Do I Have To Pay Zakat On Money Saved For Retirement?
5% or 10% zakat is only on production / earnings, not on savings. I urge you one more time to go through the material that I have shared with you several times before to understand the concept of zakat. It will take some time, however, it will clarify all the confusions.
Faisal I just checked the references you provided. On retirement fund, it is 10%. I guess it applies if someone decides to take the lumpsum. So if someone takes lumpsum, he pays 10% first time and then 2.5 percent each year if he doesn’t reinvest the cash. If person takes monthly, then no Zakat if within Nisab but any amount above Nisab requires 2.5 percent Zakat. If someone saves for retirement, but doesn’t invest, then 2.5 percent each year on saving. Hopefully I got it right this time.