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Pension Investment Options


Salaamun Alaikum,
Hope you are well. As you are probably aware, most corporate companies now offer pension contributions to it’s employees. I work for a company where it contributes towards my pension fund if i contribute towards it too. A certain amount from my salary is therefore taken out from my salary and put in a pension fund which I cannot withdraw until retirement age.

The money from this fund is then invested on behalf of me to yield return when i retire. The problem here is that I do not know where the money is invested in terms of Company/Industry. I don’t know if it’s invested in something non-Islamic for example alcohol companies. It may not be but because I don’t know this, Is it permissible for me to carry on being part of the pension scheme and continue contributing my money in it whilst I don’t know?



Wa Alaykumussalam

Thank you for your question

Alhamdulillah, Hope you are well too.

If the company or the government deducts the money from your salary and save it for your pension then it is not necessary to check where they are using the money but if you are sure they are investing in Haraam then you must refrain from doing so.

But you will have to pay Khums on the particular amount. Read the rulings regarding “The One-Fifth Tax (Khums)” on:

May Allah(swt) grant you success


Syed Haider