Is your superannuation Halal?

Is Your Superannuation Halal?

There’s a good chance that your current superannuation could be Haram.

When it comes to retirement savings, many Australian Muslims are unaware that their superannuation could be invested in industries or financial products that conflict with Islamic principles. While super itself is a crucial part of your financial future, it’s important to make sure that the investments held within your super are Shariah-compliant.

The Issue with Defensive Assets

Check to see if you have exposure to ‘defensive’ assets such as regular cash and fixed interest. These are often tied to Riba (interest), which is Haram under Islamic law. In Islam, earning interest (Riba) is prohibited as it is considered exploitative, so having your superannuation tied to such investments may conflict with your faith.

Generally speaking, most super funds have approximately a quarter of members' superannuation sitting in defensive assets on average. This means that a significant portion of your retirement savings could be tied to interest-based financial products, which are not permissible under Shariah law.

Harmful Industries

On top of that, your super could also be invested in harmful industries. These include sectors that are considered impermissible in Islam, such as:

• Alcohol
• Tobacco
• Gambling
• Conventional banking (interest-based)
• Adult entertainment
• Weapons and arms manufacturing
• And more…

Many of these industries profit from activities that can harm individuals and society. For example, the alcohol industry profits from people who may be addicted to drinking, while gambling takes advantage of vulnerable individuals who gamble away their savings or pensions. The tobacco industry contributes to more than 15,000 deaths annually in Australia, making profits off an industry that leads to serious health issues.

If your super is invested in these industries, which a lot of conventional super funds are, it means you’re potentially making money from these harmful activities.

For Muslims who strive to ensure their financial activities align with their faith, this presents a serious concern. It’s essential to know where your super is being invested to ensure that you’re not profiting from industries that go against your values.

Halal Investing: A Positive Alternative

Halal investing, on the other hand, can be a great positive alternative. It allows you to grow your wealth while adhering to Islamic principles. Halal investments avoid industries that are considered Haram, and instead focus on ethical sectors that align with Shariah law.

And that’s what we specialise in here at Purewealth Services. Our goal is to help you purify your superannuation by moving it away from Haram investments and instead, placing it in Halal-certified options.

Our Halal Solutions for Your Superannuation

We’ve put together powerful solutions for your super and investments, which are Halal-certified and work hard for you. We ensure that your retirement savings are invested in a way that adheres to Islamic principles, striving to provide both financial growth and spiritual peace of mind.

Our approach involves reviewing your existing superannuation and identifying any Haram investments. From there, we guide you through the process of switching to a Shariah-compliant super fund, ensuring that your wealth grows in a way that aligns with your faith and helps you achieve success in this life and the Hereafter, Insha'Allah.

Take the Next Step Towards Purifying Your Superannuation

If you’re unsure whether your current superannuation is Halal, we encourage you to take the next step. Book a Free No-Obligation 20-Minute Introductory Call with us to discuss how we can help you purify your superannuation.

Our team of experts will help you assess your current super fund, identify any Haram investments, and provide you with guidance on switching to a powerful Halal option. The sooner you take action, the sooner you can ensure your retirement savings are working harder for you in a way that aligns with your Islamic values.

General Advice Disclaimer

This is general advice only and does not take into account your particular objectives, financial situation, or needs. Before acting on any advice, you should consider its appropriateness in regard to your specific objectives, financial situation, and needs.