'India’s middle class could be broke 45': CA warns of looming retirement crisis

India’s middle class is on a collision course with a retirement disaster — and most won’t see it coming until it’s too late, warns CA and wealth advisor Kanan Bahl. His grim prediction: your income could dry up by 45, not 60.

"Forty-five is the new sixty," Bahl declares in a LinkedIn post urging professionals to ditch old retirement assumptions. In an era of rapid job shifts and tech disruptions, he argues, middle-class Indians can no longer count on stable incomes lasting till traditional retirement.

While technological change will create new jobs, Bahl raises a sharp question: “What if you can’t adapt for any reason whatsoever?” He advises planning as if income stops at 45, not 60—save aggressively, invest wisely, and curb spending.

India’s younger workforce isn’t helping its own case, he notes. “People making ₹25 lakhs p.a. are living paycheck to paycheck,” Bahl writes. Gen Z, in particular, is “taking debt to attend concerts to look cool on Instagram,” fueling a toxic cycle of lifestyle inflation and financial fragility.

The warning isn't abstract. The DSP Pension Fund projects India’s retirement savings gap will balloon to $96 trillion by 2050. “You’ll start seeing this problem at scale within 10 years,” Bahl warns.

To avoid financial ruin, he urges disciplined investing in government schemes like the Employees’ Provident Fund (EPF) and National Pension System (NPS). Though they lock in funds for decades, Bahl calls them “perfect instruments for spendthrifts” because they enforce savings habits and deter impulsive spending.

His message is stark and urgent: “Don’t be a victim of this ‘show-off’ pandemic. Live frugally, save aggressively, and invest wisely.”