Standard Life has introduced a fully Sharia-compliant pension strategy for members of its workplace pension schemes in partnership with and. The initiative has been designed to help Muslim savers invest for retirement in line with Islamic finance principles while also targeting long-term growth.
The new solution, named the Standard Life Sharia Universal Strategic Lifestyle Profile, includes two investment funds. The Standard Life Sharia Growth Pension Fund invests in the SL HSBC Islamic Global Equity Index Pension Fund, while the Standard Life Sharia At Retirement Pension Fund invests in the SL Franklin Global Sukuk Pension Fund. The sukuk fund focuses on investments across the Middle East, North Africa, and South Asia, covering both corporate and government-backed sukuk.
According to Standard Life, both investment structures follow internationally recognised AAOIFI standards and are monitored through dedicated Sharia governance frameworks established by the investment managers. The company has also expanded its Sharia-compliant offerings by introducing additional self-select pension investment options for customers seeking greater flexibility.
To oversee the development and ongoing compliance of the proposition, Standard Life has appointed as its external Sharia adviser. A dedicated Sharia Supervisory Group has also been established, chaired by with support from.
Emma Furlonger, Managing Director of Workplace and Retail Intermediated (Interim) at Standard Life, described the launch as an important step in expanding investment solutions that meet the diverse needs and values of pension members. She said the strategy aims to balance Sharia compliance with suitable long-term retirement outcomes for savers.
Professor Mahomed said the introduction of Sharia-compliant pension investment options reflects growing demand for Islamic finance solutions in the UK. He added that increasing access to such products allows Muslim investors to save for retirement without compromising their beliefs, while also appealing to a broader group of ethically focused investors.
The launch highlights the continued growth of Islamic finance within the UK pension market, as providers increasingly look to offer inclusive and values-based investment solutions for workplace savers.