Are you stressed about your retirement and want to start planning, but you’re afraid of contravening Sharia law?
Thankfully, it’s possible to contribute to your superannuation without fearing that you will be in conflict with the principles and morals of your faith. Halal superannuation in Australia allows you to invest in your future in a way that aligns with Islamic principles.
Here are several things you didn’t know about Halal superannuation:
Halal Super Funds Avoid Interest-Based Investments
One of the most critical aspects of a Halal super fund is that it doesn’t engage in riba at all. Conventional super funds often invest in banks and financial institutions that earn interest, which is strictly prohibited in Islam.
Steering clear of these is made possible by applying Sharia screens to Halal superannuation funds that ensure all investments are not only compliant with this aspect but also avoid investments in unethical activities such as gambling and alcohol, besides others.
You’ll Still Get Competitive Returns
Just because a super fund is Sharia-compliant doesn’t mean that there is any sacrifice in performance. Although Halal super funds avoid interest-based systems, they are still allowed to make a profit.
Many Halal super options invest in profit-making industries like healthcare, technology and other Halal-certified companies to secure solid, long-term growth while still remaining ethical. This way, your money can grow without compromising your moral standards.
Halal Super Funds Are Reviewed by Sharia Boards
If you’re unsure about whether a Halal super fund is truly Sharia-compliant or not, you can rest assured that legitimate Halal superannuation providers like Ijarah Finance have a dedicated Sharia advisory board to ensure that all investments comply with Islamic principles. This board regularly audits the fund’s holdings to maintain compliance and ensure that, at no stage, does the company or its clients unwittingly engage in haram practices.
Switch to a Halal Fund Anytime
If you’ve been paying your retirement money into a regular super fund because you didn’t know Halal options existed and you would like to switch, you can. You’re not locked in.
You are able to transfer your funds out of a mainstream super fund into a Halal super fund at any time without any penalties. Rolling over your balance is a fairly straightforward process that will give you peace of mind and help secure the ethical soundness of your retirement planning.
Your retirement planning need not be in contravention of the principles of your Islamic faith. Contact us now to get halal superannuation today through Ijarah Finance in Australia.