# Does pledging my pension cost me anything?

> The Pension Office charges no fee for the housing pledge that we could find, and the money keeps earning. Some lenders even price pension-backed loans lower: HDFC charges 10.42% against 11%, about MVR 1,000 a month less on MVR 2.4 million. The real costs are risk and lost flexibility.

Source: Maldives Real Estate News, published by Binga Properties. URL: https://news.binga.mv/pension-pledge-does-it-cost-anything
Published: 2026-10-18T15:57:47.286Z · Updated: 2026-10-18T15:57:47.286Z · Event date: 2026-10-18

## 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:

| HDFC home purchase | Rate |
|---|---|
| With pension pledged | **10.42%** |
| Salary or business income | 11.00% |
| With rental income | 12.25% |

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.*

## Sources
- pension.gov.mv/en/housing (Pension Office, MRPS Housing Benefit, read 18 October 2026) (https://pension.gov.mv/en/housing (Pension Office, MRPS Housing Benefit, read 18 October 2026))
- pension.gov.mv/en/faq/housing (Pension Office, housing FAQ, read 18 October 2026) (https://pension.gov.mv/en/faq/housing (Pension Office, housing FAQ, read 18 October 2026))
- pension.gov.mv/en/faq/mrps (Pension Office, MRPS FAQ, read 18 October 2026) (https://pension.gov.mv/en/faq/mrps (Pension Office, MRPS FAQ, read 18 October 2026))
- hdfc.com.mv/conventional-facilities/home-purchase (HDFC, read 18 October 2026) (https://hdfc.com.mv/conventional-facilities/home-purchase (HDFC, read 18 October 2026))
- hdfc.com.mv/api/resource-downloads/file/HDFC-Annual-Report-2024.pdf (HDFC Annual Report 2024, note 25.6) (https://hdfc.com.mv/api/resource-downloads/file/HDFC-Annual-Report-2024.pdf (HDFC Annual Report 2024, note 25.6))

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