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Mercer and now:pensions are proud to announce the launch of new Shariah lifestyle investment strategies, aimed at enhancing retirement savings options for the UK’s Muslim community. With approximately four million Muslims residing in the UK1, the need for accessible and compliant pension solutions has never been more pressing. Mercer’s solution will be available for members in early 2026, whilst now:pensions’ solution will likely become available later in 2025.
For over 30 years, the UK has been at the forefront of Islamic finance2, with London recognised as a leading financial centre3. Despite this progress, a significant challenge remains: one third of Muslim employees in the UK do not have a workplace pension, with 78 per cent citing concerns regarding Shariah compliance4. This gap has resulted in an estimated £12.8 billion in missed retirement savings for the Muslim community5.
The industry’s current offerings for Muslim employees have been limited, often restricted to a single fund focused on Shariah equities. Mercer’s commitment to delivering a comprehensive solution has led to the development of a range of investment options that reflect individual risk tolerances and provide options for Muslim members to reflect their own risk tolerance when retirement planning.
The newly launched Shariah lifestyle investment strategies will mirror in terms of risk/return profile the successful approach of Mercer and now:pensions default investment strategies, ensuring consistency within each firm’s investment propositions.
“As a global organisation, Mercer is uniquely positioned to leverage the UK’s status as a global centre for Islamic finance, collaborating with some of the largest investors in the Middle East to deliver innovative solutions to our clients” explains Ben Lewis, head of investment proposition at the Mercer Master Trust. “We know this is of particular importance to younger Muslims with 83% of 18–24-year-olds familiar with Islamic finance, compared to just 26% of those over 55. By expanding our offerings, we aim to empower younger generations to secure their financial futures. Our goal is to ensure that all employees have access to the retirement solutions they need and deserve.”
To successfully roll out these new options, Mercer will work in partnership with their clients to engage Muslim members. Communication campaigns will target those members who may have previously opted out of pension schemes, due to a lack of Shariah-compliant investment options.
The Mercer Master Trust is provided by the Mercer Master Trust Trustee Board acting in conjunction with the founder of the Mercer Master Trust, Mercer Limited, which is authorised and regulated by the Financial Conduct Authority. Registered in England and Wales No.984275. Registered Office: 1 Tower Place West, Tower Place, London EC3R 5BU.
now:pensions is an award-winning UK workplace pension provider that manages the pension savings of millions of members on behalf of tens of thousands of employers from a wide range of industries. now:pensions is part of the Cardano Group. Cardano Group, a business of Marsh McLennan (NYSE:MMC), is a market leader in providing risk and investment management services designed to make pension outcomes more stable and robust.
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1Religion, England and Wales – Office for National Statistics
2 2015047_Is_Fin_A5_AW_ENG_WEB.pdf
3Business Reporter – Finance – The UK can be a world leader in Islamic finance
4Smart Pension and Wahed launch advertising campaign
5Muslims missing out on pensions worth £13bn due to sharia concerns | News | Pensions Expert