Is Zakat Required on a Personal Pension Plan?

Yes, but it depends on the type of pension plan.

Here’s a breakdown to help you understand:

• Defined Contribution Pension Plans
  If your pension plan is a defined contribution scheme, Zakat is due on the portion of assets that are Zakatable. You must calculate Zakat and pay it annually on the amount invested in assets subject to Zakat (such as cash, stocks, or gold).
• When is Zakat Payable?
• If you can withdraw from the pension fund, Zakat is required on the eligible assets within it.
• If your pension is locked until retirement, Zakat is generally not due until you gain access to the funds.
• Zakatable Assets in the Pension Fund
  The portion of your pension that consists of cash, gold, silver, stocks, or tradeable investments is subject to Zakat. However, non-Zakatable assets like real estate (not for sale) or fixed assets used for business purposes are exempt.

And Allah knows best!