Question:
Good evening, I urgently need to know can I borrow money from my pension fund to settle my debt or, alternatively, is there is a company that will borrow me money and have me sign a cession for the amount borrowed, to be repaid once I retire. Let me know, thank you.
Answer:
Hi Jacky,
You are only permitted to borrow money from your pension fund if a) the fund rules permit this, and b) the loan is for housing-related purposes (to purchase a home or settle a loan iro a property you and/or your financial dependants live in - refer to s19(5) of the Pension Funds Act for restrictions).
Further, in terms of s37 of the Pension Funds Act, NO pension benefit is "capable of being reduced, transferred or otherwise ceded, or of being pledged or hypothecated".
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.
