‘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.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
13 minutes ago
- Time of India
Will minimum EPS-95 pension be hiked this festive season? Govt responds in Parliament
What is EPS? Academy Empower your mind, elevate your skills Questions on minimum pension under EPF-95 Is there any decision expected ahead of the upcoming festive season? Pensioners in India are looking forward to a long-awaited increase in the minimum monthly pension amount under the Employees' Pension Scheme (EPS-95). The current minimum pension is Rs. 1,000 per month, but trade unions, pensioners' associations and public representatives have been urging the government to raise the government has also confirmed that it has received many requests from trade unions and public representatives for an increase in the minimum Employee Pension Scheme (EPS) is a retirement benefit plan introduced by the Indian government in 1995 to provide financial security to employees after they stop working. It is part of the Employees' Provident Fund (EPF) framework. While, EPF serves as a lump sum retirement corpus, EPS provides pension upon retirement. This pension varies depending on the member salary and years of service. The funds in EPS need not be contributed Wealth Online tells you in detail the questions asked by the Members of Parliament on the minimum pension hike and the government's reply on the read: Higher pension: These central government employees to get pension hike due to minor salary increase Members of Parliament Vaiko and M. Shanmugam asked various questions on minimum pension.(a) Whether the demand to enhance minimum pension in Employees Pension Scheme (EPS-95) is under consideration of Government for a long time?(b) If so, by when Government will take a decision, especially in view of mounting pressure from the trade unions and the court judgments?(c) The constraint in increasing the EPF pension when there are sufficient funds available in the corpus fund and the accumulated unclaimed funds? and(d) Whether Government would expedite a decision in view of coming festival season?The government responded to the questions in Parliament:Representations have been received from various stakeholders including trade unions and public representatives to increase the minimum pension under the Employees' Pension Scheme (EPS), 1995 from existing Rs. 1000/- per month. The EPS, 1995 is a "Defined Contribution-Defined Benefit" Social Security Scheme. The corpus of the Employees' Pension Fund is made up of (i) contribution by the employer @ 8.33 per cent of wages; and (ii) contribution from Central Government through budgetary support @ 1.16 per cent of wages up to an amount of Rs.15,000/- per month. All benefits under the scheme are paid out of such accumulations. The fund is valued annually as mandated under paragraph 32 of the EPS, 1995 and as per the valuation of the fund as on 31.03.2019, there is an actuarial deficit. However, the Government is providing a minimum pension of Rs. 1000 per month to the pensioners under the EPS, 1995 by providing budgetary support, which is in addition to the budgetary support of 1.16 per cent of wages provided annually towards EPS to Employees' Provident Fund Organisation (EPFO).There is no confirmation of a pension hike before the festive season. The government did not commit to a timeline but reiterated that it continues to provide budgetary support to ensure the minimum Rs 1,000 pension.
Time of India
an hour ago
- Time of India
80% of workers rely on AI, but nearly 1 in 2 don't inform their boss: Survey
A growing number of American workers are independently integrating AI into their daily work, often without employer knowledge or guidance, according to a recent survey of 1,000 US employees across industries, conducted by Gusto. As ChatGPT surpasses one billion users globally, 80% of US workers report using AI at work, with 36% calling it 'essential' to their jobs. Yet only 26% say their organisations have clear AI policies, signalling a major gap between top-down governance and on-the-ground adoption. The report reveals that 45% of workers have used AI without informing their managers, with Gen Z and tech workers leading covert adoption. Two-thirds (66%) are personally paying for AI tools, underscoring a bottom-up transformation in how technology is being deployed across the workforce. However, this quiet shift comes with unease: 47% of employees have taken precautionary steps due to AI-related uncertainty, including increased savings (34%) and starting side hustles (24%). Skill inflation is also on the rise. One in four workers admitted to exaggerating their AI skills during hiring, often learning on the job or catching up later. This 'fake it till you make it' trend reflects growing pressure to appear AI-literate amid limited access to formal training. Google Trends data further shows rising anxiety nationwide about AI's impact on jobs, with California, Florida, and Texas showing the highest search volumes. When adjusted for population, Colorado and Mississippi rank highest per capita, with top concerns centred around job loss and the future of tech employment. Despite the enthusiasm for AI tools, the workforce is divided: 36% see AI as essential, while the rest view it as experimental. Still, 53% of workers say their productivity would suffer if AI were banned, highlighting its growing integration into day-to-day tasks. Transparency remains low, with only 32% proactively disclosing their use of AI, while the rest offer minimal or no explanation. This lack of clarity raises concerns around feedback, task assignment, and evaluation processes, making it harder for managers to assess work quality. Compounding these issues is a growing compensation gap. While 39% of companies have seen ROI from AI usage, only 17% of workers report receiving raises, bonuses, or recognition tied to AI-enhanced performance. Nearly a quarter (24%) believe their employers are benefiting financially while they see no personal gain, and 17% feel they're being asked to do more without additional pay. The findings underscore a quiet yet profound shift in workplace dynamics. Workers are leading AI adoption without waiting for top-down direction, creating pressure on employers to formalise policies, provide training, and ensure equitable benefits. Failure to do so risks widening the disconnect between corporate leadership and frontline innovation.
Time of India
2 hours ago
- Time of India
A Malayali's effort to put Indian arrack on the world map
Exclusive It's free content, simply login/signup to unlock Get in-depth Industry Insights and Analysis through our 'Exclusive' content, presented to you by our esteemed panel of writers, for free Continue with Google Continue with Linkedin Continue with Facebook Continue With Email ID More Sign in options By continuing, you agree to the T&C, Privacy Policy and Prohibited Content Policy. This same account can be used across all ET B2B portals.
