Wednesday, April 17, 2024
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Retirement pension

Fatwaa ID: 2134

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?

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

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

وصل اللهم وسلم وبارك على سيدنا محمد وعلى ءاله وصحبه أجمعين

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