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 from the total capital invested in the form of premiums is permitted.”

“There are many types of retirement annuity schemes. In order to determine whether the scheme in reference is permissible or not, kindly forward us the details and contracts of the retirement annuity you refer to.”

“Provident funds or pension funds are of two types: voluntary and compulsory. If the fund was compulsory and you had no option in accepting or declining being part of the fund, then upon retirement, it will be permissible for you to take the money. If an amount from your salary was deducted, that will be regarded as your salary.”

“It is not permissible to participate in the pension scheme, due to the high possibility of the funds being invested in Haraam avenues.”