Zakaat on a retirement annuity fund

Question

I contribute towards a Retirement Annuity Fund. It does not have a cash or surrender value until retirement after I reach 55 years or later. At that stage only a portion can be received as a cash lump sum, the balance will provide a monthly income. How do I approach paying zakaat on this investment?

zd · Answer

When you get that lumpsum. Pay Zakaat for that year and the previous ones from the time when it was above the Nisaab. or estimate its value now and pay Zakaat for this year and the previous ones and the coming ones. Then the monthly income if it is enough and not above Nisaab then no Zakaat and pay on the remaining.