainment options are also affordable, whether your idea of entertainment is heading to the cinema or joining a golf club.
Furthermore, housing prices remain to be less than those in most countries. You can anticipate spending around R2 million, often less, for a 3-bedroomed house in a great location.

-    Things to do
South Africa has a lot to offer – from the vibrant city life to the more relaxed destinations. When in South Africa, you will want to explore the coastlines of Durban or Cape Town, hike through the green areas and enjoy a wine tasting experience like no other.

-    Weather perks
If you are eager to experience constant sunshine and a temperate climate, South Africa will be just right for you. Days spent exploring the country’s many natural attractions or lounging by the pool have never been better, thanks to the long, sunny days South Africans are used to experiencing.
What’s even better? You can celebrate the holidays by the beach, seeing as summer begins in November and ends in February, while winter is also mild.

-    Healthcare
South Africa is commended for its private medical facilities. They do come at a price but are certainly reliable. Unfortunately, the same cannot be said for public healthcare, as just like many other countries, public facilities are far too busy and understaffed.
 
-    Taxation
Tax in South Africa is based on residency and where your home is. It is imposed on worldwide and source-based income, however, foreign pension income will not be liable for South African tax. It is also worth noting that the capital gains tax is rather low.

-    Currency
Like with any other country that has a currency differing to yours back home, the exchange rate must be taken into consideration when planning your finances. However, this is especially so when living in South Africa, as the rand is a volatile currency and could have an impact on your lifestyle.

-    Planning your finances
Finally, it is important to plan every aspect of your finances when retiring. There are plenty of factors to take into account, such as what benefits you will receive and how your pension will be affected. Therefore, speaking to a financial adviser prior to your move will benefit you greatly.

Contact deVere Acuma South Africa for expert financial advice!