The Muslim population currently constitutes almost 24% of the world’s population. Many of the Muslim majority countries are emerging markets with a young and affluent population. However, with increasing access to a better quality of life, advancements in medical and healthcare facilities together with greater awareness of health-related issues, most countries globally and within the Muslim world are witnessing increasing life expectancies amongst their populations. As the population demographics mature, the issue of longevity will start to impact the Muslim world.
One of the long-term impacts of greater life expectancies is the need for retirement products. With Muslim consumers in the key markets of the GCC, South East Asia and beyond becoming more financially savvy and with heightened awareness of the need for financial security upon retirement, there is a huge potential market for pension plans that are Sharia-compliant.
However, Takaful products focusing on retirement and pensions are still largely non-existent. This report explores the issues around longevity risk and other delicate financial concepts and how the Takaful industry can play its role in introducing Sharia-compliant pension products, examines key industry trends, future projections and the significant growth opportunities in the pension Takaful industry.