i have a question about my personal pension and zakat, i pay in £3600 per year into my personal pension, half the pension is invested in ethical shares and the other half in commercial property, the value of my pension normaly increase by more than £3600 per year. The pension is a halal pension. Do i have to pay zakat on the total value of my pension or total accumalitive contributions for all years or just the contribution for concearning year. I will not be able to touch the money until i retire then i will get 25% of my pension straight away , then i will get a 10% of the pension early.
My wife is school teacher in england, she pay a contribution to the goverment montly in return the govermemnt would provide her with a pension when sher retires, do she have to zakat on her contributions.
1. Your question is not clear. Kindly clarify the following:
a. Is the pension compulsory or voluntary?
b. Who do you contribute your premiums to – government or private company?
c. What percentage do you contribute?
d. What do you mean by getting 25%, why not the full amount?
e. What do you mean by 10% pension early.
2. If your wife’s contribution is compulsory, she will not have to pay Zakaat on her contribution. If her contribution is voluntary, then she will have to pay Zakaat on her contributions.
And Allah Ta’ala Knows Best
Mufti Ebrahim Desai