Pensions in the UK affect almost every working adult and it is the prime way for saving for your retirement. Therefore understanding what makes a pension halal is important.
In this video, Faizal Karbani (CEO) provides succinct advice on what features make a pension halal and how to access it in the UK.
[0:52] ➠ Two Types of Pension Schemes in the UK
5 things you need to watch out for Defined Contribution Schemes (DCS):
[2:23] ➠ (1) Where Is The Money Invested?
[3:04] ➠ (2) Is There Any Interest Being Accrued On Cash In The Pension?
[3:27] ➠ (3) How Will You Draw Down The Pension When You Get Access To It
[4:04] ➠ (4) How Will The Pension Be Distributed On Death
[4:25] ➠ (5) The Zakat Due On Pensions
[5:14] ➠ How You Can Achieve Sharia Compliance With Your Pension
[5:25] ➠ Workplace Schemes
[5:41] ➠ Sharia Compliant Investment Option
[6:38] ➠ Expression Of Wish Form
[7:24] ➠ Calculating And Paying Your Zakat On Your Pensions
[7:47] ➠ Transferring/Consolidating Previous Work Place Schemes
[9:31] ➠ Two Choices When Choosing Provider
[10:01] ➠ Selecting Investments That Are Sharia Compliant
[10:25] ➠ Dealing With Interest Accrued
[10:36] ➠ Expression Of Wish Form
[10:47] ➠ Calculate And Pay Your Zakat On The Pension Every Year
[10:56] ➠ Choose Flexi Draw Down And Not Annuity
If you would like advice on pensions, please feel free to book a Free Online Consultation with one of our Advisers: