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Paying into Pensions Scheme!

Last updated: 2nd November 2006
Question ID: #2954
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Dear Sir

I would be grateful if you could give me some advice from Islamic point of view regarding paying into a Pensions Scheme.I work for the NHS(National Health Service)where the employees are asked to contribute monthly into a Pensions Scheme for retirement.As the Pension funds are invested in interest bonds and shares and there is also an element of Life Assurance in it,could you pleas tell me whether it is Halal or Haram to keep paying monthly into a Pensions Scheme?If it is Haram due to interest,what other alternatives would you suggest for retirement?

Thanking you


Dr.Khalid Jamil

Bismillahir Rahmaanir Raheem

Al Jawaab Billahit-Tawfeeq

Respected brother/sister

I will recommend you to read the Research Paper below by Al-Qalam on pensions. I am not able to comment on individual companies on pension schemes/funds without studying the contract of the pension fund/scheme in reference, but can give an opinion on the underlying principles.

It is your responsibility to supply the correct information and then apply the principles outlined in the Research Paper below.


And Allah knows best

Answer last updated on:
28th October 2012
Answered by:
Ulamaa ID 12
Location: United Kingdom