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.
You can however take a bridging loan against a pension fund payout
I like to borrow money in my retirement fund how can I ? Speak to HR or Who must I speak to?
Hi, yes you would need to speak to HR to check the rules of the fund.
I need a house that cost 500.000.i need loan from my pension fund. It is possible to loan it.
One of my clients is going through a divorce and she is entitled to half of the Pension Fund. can she withdraw it from his pension? or how does it work?
Hi Amanda, A copy of the settlement or order will need to be sent to the fund administrators and the administrators will then make the arrangements for the payout.
hey, I would like to know about the new legislation on pension fund act, how is it going to affect my provident fund?
Hi I want to know about that new legislation of pension fund,please reply me !
Hi, please see link below for a full explanation.
http://www.fin24.com/Money/Retirement/govt-explains-how-new-tax-updates-impact-retirement-savings-20160114
I need to knw , if our divorce is pending can my husband make a loan on his provident fund.and what if he makes 5 he loan and do get the money , will I be in title to get my half share of pension fund .I do need assistance
Hi, you should consult your attorney and perhaps ask for a statement from your husbands fund administrators.
Can i surender my retirement annuity
Hi, no, you cannot surrender a retirement annuity unless you are emigrating or the surrender value is under R7500.
Hi admin. In pension backed loans, can I borrow money to pay transfer fees, and attorney fees when buying a home.
The rules are different for the various funds. Please use the search box to find your fund administrator and make contact with them directly.
Can it be possible to get my monthly income in a fixed amount may be I get the money of 7 months so that I can pay the fees for my kids
Hi Grace, you would need to check with the administrators of your fund. Every fund has a set of rules which may or may not allow the members to make loans. Please use the search box on https://www.pensionfund.co.za to search for your fund name and you will find the asministrators information.
Good day,
Please assist. My son’s father still has funds lying in his Pension fund – from a previous employer. He is in arrears with several thousand rands (maintenance of our child). He is currently under Debt review and cannot even make an arrangement to pay-off the arrears. How do I go about getting access to the arrears funds from his Pension Fund value?
Also, is there a way to obtain a court order for future maintenance?
I would like to borrow money from my pension fund,but I’m not willing to resign from my job any time soon,and I want to make long term repauments,is that possible.
Hi, it is possible to borrow money from your pension fund but depends on the scheme rules. It is also possible to use your fund as security for a loan if the rules allow. Find out from the fund administrators what the rules say about loans and security.
Good day administration
I got fired a week ago how can i go about getting a loan on my provident or pension fund for my kids school fees please.
Tx J
Each fund has rules pertaining to loans against the current cash value. Please use the search box in the blue strip on https://www.pensionfund.co.za to search for your fund by name. This will give you the administrators contact info.
Hi can i borrow money from my pension to pay of all my debt?
Can you borrow from your provident fund for house renovations if you are under debt review
can you borrow of your pension fund if you under debt review
Hi, it would depend on the rules of the scheme but in general, this is not a good practise.
I need to borrow money from my pension fund n pay my debt review bcoz I need to buy a house so it is possible?
reality is we all need money nw in this time we cunt borrow because of poor credit police soldiers and most of the law inforcement junior ranks are struggling our salary is fine bt only without our loans allow us to borrow once a max of 250k jst for this year then we replace it within 5years every month for 5years jst to settle loans jst for us to hav control of our finances it is my humble request for all juniors in the lawinforcement of Mzanzi Thank U
my credit score is been poor for more then 8years nw i need to pay/settle all my dept so i want to ask admin if it will be possible to borrow 250k from my pension and what is required and where do i start