Key Takeaways
- • Mercer and now:pensions are launching a Shariah-compliant pension solution aimed at UK Muslim savers, adding new investment options to workplace pensions.
- • Mercer's solution is expected to be available to members in early 2026, while now:pensions' offering is likely to become available later in 2025, according to Corporate Adviser.
- • The shariah plan is designed to invest pension savings in line with the requirements of Shariah law and Islamic principles.
- • The two providers are also investing in a bespoke Long-Term Asset Fund (LTAF) for private markets, with an initial commitment of £350m.
Summary
Mercer and now:pensions have launched a pension solution for UK Muslims, introducing a Shariah-compliant option that adds new investment choices for members, according to Corporate Adviser. The publisher's context describes the product as a pioneering offering designed to invest pension savings in line with the requirements of Shariah law and the principles of Islam.
Timelines differ between the two providers. Mercer's solution will be available to members in early 2026, while now:pensions' solution is likely to become available later in 2025. Coverage of the broader market notes that now:pensions, a master trust, had been set to overhaul its Sharia options in 2025, after offering only one non-halal investment option. Its planned Shariah-compliant products include Islamic bonds intended to reduce risk.
The partners are also investing in a bespoke Long-Term Asset Fund (LTAF) for private markets, with an initial commitment of £350m. Details of the fund's structure and investment mandate were not available in the source material reviewed.
The development reflects growing demand for Shariah-compliant pension options among UK Muslim savers, as workplace pension providers respond to calls for more faith-sensitive investment choices.
Timelines differ between the two providers. Mercer's solution will be available to members in early 2026, while now:pensions' solution is likely to become available later in 2025. Coverage of the broader market notes that now:pensions, a master trust, had been set to overhaul its Sharia options in 2025, after offering only one non-halal investment option. Its planned Shariah-compliant products include Islamic bonds intended to reduce risk.
The partners are also investing in a bespoke Long-Term Asset Fund (LTAF) for private markets, with an initial commitment of £350m. Details of the fund's structure and investment mandate were not available in the source material reviewed.
The development reflects growing demand for Shariah-compliant pension options among UK Muslim savers, as workplace pension providers respond to calls for more faith-sensitive investment choices.
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