Answered by Shaykh Abu Usamah
Does one have to give zakat on one’s retirement fund?
If the monthly contribution from his salary towards this fund is deducted at source by the employer without the employee’s being given this amount then there is no Zakah on that wealth until the same is received by the employee. This is because in such case the employee has not yet become the owner of that wealth.
However if the employee voluntarily contributes to a retirement fund from his own wealth then he will be liable for Zakah yearly on the contributions he has made plus any profit he has accrued thereby. In this case it is simpler to pay the Zakah each year although he can pay the Zakah for all the preceding years when he in reality receives the money.
And Allah Ta`ala Knows Best.