The Shariah Pension Fund at IMI

Recent research has found that a third of working British Muslims do not have a workplace pension. 206,720 working Muslims are missing out, and in 80% of cases this is attributed to a lack of communication over Shariah-compliant pension options.

This has led to a £11.5bn pensions gap.

At IMI, we want to build a better world, and to do that this statistic needs to change. Because we also want you to be able to build a retirement fund to last.

If someone who currently didn’t contribute to a pension, or didn’t have one altogether, began contributing as little as £50 to their retirement each month, they could expect to have a pension pot worth around £55,755 by the time they reach retirement age.

What options do I have as a working British Muslim at IMI?

Pensions are invested in the stock market, meaning that you buy and sell shares of trading companies to slowly grow the value of your retirement savings over time.

At IMI, you can choose to have a Shariah-compliant fund called the SW Mercer Shariah Fund. Managed by your IMI workplace pension provider, Mercer, this fund aims to offer you the opportunity to grow your money in line with the performance of the Dow Jones Islamic Titans 100 Index. The Fund invests in companies across the globe and is compliant with Islamic Shariah principles.

To choose to invest your pension in the SW Mercer Shariah Fund, you simply need to log in to Optimize.

For more information about changing funds, check out your investment options with IMI.

And for a complete list of the Funds available to you, including a summary of the Shariah fund, see Mercer’s Investment Guide. You’ll find the SW Mercer Shariah Fund at the bottom of page 9.

For an in-depth guide to the Shariah fund with Mercer, search for the keyword 'Shariah' within the plan infosite. You'll find a detailed factsheet with the fund's performance and asset split, including sector distribution and the top holdings.

However, it’s worth looking through both documents as a whole to become better immersed in the world of investment choices and the associated risks, types of investment, and guidance on making investment decisions - especially before making important financial decisions.

It’s crucial that you feel confident in your retirement journey, so that you can begin to build a better future.

The crucial contribution

Remember, IMI match your pension contributions up to 7%. That means that, if you contribute 7% of your salary to the SW Mercer Shariah Fund, IMI will match it. Effectively, you’ll have contributed 14% of your salary, but only paid for half of it.

And that’s before the Government’s tax relief comes in too. For more information on how a pension works, check out your pension explained.