Every middle aged individual has thought about retirement at least a few times. It is a time of one’s life when all worries, especially money-related ones, should be out of mind and out of sight. How can you as a Muslim ensure that your halal superannuation will be a peaceful one? Here are a few things that are good to know and will help you plan ahead as the time for retirement draws closer;
How should pension savings be processed?
Pension savings can be a sum of money from your salary that goes into a separate account on a monthly basis, collecting interest on the accumulated amounts over time. On the other hand, it can be a lump sum that is the product of a percentage of your salary that has been deducted over the years and handed over to you by your employer at the end of your employment. Whichever the method of obtaining these savings is, you must have a proper plan in place for how this money is going to support you and your family in the years to come when you will no longer be able to work. This plan should be within the framework of Islamic finance as well as be one that will reap the best benefits for you at the same time. For example, your retirement plan will have to take into account any and all future tax you might have to pay and how to cover any outstanding debts you may have as well.
How can the safety of money be assured?
The safety of this money is largely in the hands of the financial institution that you have selected to trust with your savings. By making prudent Islamic financial investments and managing your wealth the correct way, this institution will be able to maximise returns to you from your superannuation by making more money out of it. Also, you must consider the possibility that the safety of the money will be increased if you place it in a saving account with a trustworthy financial institution rather than take the risk of trying to ensure its welfare on your own.
How can the portfolio be personalised?
Personalising your investment portfolio to suit your specific requirements is something that needs to be properly planned and carefully put in place. Especially when it comes to your Islamic superannuation, you can choose to either let your financial service provider manage your portfolio for you, or work alongside your advisor to select your investments. Either way, an expert in the subject of halal superannuation will be able to recommend and invest in those types of investment that fall in line with the guidelines provided by Sharia law as well as yield the best returns for you as an individual planning your retirement. A wide variety of other factors such as your current and non-current assets, tax situation, willingness to take risks, etc. will also need to be considered when planning your personal portfolio.