Are pensions considered to be a “zakatable” asset?

Q: Are pensions considered to be a “zakātable” asset?

الجواب حامدًا و مصليًا و منه الصدق و الصواب

A: Final Salary pension schemes are not zakātable assets. Average Salary schemes also follow the same rule. Money Purchase schemes and Private Pension schemes wherein the pension fund is invested on behalf of and sometimes at the discretion of the pension-holder are zakātable assets.[1]

[1]For a detailed breakdown, please see the Zakāh on Pensions research paper on the Al Qalam website.

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