Question:
Do I have access to my pension before retirement and while still working? If yes, do I receive it in the form of a loan that will have to be paid back?
Answer:
Pauline,
You cannot access your pension fund while working for the sponsoring employer. You would have to resign, to do so. The Pension Funds Act (s19(5)) does permit loans, but only for very specific purposes, which are essentially housing-related. Your fund rules must however permit such loans, so you would have to check with your HR department. The loan can be an actual loan, or it can be in the form of a guarantee for a (housing) loan given to you by a bank. You can settle this loan on withdrawing or retiring, or it will be deducted off your fund pay-out. But you cannot borrow from your pension fund for non-specific purposes, or for paying off your credit card debt or settling municipal debt.
