Q: Is Zakat due on an equity pension?
A: Equities represent shares in different companies. If the pension portfolio only consists of equities, NZF advises to take 25% of the current market value of the portfolio as a proxy and then pay 2.5% of this figure as Zakat. According to our research, 25% is a safe proxy for Zakatable assets in equities. This rule of thumb was determined after extensive research. Our research can be seen online on our website.
And Allah knows best!
Mufti Faraz Adam