Question
1. Is RRSP (Registered Retirement Savings Plan) Halal? Retirement Savings plan in which individuals can contribute and withdraw money at the age of Retirement. 2. Is Employer - Matched RRSP halal? This is one of the benefits offered by the employer. In this, the employer matches the money put by the employee in the RRSP account every paycheck. 3. If halal, how to calculate zakaat for this? - 4. Is RESP (Registered Education Savings Plan) (it is voluntary) halal? This is a savings plan in which individuals contribute towards their children's college/ university education. Government also gives benefits by giving bonus to the account. 5. If halal, how to calculate Zakaat for this (for child)? (my comment, the parent has possession of this amount until the child comes to an age that University can be started).
Answer
All of these pension and retirement funds are haraam. Monies are invested in riba and even the contracts are riba agreements. Hence it is not permissible to voluntarily become involved in these schemes. If it is a compulsory scheme, then the proceeds will be permissible and will belong to the beneficiary when the funds are actually received. In a voluntary scheme, only the actual amount which was paid into the fund will belong to one. The excess will be haraam riba which is Waajibut Tasadduq. That is, the money must be given to the poor without niyyat of thawaab. This explanation applies to all of these funds.
- Source
- themajlis.co.za
- Published in
- The Majlis Vol 27 No 12
- PDF page
- 11
Verbatim verified against the source PDF
Appears under THE FATHER’S RIGHTS?. This heading is the nearest headline at or before the page and is approximate. Do not cite it alone.