Darul Iftaa Mahmudiyyah

I'd like to know if subscribing for my pension plan will be halal

· 22 Safar 1437 AH1 min readFatwa 34466English

Question

I'd like to know if subscribing for my pension plan will be halal. Now, I realise you'll be required to go know the inner details, but I can't attach anything to send you all the information you'll need to make a decision.

Please acknowledge my request, and I shall send over the material.

Answer

in the Name of Allah, the Most Gracious, the Most Merciful.

As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh

Conventional pension plans are impermissible since the majority of the funds are invested in Non-Shariah Compliant companies. Furthermore guaranteed pension benefits are impermissible. There are other impermissible elements within conventional pension schemes. We advise you to search for Shariah Compliant alternatives in the United Kindgom. We are happy to review the documentation and advise further.

And Allah Ta’āla Knows Best

Ismail Desai,

Darul Iftaa

Checked and Approved,

Mufti Ebrahim Desai.

Answered by
Ismail Desai
View original Compare with other Darul Iftas
Questions about this ruling, answered only from the archive with sources.

Where scholars differ, it’s safer to take the more cautious view.

Fatawa SA is an independent, read-only index of fatawa already published by Darul Iftaa Mahmudiyyah. It is not a fatwa service. For your own situation, please ask a Mufti. Report an issue

For corrections or mistakes, please email us at fatawasa786@gmail.com.

Source: Darul Iftaa Mahmudiyyah — https://askimam.org/public/question_detail/34466
Fatawa SA: https://fatawa.co.za/fatwa/askimam-34466

People also ask

Are pension funds and retirement annuities permissible?

“We are not aware of any provident fund policies that are Shariah compliant, hence one should refrain from voluntarily subscribing to a provident fund. If one has already subscribed to a voluntary provident fund, then benefitting…”

Ibn Masood · 135 fatawa from 8 Darul Iftas on this

What the Darul Iftas say

Related fatawa