Scissors on EPF rate of interest, workers mentioned – how will they survive after retirement?

Priyanka Singh, New Delhi: When the Provident Fund (PF) deduction began, 12% curiosity was out there, but it surely continued to say no. Now it has stopped at 8.1%. What are you able to do, the choice of the federal government is… This was to say of a authorities faculty trainer, Sant Ram. Sant Ram explains that the lifetime of a salaried individual goes for the bills of the family and the way forward for the youngsters. There is barely PF within the identify of financial savings. This is the assist of previous age. Some a part of their wage is deducted for his or her future, in order that on the age when they aren’t in a position to do something, then this financial savings will come in useful. But, the way in which rates of interest are falling constantly, it doesn’t appear that cash can be sufficient to outlive in previous age.

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Government worker Sonia says that PF acts as a sheet for the retired worker, from which he covers his physique. According to which inflation is rising, it may be estimated from this within the coming time. An individual will spend 25 to 30 thousand rupees in residing a standard life. Once curiosity was out there on the fee of 9%. So far the speed has been lowered to 1.4%. Where ought to they turn out to be the assist of their authorities workers, however quite the opposite, they’re making a dent within the assist they’ve.

On the opposite hand, Vijay Narayan, who’s working in a non-public firm, mentioned that solely PF facility is accessible in non-public jobs. Earlier, much less PF was deducted in keeping with the wage. Even then good curiosity was out there, as there was 12% rate of interest. Now we’re getting double funds deducted as in comparison with earlier, but nothing a lot profit is seen.

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Another authorities worker Dharmendra Kumar informed that earlier there was much less wage, then extra curiosity was out there. Now there may be extra wage and extra funds are deducted, however because of much less curiosity there’s a loss. I get PF deducted from 18 years. If curiosity continues to be obtained at this fee, then there can be a lack of 1 to 2 lakhs until my retirement. In the long run, if the rate of interest is even decrease, then extra losses must be incurred. It is the request of the federal government to supply the safety of a greater life after retirement to its workers. In this manner, decreasing the rate of interest will solely harm. It can be tough to make a residing after retirement.