"45 Is The New 60": CA Warns India's Middle Class Could Be Broke By Mid-40s

India's middle class could face a retirement crisis by the age of 45 owing to rising lifestyle expenses, limited income, longevity and insufficient long-term savings, Chartered Accountant and wealth advisor Kanan Bahl has said.

In a long LinkedIn post, Mr Bahl wrote, “45 is the new 60,” adding, “Don't make your retirement plans as if you are going to be employed until 60.”

According to Mr Bahl, while “jobs will increase” with advances in technology, many people may struggle to adapt “for any reason whatsoever.” This could lead to an earlier-than-expected end to their earning years.

“Do enjoy your life. But save aggressively and invest wisely as if you are going to have income only until 45,” he advised.

He pointed to what he calls a worrying pattern of “spending too much” and lifestyle inflation, especially among the younger generation.

“Gen Z is taking debt to attend concerts to look cool on Instagram. People making Rs 25 lakhs p.a. are living paycheck to paycheck,” Bahl said, while cautioning against elevating “lifestyle expenses to such levels where you can barely save for the future.”

He urged salaried employees to use government-supported schemes such as EPF (Employees' Provident Fund) and NPS (National Pension System), which offer long-term tax benefits.

“They do block your money for a significant time (40% of NPS corpus is only withdrawable by your nominees after your death), but that ensures discipline and further that you don't splurge that money. Perfect instruments for spendthrifts,” he wrote.

He also referred to a projection by DSP Pension Fund that estimates India's retirement savings gap will balloon to $96 trillion by 2050. “You will start seeing this problem at scale within 10 years,” he warned, urging people to “live frugally, save aggressively and invest wisely.”

Here's the post:


Mr Bahl's post has sparked a discussion on LinkedIn, with many users acknowledging the pressure of rising costs and the need to rethink traditional retirement timelines.

One user commented, “So true! It's so easy to get caught up, but long-term financial peace > short-term flex.”

Another remarked, “Gen Z are so carried away by the consumerist bug, that they lose sight of their retirement goals.”

“With private sector dominant, one should either move on or get packed off by 45, as salary levels are unsustainable,” read another comment.

Earlier, a Bengaluru CEO's post on "middle-class salaries" sparked a discussion online. Ashish Singhal, co-founder and Group CEO of PeepalCo, said that with soaring expenses and stagnant salaries, the middle-class was quietly absorbing the economic shock, with no bailouts, no headlines and barely any conversation. "The biggest scam no one talks about? Middle-class salaries," he wrote, explaining the crisis this group faces.

In his LinkedIn post, Mr Singhal also spoke about how artificial intelligence (AI) was quietly threatening white-collar jobs, and the ultra-rich had gained seven times in a decade.