One of my clients has returned back after 5 years in the United Kingdom in the 1990s. He was working and has contributed to the National Insurance in the UK. He was told that one day turning 65 years he will get a UK pension. He is indeed receiving it now and South Africa does not tax him on a foreign pension!

On leaving he heard that he could keep on contributing till retirement age, this way he could in total contribute 15 years to the UK National Insurance and he is now receiving the benefit. The UK works on 30 years contribution and he is now getting 50% of a UK pension. The number of contributions paid was about what he is now receiving in one year.

If you are leaving the UK or any other European country you should investigate what your rights are and if you could benefit by making any further contributions.

You are welcome to contact Fanus Jonck before returning to South Africa for other tax and investment advice – fanus@jonck.net