Dr. Monzer Kahf, a prominent economist and counselor states: “Insurance-based pension systems are permissible. They exist in the Muslim countries for more than a hundred years and are discussed and approved by great Shari’ah scholars. Besides, insurance itself is permissible as it does not violate any of the Shari’ah precepts and it is a useful or necessary contract. (There are scholars who argue otherwise on the basis of Gharar, but I don’t think that their argument can really be substantiated).