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Is My Pension Halal? A Really Really Simple Guide | IFG

We get this question a lot – particularly since we launched our #wheresmymuslimpension campaign.

People are not sure if their pension is actually halal or not.

So here’s a really really simple guide to help you navigate this.

Step 1

Are you in a public sector job?

Yes – great your pension is almost certainly halal as it will be a defined benefit (also called final salary) pension. Just double-check with your HR team on this and confirm that this is indeed the type of pension you have. If they tell you you have a defined contribution pension then you need to go to step 2. Otherwise you’re done.

No – okay read on.

Step 2

Do you know what pension funds your money is in?

Yes – okay great. Go to Step 3.

No – find out. Ask HR. Login to your pension portal. Dig out the papers you got send when you first joined. Do what you have to do.

Step 3

Does the pension fund your money is in have “islamic” or “sharia” in the name?

Yes  – Great you have a halal pension. All done.

No – You probably don’t have a halal pension. Go to Step 4.

Step 4

Can you log on/call someone and switch to an Islamic fund?

Yes – do that.

No  – ask HR to add an Islamic fund to the workplace pension. If they agree, great. If not, read on.

Step 5

This is where the boxing gloves and legalistic emails come out.

You can try first yourself – tell them that the employer needs to make sure you are properly provided a pension and without an Islamic pension they are doing something against the law. Also, it is contrary to the Equality Act 2010 and a case of indirect discrimination.

We have now paid £10,000 for a top pension barrister QC to issue a legal opinion. Print that off and give it to your HR/employer and tell them that they are legally obligated to make halal pension provisions for you.

For context, the Barrister who issued this legal advice is one of the foremost authorities in pensions law in the UK. What he says on this subject has real credibility.

  1. We paid £10,000 for this legal opinion as we think it is that important for the Muslim community. If you would like to contribute to this cause – that will save Muslims £13bn in the next few decades – then please feel free to donate your little bit. £20, £50, or £150.

If that legal opinion doesn’t work, drop us a line. We’ll help iA.

Step 6

Once you have a halal pension, buy some rasmalai and send it to us.

Further reading:

Is my Workplace pension halal?

7 Comments

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7 Comments. Leave new

  • Abdoulie Sanneh
    January 29, 2021 2:39 pm

    It is important that we have halal pension. We should be given an option by the government

    Reply
  • Salaam
    What if one is in the private sector I.e finance sector and is in a defined benefit (also called final salary) pension.
    Does the same apply I e halal

    Reply
  • Thank you this was a great place to start. I would say it’s definitely worth doing the digging around and finding out more about what your pension provider offers before contacting your HR.
    For anyone with The People’s Pension they actually offer a Shariah fund you can put your money in to. To do this you need your online login details. Once you’re in, find the ‘manage’ button to manage your pension, then select ‘investment options’ and then choose ‘self-select’ under Investment Profiles. You will then have a list of places you can invest your money, select the shariah option. You will need to put 100% into this fund and don’t forget to click the ‘save’ button.
    I’ve just made my pension halal and I’m over the moon. Thank you IFG!

    Reply
  • Is this only for the UK or also for Europe? Because my pension fund (medical field, from The Netherlands) does not give us the option to choose the invested funds ourselves. I asked the HR and explained the situation but they told me that everyone in this pension fund gets the same investment in the same things. I checked these and obviously not all invested funds were halal… Any suggestions on what to do?

    Reply
  • Salam, the pension fund is hsbc amanah so should be halal according to this, however in another article you have stated apple stocks are not halal which are invested in?

    Reply
  • Jazakallah. Would the NHS pension fall into the halal aspect? Under the NHS 2015 Pension.

    Reply
  • I have dipped out of my civil service pension as I wasn’t sure if it was halal. My assumption was since I don’t know what they are investing in it may be unethical… Have i got the wrong end of the stick? Can someone advise, is the civil service pension halal?

    Reply

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