IslamicFinance.de

Pension schemes are increasingly attempting to understand their members' preferences. Exclusion policies over so-called sin stocks, such as alcohol and tobacco, is on the rise across the UK. The need for sharia-accommodating pensions is likely to grow. The UK’s Muslim population reached 2.8m in 2011, according to the last census. The biggest challenge associated with sharia compliance relates to its policies on investments, but sukuk can take the place of conventional debt instruments. Christine Hallett, CEO of Carey Pensions UK, which administers the Islamic Pension Trust, says sukuk is currently too expensive for the workplace DC default charge cap of 0.75%. The industry is faced with a circular problem. Lack of demand limits the range of mature markets sharia funds can invest in. Maria Nazarova-Doyle, head of JLT Employee Benefits, sees a current absence of demand for sharia pensions, but adds that sharia considerations are becoming more prominent.