Provident Fund or the PF is been deducted as 12% of basic salary from Salaried Peoples salary. And it is the same for everyone whether you earn Rs 10K or Rs 5Lakh. Now for a lot of people it is the only retirement fund and they don't invest in anything at all. This is mainly because their inland salary is been gone to yeh EMIs.
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I have seena lot of people in India where they are spending 90% of their income in expenses and EMIs and the 10% is kept for recreational fund. Now this is a very wearing sign. The problem is 12% of basic salary is quite less. If you are earning 1 Lakh, the basic might be Rs 50K and them 12% on it would be 6K and then employees add another 6K which would be around Rs 12K per month.
So eventually you are only investing just 12% of your salary as retirement fund which I feel quite less. Minimum we should be investing 20% that's also feel less seeing the inflation. But still it should be bare minimum to get started. If you are investing anything less then its not sufficient.
People might argue that they have the house which will take care but the problem is you need liquid money on your retirement, otherwise you have to sell your house and since it would be old house, it might not fetch good amount. So having just a house and PF for your retirement might not be a great thing. You need other liquid investments too, which will help you in your retirement phase.
In India, people usually wants son because there is a concept that parents would be staying with their kids after retirement. But thus trend is slowly going. Now you have to think about yourself whether you have a son or daughter. Might be no one will come to support you in your retirement age and thus you have to have that retirement fund with you.
