Private pension

I have several private pensions with all the major pension providers (legal & general, Scottish widows, Aviva). How do I know if my pension is halal?

Wa alaykum salaam,

I pray you are well.

It all depends on your portfolio and where the funds are invested. Do you know in which asset classes your pension is invested in?

Scottish widows ethical pension series 2. Asset allocation UK equities 87.8 money market 5.2 Europe ex UK equities 3.5 property share 3.5

As a point to note, all of these pension providers have shariah compliant funds that you can switch to.

Salams Mufti

I have several pensions so any advice would be much appreciated, in particular, how I can go about making these halal if they are not already.

  1. Current pension Legal & General which employer also pays into
    100% Diversified Fund 3B - this has multiple allocations

  2. Scottish Widows - multiple asset classes:
    19% property
    15% UK Equity tracker
    26% Fixed Index tracker
    24% SW SSgA Europe
    6% SW SSgA Japan Equity Index
    7% SW SSgA North America Equity Index
    2% Emerging markets

  3. Aviva pension A
    80% HSBC Islamic global Equity Index
    7% Index linked IE
    7% Phoenix Wealth Elite Stockmarket managed I.E.
    6% BNY Mellon International Bond IE

  4. Aviva Pension B
    50% Index tracked
    30% UK Equity
    20% property

  5. I have also a local government pension scheme.

The problem with all these pensions is that you do not know which companies are being invested in. Additional, there are issues with index trackers as the underlying investments are very likely non-Shariah compliant.

The only way to ensure your pension investments are Shariah compliant is to ensure that you have a Shariah compliant pension which is labelled as a Shariah fund.

Salaam Mufti Faraz,

Are you aware of any shariah compliant private pensions (if these even exist) that one can invest in?

Assalaamu alaykum,

Check out pension providers Royal London for the HSBC Amanah global equities or NEST.

You need to ask the pension providers for a Shariah compliant pension.

Shukran Mufti Faraz, will try them