‘45 is the new 60': CA warns of retirement crisis for India's middle class
Rising lifestyle costs, stagnant incomes, and insufficient long-term savings are pushing people closer to financial burnout, says chartered accountant and wealth advisor Kanan Bahl.
In a widely shared LinkedIn post, Bahl cautioned: '45 is the new 60. Don't make retirement plans as if you'll be earning till 60.' The advisory comes amid concerns that rapid changes in technology and hiring patterns may cut short many private sector careers.
'Jobs will increase with AI and automation, but not everyone will be able to adapt,' he wrote. 'Do enjoy your life — but save aggressively and invest wisely as if you'll only earn till 45.'
Bahl pointed to rising 'lifestyle inflation' among young professionals, particularly Gen Z, as a key issue. 'People are spending more than they should — some even taking loans to attend concerts and post about it on Instagram,' he said. 'Even those earning ₹ 25 lakh a year are often living paycheck to paycheck.'
He urged salaried professionals to make better use of schemes like the Employees' Provident Fund (EPF) and National Pension System (NPS), which offer tax benefits but also enforce financial discipline through long lock-in periods. 'These are perfect instruments for spendthrifts,' he said.
Bahl also cited a projection by DSP Pension Fund, warning that India's retirement savings gap could grow to $96 trillion by 2050. 'We will start seeing the cracks in just 10 years,' he warned.
The post has sparked a wave of responses online, with many LinkedIn users echoing the concerns.
'Long-term peace of mind is greater than short-term flex,' wrote one user. Another added, 'Private sector jobs are not built to last — most of us will be asked to move on by 45.'
The post follows similar concerns raised earlier by Ashish Singhal, CEO of fintech firm PeepalCo, who said India's middle class was silently absorbing economic shocks without headlines, bailouts or public discussion. 'The biggest scam no one talks about? Middle-class salaries,' Singhal had said in his viral post.
With cost of living rising and AI disrupting traditional career paths, experts say it may be time to rethink not just retirement planning — but what financial security really looks like.
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