:salam2:
I have searched thru this forum (and various others) to find and answer to this question : Does one include your Retirement fund in your Zakah calculations.
Here in South Africa, it is not required by law (it might be in the near future), so contributions to the fund is entirely voluntary.
On retirment age, one is paid out 30% of the retirement fund and the rest is then paid out in small increments as a 'salary'
Some site say you have to, other say no, other say no but you have to pay in all the years of zakah accrued on payout.
Now if I have R1m in my fund my 50yrs, at this stage I cannot draw any money from the fund without heavy penalties and taxes, but if I have to pay zakah on this which would amount to R25K. At this stage of my life, I will propably not even earn that much in salary, and thus will prob not have that amount in cash.
Even if I were to wait for the retirment fund to payout, then have to pay all the accrued zakah, then my entire fund might go for only payment of zakah.
Can I please have you view on this?
I have searched thru this forum (and various others) to find and answer to this question : Does one include your Retirement fund in your Zakah calculations.
Here in South Africa, it is not required by law (it might be in the near future), so contributions to the fund is entirely voluntary.
On retirment age, one is paid out 30% of the retirement fund and the rest is then paid out in small increments as a 'salary'
Some site say you have to, other say no, other say no but you have to pay in all the years of zakah accrued on payout.
Now if I have R1m in my fund my 50yrs, at this stage I cannot draw any money from the fund without heavy penalties and taxes, but if I have to pay zakah on this which would amount to R25K. At this stage of my life, I will propably not even earn that much in salary, and thus will prob not have that amount in cash.
Even if I were to wait for the retirment fund to payout, then have to pay all the accrued zakah, then my entire fund might go for only payment of zakah.
Can I please have you view on this?
