THE INFAQ THEORY OF ISLAMIC PENSION

Keywords: Islamic Pension, Islamic Welfare, Muslim Elderly, Muslim Employees’ Pensions, Infaq and Islamic Moral Economy

Abstract

This paper applies an Islamic economic perspective to a major conundrum besetting the Islamic world, namely, how to provide financial support to expanding ageing Muslim populations. The paper employs a qualitative method involving descriptive and analytical methods whereby primary and secondary data are analyzed to inductively form a formula for an Islamic pension scheme. The results of this study suggest that despite the benefits and worldwide application of pension schemes, proponents of Islamic finance remain ill-prepared and slow to devise prototypes of workable Islamic pension models designed to address the needs of ageing Muslim populations. The vast majority of existing pension schemes fail to comply with the principles and values of Islamic law and ethics. As a generality, Muslim populations would prefer to remain without pension provision rather than endorse a religiously unlawful policy. The paper proposes that infaq as a key institution of Islamic moral economy, provides an ideal foundation for the development of an Islamic pension model that satisfies both legal and ethical Islamic stipulations. Keywords: Islamic pension, Islamic welfare, Muslim elderly, Muslim employees’ pensions, infaq and Islamic moral economy.

JEL Classification Codes: G32, F65, L66, L25, M41.

Author Biographies

Ataollah Rahmani, University of Dundee, UK

Lecturer in Commercial Law, Al-Maktoum College of Higher Education & School of Business, University of Dundee, UK

Alija Avdukic, University of Dundee, UK

Senior Lecturer in Islamic Economics & Finance, Al-Maktoum College of Higher Education & School of Business, University of Dundee, UK

Faizal A. Manjoo, Markfield Institute of Higher Education, UK

Senior Lecturer in Islamic Studies and Finance at Markfield Institute of Higher Education, UK

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Published
2022-07-05
How to Cite
Rahmani, A., Avdukic, A., & Manjoo, F. A. (2022). THE INFAQ THEORY OF ISLAMIC PENSION. International Journal of Islamic Banking and Finance Research, 9(1), 32-44. https://doi.org/10.46281/ijibfr.v9i1.1769
Section
Original Articles/Review Articles/Case Reports/Short Communications