Expounding the Relevance of Retirement Planning from the Primary Sources of the Shari’ah
June 20th, 2017
By Haneffa Binti Muchlis Gazalia and Nabil Bellob
Purpose – This paper presents an introduction on retirement planning from the Islamic perspective. Most importantly, it points out the lessons of retirement planning from the Islamic primary sources, that is the Qur’an and the Hadith and also from the maqasid al-Shari’ah.
Design/methodology/approach – A secondary methodology is used for this study through library research by reviewing the concepts and processes of retirement planning from the Islamic perspective.
Findings –Although the concept of retirement planning is not found in Islamic literature, there are some verses in the Qur’an and hadith that show the importance of planning for future and taking measures against risks and uncertainties in life. The importance of planning is not solely for individuals alone but for their wives and children.
Limitation/ implication – It is noted that there are limited studies on retirement planning from Islamic perspective. The paper also utilized conceptual approach without conducting empirical and statistical investigations.
Practical implication – The paper provides an insight on the importance of retirement planning and its relevance from the Shari’ah point of view. It is essential for the policy makers and service providers to offer retirement products that comply with Shari’ah rulings.
Originality – This paper is the first attempt to discuss retirement planning through maslahah and Maqasid al-Shari’ahin order to encourage Muslim manage their wealth properly for the sake of obtaining al-falah in this world and in the hereafter.