By Mohd Sadad Mahmud, Nik Hazimi Mohammed Foziah, Ibraheem Alani AbdulKareem Abd Jamal & Muhammad Nasir
Abstract
The
ageing population has already blown the whole country in the world, including
Malaysia. Nevertheless, Malaysian people still lack awareness towards
retirement savings preparedness and rely only on the mandatory retirement
scheme likes the Employees Provident Fund (EPF). Unfortunately, it has reported
that the provided scheme does not provide adequate savings fund to sustain the
retiree’s life during their golden age. In this regard, the study takes a
perspective of Islamic wealth management in ensuring the sustainability and
well-being of financial retirement planning among Muslims. Therefore, the study
aims to investigate and explore the concept of Islamic annuity to be executed
by the authorities such as EPF institution and other financial institutions.
The study concluded by proposes the use of a wakalah (agency) contract
structure along with a Takaful (insurance) contract for a Shariah compliant
retirement annuity plan.
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