The World Federation One Stop Fiqh
Search
Menu

Ask an Alim

Khums and Retirement

Q:

A person contributes monthly to a retirement pension fund and at the end of the year, when calculating khums, considers the contributions as an expense. At the age of retirement the person receives a lump sum amount from the pension fund. If the fund is received during ones Khums financial year, is khums applicable on the total amount of retirement immediately on receiving the amount? Or is the khums to be paid at the end of the financial year on the savings which may include any balance, if any, of the retirement funds received?

A:

You will consider it as part of your income whenever you receive it. If you save anything from it in that year, the savings would be liable to Khums. This ruling applies to the mandatory pension.

Ask An Alim