Question Summary:
Retirement Annuity and Investment accounts

Question Detail:

I humbly require assistance with a financial matter. I would like to know if it is permissible for us to have retirement plans and Investment accounts. There are many companies and banks that give a shariah compliant option however I'm not sure if these options are truly halaal. Kindly advise if it is permissible to have retirement and Investment accounts and if so which company or banks are most suitable to have these financial plans with. In addition are tax free investments shariah compliant? I currently bank with FNB. The company that I work for automatically deducts provident fund and UIF as it is company policy and they have these funds with old mutual. Would this money be halaal in future. 

Answer :

In the Name of Allaah, the Most Gracious, the Most Merciful.

As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.

1)    We need to observe the details of the retirement plans and the investment accounts offered by those banks in order for us to comment on its Shari’ah compliancy.

2)    If you are obliged to pay towards the provident fund, then it will be permissible to receive payment from such a fund[1].

And Allaah Ta’aala Knows Best

Muhammed Al-Ameen Bin Moulana Ismail Akoo

Student, Darul Iftaa

Newcastle; KZN, South Africa

Checked and Approved by,
Mufti Ebrahim Desai.

[1]  فتاوى دار العلوم زكرياج 3- ص 14 (زمزم)

أحسن الفتاوىج 7- ص 35 (أدب منزل)