Lucky, 5th Pillar team up on free pension takaful

November 18, 2025 (MLN): Lucky Investments Limited and 5th Pillar Family Takaful have signed an agreement to provide complimentary Takaful coverage to all contributors in the Lucky Islamic Pension Fund (LIPF), adding a layer of Shariah-compliant financial protection to Pakistan’s private retirement savings market.

The arrangement makes LIPF one of the few pension products in the country to bundle family Takaful protection at no additional cost a feature that could strengthen its appeal at a time when voluntary pension contributions remain low.

According to industry officials, participation in private retirement schemes in Pakistan remains modest despite tax incentives, with most workers outside the formal sector lacking structured savings options.

Executives from both organizations said the partnership is intended to improve financial security for savers and their dependents.

Lucky Investments CEO Mohammad Shoaib, CFA, said the added protection aims to safeguard participants’ long-term savings as well as provide support for families in the event of an unexpected loss.

5th Pillar Family Takaful CEO Nasar us Samad Qureshi said the collaboration reflects rising demand for Shariah compliant protection products.

The LIPF, introduced recently as a faith-based retirement fund, includes four investment sub-funds Equity, Debt, Money Market and Gold managed under Shariah oversight. Pension investors can choose allocations based on risk tolerance, with contributions eligible for tax benefits under Pakistan’s voluntary pension system rules.

Analysts say the addition of free Takaful coverage could increase competition among Islamic pension providers, particularly as asset managers seek to expand their presence in the growing market for Shariah compliant savings and protection products.

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