Fatwa #344664 December 2015United Kingdom
I'd like to know if subscribing for my pension plan will be halal
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.