Halal Retirement Investing
Build a Shariah-compliant retirement portfolio by switching your Retirement Savings Account to Fund VI, the PenCom non-interest fund. Tax-relieved contributions supercharge your halal investing.
How It Works
Understand RSA Fund VI
Fund VI is the non-interest pension fund every PenCom-licensed pension fund administrator must offer. It invests only in Shariah-compliant assets like sukuk and screened equities under a FRACE-certified framework.
Ask your PFA to switch you to Fund VI
If you already have a Retirement Savings Account, submit a Fund VI switch request to your pension fund administrator. The switch is free. If you have no RSA, open one with a PFA and select Fund VI.
Compare PFA performance
Fund VI returns vary widely between administrators, so compare published returns before choosing or transferring. You can transfer your RSA to another PFA once per year.
Contribute regularly and add voluntary contributions
Pension contributions enjoy tax relief under the Pension Reform Act. Additional voluntary contributions into the same RSA accelerate both the tax benefit and compounding.
Why Choose This Strategy?
Things to consider ▾
• Fund VI returns vary widely between pension fund administrators
• Pension savings are locked until retirement except in limited cases
Retirement investing gets a double advantage for Muslim investors in Nigeria: you're building wealth the halal way AND benefiting from tax-relieved contributions that accelerate your growth.
The math is compelling. Pension contributions are deducted before tax under the Pension Reform Act, and your investments then compound inside the fund; that combination over 20–30 years can make a substantial difference in retirement.
RSA Fund VI is professionally managed by PenCom-licensed pension fund administrators under a framework certified by the Financial Regulation Advisory Council of Experts (FRACE). The fund holds sukuk, Shariah-screened equities and other non-interest assets; the administrator handles screening and compliance.
If your employer's contributions currently sit in a default RSA fund, you don't need their permission to move: the Fund VI switch is your right as the RSA holder, and it applies to the whole balance.
Example Portfolio Allocation
Example Halal Portfolio
Balanced Long-Term
This is an illustrative example only and does not constitute financial or investment advice. Actual allocations should be determined with a qualified financial advisor based on your individual circumstances. Past performance does not guarantee future results.
Frequently Asked Questions
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Sources and review process
This page is reviewed against HalalWallet editorial standards and source documentation.
Reviewed by: HalalWallet Editorial Team
Last reviewed: 2026-03-09