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Am I allowed to use my pension?

Fatwaa ID: 1916

Question:
Assalamualaikum wr wb respected mufti sahib,

When my father was alive he was a physician and had prepared a pension for me. He passed away when i was ten and I started receiving this pension monthly since i was 18. Now 10 years have passed and during this time I have been using this money mostly on personal expenses and to take care of my mother. A few years ago i strengthened my connection with Allah swt and also got married. I came to hear that pensions are haram. Inside i am constantly in a battle with myself and confused what to do about this. My mother will never live with my husband and I as I am a second wife and we have 8 kids between us. She also receives social security from the state for being a senior and receives rental income from renting her basement however the amount is not enough to cover the cost of living along with taxes that go with her house. My husband does not allow me to work. Please inform is receiving my fathers pension haram? And if it is what do i do to rectify this as many years have passed. I have not had the courage to ask this question till now as my faith has been slowly increasing. I have no siblings to take care of my mother with me.

Answer:
In the Name of Allaah, the Most Gracious, the Most Merciful.
As-salaamu ‘alaykum wa-rahmatullaahi wa-barakaatuh.

We commend you for your consciousness. May Allaah Ta’aala allow you to remain steadfast and may He bless you and your family.

By “prepared a pension for me”, we understand that your honorable father had nominated you as the beneficiary to his pension scheme. In terms of its permissibility as well as you being the sole beneficiary, this will depend on the details of the scheme.

If the pension was compulsory, then the payout will be permissible and will belong solely to the beneficiary; it will not form part of the estate of the deceased. If the pension was voluntary, then it will be necessary to see where the funds were invested. If the funds were invested in an impermissible avenue or portfolio, then the payout therefrom will not be permissible. However, the capital invested therein will be permissible as well as the proceeds from any permissible investments. In a voluntary pension scheme wherein the employer had also contributed, the payout would form part of the estate and distributed according to the Shari’ah laws of inheritance. The nominated beneficiary will not be the sole beneficiary in most cases.

We are unable to comment about your specific situation as you have not provided any details about the pension in question. You may use the above guidelines to assist you.

And Allaah Ta’aala knows best.
Mufti Muajul I. Chowdhury
Darul Iftaa New York
https://askthemufti.us/

05/02/1445 AH – 11/16/2023 CE | 666

وصل اللهم وسلم وبارك على سيدنا محمد وعلى ءاله وصحبه أجمعين

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