According to the National Zakat Foundation, defined-benefit (final salary) pensions are not zakatable. For defined-contribution pensions, zakat is due on the zakatable part of the fund. Zaytuna College counts retirement funds after estimated tax and any early-withdrawal penalty.
Defined benefit: not zakatable
In a final salary or career average scheme you own a right to a pension, not the assets behind it, and the employer carries the investment risk. The National Zakat Foundation treats the contributions as deferred salary you have not yet received, so no zakat is due on them.
Defined contribution: the zakatable part
Look at the fund's asset allocation on its factsheet, work out the percentage held in zakatable assets, apply it to your pot and pay 2.5% of the result (National Zakat Foundation).
The factsheet usually comes with your annual statement. If you cannot find it, the National Zakat Foundation suggests searching the fund's name on a fund-data site such as Trustnet, which lists each fund's breakdown by asset type.
A different method
Zaytuna College's calculator counts all retirement funds, such as a 401(k), but lets you subtract the tax you would owe and, if you would have to withdraw to pay the zakat, the early-withdrawal penalty. Use the method your scholar follows and enter the result in the pension box.
Worked example: £80,000 defined-contribution pot, 30% in zakatable assets
Pension
£24,000.00
Zakatable wealth
£24,000.00
Zakat (2.5%)
£600.00
30% of £80,000 = £24,000 entered as the pension amount. Prices: gold £90.80/g, silver £1.25/g (National Zakat Foundation nisab page, 17 October 2026); silver nisab £765.45 (612.36 g).
Not according to the National Zakat Foundation: defined-benefit schemes are not zakatable.
Do I pay zakat on my 401(k)?
Zaytuna College counts it, after estimated taxes and any penalty for withdrawing early. The National Zakat Foundation's method uses the fund's zakatable assets.
Based on: NZF-DB; NZF-G p5; ZAY (see sources and method). An estimate, not a fatwa: ask a scholar about your own situation.