Pledge, not withdraw: how the MRPS housing benefit actually works

Many people describe it as "using your pension to buy a flat". Strictly, the Maldives Retirement Pension Scheme (MRPS) does not release pension savings for housing at all.

What the Pension Office says

The scheme exists "as opposed to releasing a portion of members pension savings for housing". Members instead pledge (collateralize) money in their Retirement Savings Account (RSA). This "removes the burden of paying downpayment to secure a loan". The Pension Office says the design keeps the depletion of savings minimal and ensures continued growth.

Two ways lenders hold the money

The housing page says that, depending on the lender's preference, the pledged money either:

• stays invested through the MRPS, ring-fenced against your loan; or
• is released to the lender, which must pay returns on it at regular intervals until the loan is repaid.

HDFC's accounts show the second route in practice. HDFC pays the Pension Office 4.9% a year, every six months, on pension funds placed with it for home buyers.

Why it matters

• Your retirement savings are not spent. When the loan is repaid, the money and its returns go back to your RSA.
• But they are at risk. If you default and the sale of the home does not clear the loan, the shortfall comes from your pledged savings.
• They are locked. The pledged amount stays tied to the loan until it is fully repaid.

The rest of your pension

The MRPS is a defined contribution scheme. Employees and employers each pay at least 7% of basic salary, 14% in all. Savings are invested in treasury bills, fixed deposits, equities and bonds, with a Shariah portfolio for members who choose it. The administration fee is 0.5% a year before retirement. Normal withdrawals start at 65, or 55 for those who qualify. Before retirement, the savings can also be used for Hajj and, since the Sixth Amendment to the Pension Act (in force 21 May 2026), drawn early for a terminal illness. The same amendment extends the housing pledge to loans to build or renovate a house, once its regulations are published; see Pension savings can now back loans to build or renovate a home.

Pension Office: hotline 1441, Viber 733 1441, info@pension.gov.mv, pension.gov.mv. Your pledgeable amount is on your RSA statement, in the Pension mobile app and on the website.

From the Maldives Pension Administration Office's own housing pages, FAQ and leaflet, read on 18 October 2026. Your lender's terms decide the rest; confirm them before you commit. General information, not financial advice.