Sharia pension plan

Investments in line with faith without sacrificing pension pot growth.

As with all investments, your capital is at risk.

A pension aligned with faith

Muslims represent a quarter of the world’s population, yet less than 1% of global financial assets are Sharia-compliant.

By selecting the Sharia plan, your pension contributions are invested in a wide range of funds and companies that operate in a Sharia-compliant manner.

The Sharia plan has one simple all-in fee. You'll only pay an annual fee of 0.88% for savings under £100,000, or 0.53% for any amount over £100,000.

A photo of a smiling man sat down at a desk and an excerpt of the Penfold pension app showing the Sharia investment fund screen

How is the fund Sharia-compliant?


Each fund within the Sharia plan has its own elected board who monitor the fund, its investments and the managing directors to ensure that they're being Sharia-compliant the whole time. All major decisions have to be approved by the board. The board creates an annual Sharia certificate, to evaluate how the fund has adhered with Sharia principles, to prove that it is fit as a Sharia-compliant fund.


Islamic philosophy prioritises ethical investment, which means that Sharia-compliant funds don’t generate an income from unethical or non-halal means. The Sharia board makes sure it restricts or excludes investment in industries such as alcohol, tobacco, pork, finance sector, weapons and adult entertainment. The Sharia plan allows for up to 5% of income to come from non-compliant means, which is ‘purified’ and donated to community charities that support positive social change which is chosen by the Sharia board.

A photo of a smiling woman sat down on a sofa and holding a notebook

How is the fund Sharia-compliant?


Islamic finance says that financially benefiting from lending, receiving or exchanging money is unfair and can create inequality. This is why no interest is earned or paid within a Sharia-compliant fund. Instead, wealth is made by profits from trade and investment, rather than interest. This means that the assets in the Sharia fund are placed in a checking account which restricts earning interest on the money in the account.


Islamic finance rejects uncertainty because a risky investment could potentially involve selling goods and assets of uncertain quality, which goes against the Islamic principle of certainty and openness in business dealings. This means a Sharia fund doesn’t use complex investment methods and instruments that could involve greater uncertainty, risk and speculation such as derivatives. Instead, the fund instead invests in listed company stocks, to make sure all transactions are clear and identifiable.

A photo of a smiling man sat standing over a desk

In collaboration with HSBC

We're proud to collaborate with one of the world's largest asset managers, HSBC, for customers looking to invest their savings in line with Islamic principles on finance.

The plan invests in the HSBC Islamic Global Equity Index Fund and is a great option for those that are looking for a socially responsible way to invest their money under Sharia law.

As the plan sits on level 5 out of 7 on the risk and potential reward scale it means that the fund is also great option for those who are a long way from retirement, looking for strong, long-term growth and don’t mind ups and downs in value each year.

A photo of a smiling woman holding a mug and the HSBC logo

Sharia plan FAQs

Join Penfold and bring financial wellbeing to your team

Give your team a top pension and boost their financial wellbeing

Boost your benefits package to keep and tempt the best talent

Get industry-beating account management at no extra charge

Book a Demo