Does pledging my pension cost me anything?

What the Pension Office charges

Its housing pages and FAQ list no fee for pledging. The MRPS's normal administration fee of 0.5% a year on pre-retirement savings applies whether or not you pledge. Ask your lender whether it charges anything to arrange the pledge.

What it can save you

Some lenders price a loan backed by pledged pension lower, because it carries extra security. HDFC publishes its rates:

On MVR 2.4 million over 25 years, 10.42% instead of 11% is about MVR 1,000 a month less, nearly MVR 300,000 over the loan. Ask every lender whether pledging changes your rate.

What it does not cost

• Your returns. The pledged money stays invested, or the lender pays returns on it. HDFC's accounts show it pays the Pension Office 4.9% a year on these funds.
• Your contributions. They carry on as normal.

What it does cost

• Flexibility. The pledged amount is tied up until the loan is fully repaid, which could be decades.
• Risk. If you default and the sale of the home falls short, the gap comes out of your retirement savings.
• Cash you keep is cash you can use. If you pledge pension instead of paying cash, keep that cash as an emergency fund rather than spending it. That is what protects the pledge.

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.