Can I use my retirement fund as security for a loan?


Question:

Do banks offer a loan against a divorce settlement of provident fund and, if so, which ones are in South Africa?

Answer:

Tom,

The short answer is no. In terms of the Pension Funds Act, you are not allowed to pledge or cede your retirement fund, or use it as security for a loan (other than a housing-related loan, if the fund rules provide for this).

The information and answers supplied in this section do not constitute advice as defined by the Financial Advisory and Intermediary Services Act, 37 of 2002.


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