Having a traditional interest-based (riba) superannuation fund as a Muslim is a problem. You may not have realised it, but by having your money invested in traditional westernised funds, you’re involving yourself in forbidden financial practices under Islamic law.
Thankfully, it’s not too late to move your money to a Sharia-compliant super fund and get yourself in right standing with Allah.
However, switching to a halal super fund might seem like a daunting task. At Ijarah Finance, we can confirm that it’s actually an easy and straightforward process that’s well worth the effort.
Doing so will align your retirement savings with your values. Our Sharia-compliant funds avoid investments in haram industries like gambling or riba finance, letting you grow your wealth ethically.
Here’s a clear, step-by-step guide to help you make the switch smoothly so you can clear your conscience.
1. How Can I Find a Suitable Halal Super Fund?
Ijarah Finance offers tailored halal super funds in Australia. Our funds invest only in permissible sectors, like real estate or technology, and are regularly audited by certified Sharia scholars. Moreover, all of our finance products avoid riba entirely.
If you like, we can show you our funds’ performance history and fees so that you can rest assured that they align with your financial goals.
2. How Can I Review My Current Super?
Once you’re happy that you’ve found an acceptable Sharia-compliant super fund with Ijarah Finance, then it’s time to take a close look at your existing super account.
Log into your current fund’s portal or contact your existing fund manager to confirm your balance, fees, and any exit penalties. You’ll want to understand your current investments to ensure the switch goes off as smoothly as possible with minimal impact to your savings.
Comparing your fund’s performance with a halal fund’s potential returns is important, but remember that the key reason you need to make a switch is more moral than financial.
3. What Steps Are Needed to Transfer My Super?
Once you’re ready to make the switch to a halal super fund, then it’s time to initiate the rollover process.
Most funds provide a simple transfer form that you can complete online. For this, you’ll need your current super fund’s details, like your member number and the fund’s Unique Superannuation Identifier.
Submit this form to our team at Ijarah Finance and we’ll handle the rest.
4. Should I Seek Professional Advice?
Before finalising the switch, it might be a good idea to consult a financial adviser familiar with Sharia-compliant investing so that you can get an accurate assessment of the tax implications or insurance coverage changes, if any. This way you can minimise the cost of switching and avoid any surprises.
If you want to grow your super ethically, contact Ijarah Finance today to find out more about how our Sharia-compliant superannuation solutions can support your financial future without compromising your faith.