Wednesday, April 17, 2024
No menu items!

Retirement pension

Fatwaa ID: 2134

Question:
Assalāmualaikum Mufti sahab,

When you work for a US company, some companies add certain portion every year to your pension, and say that you can get this balance in the form of monthly payments after the age of 65, is that halal to take not knowing how that balance is growing by the company? Because if you leave the company, that balance continues to grow by them investing or something else which is not known to me?

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

If the amount is being voluntarily invested or added on your behalf, i.e., you have a choice and say, then this must be invested in Shari’ah compliant avenues. If it is not, then the proceeds from the haraam avenues will be haraam for you. You may however keep the capital amount.

If the amount is involuntary, whether it is deducted from your salary or additionally given by your employer, then this will be permissible for you to accept at the end. You are not responsible for its avenues of investment or growth. That is on them. You may accept it at the end as a gift from your employer.

It should be noted that the first type will be subject zakaah. We advise you to consult with your local scholars for details on the zakaah of it.

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

08/09/1445 AH – 02/19/2024 CE | AMG1-3753

وصل اللهم وسلم وبارك على سيدنا محمد وعلى ءاله وصحبه أجمعين


See the following,
https://askthemufti.us/retirement-annuities-in-zakaah-calculation/

__________________
Disclaimer

Darul Iftaa New York answers questions on issues pertaining to Shari’ah. These questions and answers are placed for public view on askthemufti.us for educational purposes. The rulings given here are based on the questions posed and should be read in conjunction with the questions. Many answers are unique to a particular scenario and cannot be taken as a basis to establish a ruling in another situation. 

Darul Iftaa New York bears no responsibility with regard to its answers being used out of their intended contexts, nor with regard to any loss or damage that may be caused by acting on its answers or not doing so.

References and links to other websites should not be taken as an endorsement of all contents of those websites. 

Answers may not be used as evidence in any court of law without prior written consent of Darul Iftaa New York.