So here is a different take on it. Interesting and needs to be explored by everyone with a pension.
www.linkedin.com/posts/mufti-amjad-m-mohammed-b61a5b48_ha...
Mufti Amjad M Mohammed
Chief Shariah Officer at multiple financial institutes
The Riba in Your Pension: Is Your Retirement Plan Halal?
We diligently contribute to our pensions for decades, dreaming of a secure retirement. But for many Muslims, this safety net is woven with strands of Riba.
Most conventional workplace pensions are automatically invested in funds that include:
Interest-bearing bonds.
Shares of companies involved in haram activities (alcohol, gambling, conventional banking).
This means your retirement wealth is growing through a system you strive to avoid.
Taking action is essential for a halal retirement:
- Consult a Specialist: Speak to an Islamic financial advisor.
- Switch Your Pension Fund: Many employers offer a "Sharia-compliant" fund option. This fund screens out unethical companies and uses Islamic finance principles (e.g., profit-sharing instead of interest).
- Self-Invested Personal Pension (SIPP): For more control, open a SIPP and choose your own Sharia-compliant investments and ETFs.
- Alternative Investments: Consider other wealth-building strategies for retirement, such as property investment through halal means.
Ensuring those plans are halal is an obligation. Don't let 40 years of hard work be tarnished by a non-compliant pension.
To benefit others on pension schemes, please share your findings to try and make it as Halal as the food we eat and make it Riba free and help others with their Zakat queries because theres plenty more to share on Pensions. (Zakat on Oensions is very tricky and each will have their own responses as per their pension)
