Seeking Expert Advice on Pension Fund and Contribution Options

[pourpreh]

Aslaamu Alaykum

I trust this message finds you in good health. Approximately 1.5 years ago, I enrolled in my company's pension scheme with Scottish Widows, specifically investing in the "Specialist Global Equity Pension (Series 2)" fund. I have a couple of vital inquiries and would greatly appreciate your expert insights:

1. Sharia Compliance: When I initiated my enrolment, I diligently ensured my pension fund's adherence to Sharia principles. However, I would like to seek additional validation from this esteemed community. Could any of you confirm the authenticity of this fund concerning Sharia compliance, or perhaps share any personal experiences or knowledge on this matter?
2. Contribution Increase: My employer and I currently contribute 4.5% of my salary to the pension fund. Now, I am presented with an option to increase my contribution. With this recent opportunity, I can elevate my contribution to 6.5%, with a corresponding increase in my employer's matching contribution. I am contemplating this choice and would greatly appreciate your expert advice. In your esteemed opinion, is it advisable to increase my contribution to 6.5%, or would it be prudent to maintain the existing 4.5% level? I seek to comprehensively understand whether the benefits of a higher contribution outweigh any associated costs.

I eagerly await your esteemed input and guidance on these pressing matters. My sincere thanks in advance for sharing your invaluable knowledge and experiences.

Jazak Allah Khair

 

[alinaseh]

@pourpreh Legal & General have a shariah approved pension fund. Should be easy to switch to them. The general rule of thumb is to contribute as little money as possible for your employer’s maximum.

 

[amarriedmess]

@pourpreh Salam aalykom, you can DM me if you want. I am a pension consultant