International Pension Plans
for South African Residents

40EE Schemes

If you’re a South African resident who is planning for retirement, an international pension plan (IPP), also known as a 40EE plan, is an efficient and flexible pension solution. They are used by people who have or are looking to move financial assets overseas which are currently in South Africa.

Who are they for?

Schemes are available for anyone looking to hold assets overseas or mobile individuals who may be moving overseas and can use one pension fund based in a suitable jurisdiction, throughout their working life and retirement. 

Scheme location

An IPP is established in a jurisdiction such as Guernsey which would not be to the resident country of the individual with the scheme.

Guernsey enjoys a reputation as a financial centre of excellence for pension schemes. International pensions have been managed on the island for over 30 years and local providers have a high level of expertise.

Protection

Funds using locally focused investments can provide ongoing income but may not protect against:

  • Ongoing high levels of inflation and the risk of hyperinflation sometimes associated with the rand
  • Ongoing concerns over political instability and property rights
  • Changes to the tax code

Benefits & Advantages of a 40EE

Establishing an invested portfolio outside of South Africa may provide the following benefits:

  • Continued access to income and capital from your assets
  • Investments and growth in major, hard currencies unrelated to the rand
  • Investment flexibility – tailored around your requirements  
  • No obligation to purchase an annuity on retirement  
  • The entire fund can be paid out as a lump sum
  • No restrictions on contributions 
  • No limits to the value of the fund which you have accumulated 
  • Tax structuring opportunities to ensure you and your heirs benefit fully from the wealth you have accumulated
  • Securing funds that have been taken outside of the country through exchange control

Find out more

You may be someone who already holds or wants to set up an investment account outside of South Africa but is finding it increasingly difficult to transact with your current investment manager due to regulatory constraints. 

With our truly international investment portfolios for South African residents, regulated within the framework of the FSCA, Brite can help you review your options and provide the ideal solution.

Contact us today to get started.

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