We are often asked if a fund member can borrow from the fund that they contribute to or use the fund as security against a loan from a financial institution.

You cannot use your fund as security under any circumstances. This is specifically laid out in the Pension Funds Act.

If your fund rules permit, you may borrow from the fund but this is restricted to borrowing money for your primary residence and other than that, the only time you have access to your fund is when you retire or resign.

The interest on a loan from your pension fund is determined by the fund administrators.

Be aware, there are very special circumstances under which a loan for property related uses can be made and the funds rules must allow for it. It must also be remembered that a pension fund is not a bank and unless your personal fund has enough value, you will not be able to loan more than that.