By: Amos Kambonde
The question of whether to borrow from one’s pension or not is one of the questions many members of pension funds ask regularly.
Section 19(5) of the Pension Fund Act, 1956 (Act No. 24 of 1956) makes provision for members of pension funds to borrow either directly or against their pension fund savings for the purpose of purchasing residential immovable property such as a house, land, doing renovations on existing residential immovable property or making a deposit towards a home loan.
However, such a loan can only be if the rules of the pension fund allow it.
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