Joining pension plan that possibly invests funds in unlawful activities
Fatwa No: 337699

  • Fatwa Date:28-12-2016 - Rabee' Al-Awwal 29, 1438
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Assalaamu alaykum. I have a choice of opting into a pension plan with a pension company. This provider takes the monthly payments made by my employer and invests it in funds. However, I have no idea of what these funds involve as it is not made clear. They potentially could include haram and unlawful activities involving interest and so on. (I did spot one fund which seems to be based on bonds, which is tied to interest, is it not?) My question is, is it permissible for me to opt in to this pension plan, bearing in mind that there may be a possibility of money being invested in funds that involve haram activities? Or shall I stay away from this pension plan in order to remain on the safe side?


All perfect praise be to Allah, The Lord of the worlds. I testify that there is none worthy of worship except Allah and that Muhammad  sallallaahu  `alayhi  wa  sallam ( may  Allaah exalt his mention ) is His slave and Messenger.

First of all, may Allah reward you for seeking what is lawful and fearing what is forbidden. Indeed, a Muslim who is keen on his religion must be as such.

A saying of the Prophet  sallallaahu  `alayhi  wa  sallam ( may  Allaah exalt his mention ) reads, “Anybody that grew up from what is forbidden, then the Fire is worthier of it.” [Ahmad and at-Tirmithi]

The Prophet  sallallaahu  `alayhi  wa  sallam ( may  Allaah exalt his mention ) also said, “Leave that which you doubt about for that which you do not doubt about.

So you should be extremely keen on limiting yourself to lawful earnings and beware of what is forbidden, even if you make much money out of it.

Allah says (what means): {Say, "Not equal are the evil and the good, although the abundance of evil might impress you." So fear Allah, O you of understanding, that you may be successful.} [Quran 5:100]

As long as there is a possibility that the employees' funds are being invested in what is forbidden, then do not join this fund, unless you make sure that it is free of what is forbidden. You must know that if you leave something for the sake of Allah, then Allah will recompense you with something better.

Allah knows best.

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