Latest news with #KananBahl
Mint
07-07-2025
- Business
- Mint
‘45 is the new 60': CA warns of retirement crisis for India's middle class
India's middle class could be headed for a retirement crisis, much earlier than expected, with financial advisors warning that many salaried professionals may struggle to remain employed beyond the age of 45. 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.
NDTV
04-07-2025
- Business
- NDTV
"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.
Time of India
03-07-2025
- Business
- Time of India
'Gen Z taking debt to attend concerts to look cool on Instagram': CA shares a 'big retirement problem' reaching India
Tired of too many ads? Remove Ads India's middle class is heading toward a retirement crisis—and most won't realise it until it's too late, warns CA and wealth advisor Kanan Bahl. His stark warning: your income could run out by age 45, not 60."I predict that retirement is going to be a very big problem in India. The DSP Pension Fund projects that the retirement savings gap in India will rise to $96 trillion by 2050. You will start seeing this problem at scale within 10 years. Don't be a victim of this "show-off" pandemic. Live frugally, save aggressively and invest wisely!" said Kanan Bahl.45 is the new 60. Don't make your retirement plans as if you are going to be employed until 60.[1] Jobs will increase but ...I am sure major part of the workforce will adapt to the change and even advancement in technologies have always led to a net increase in jobs. But what if you can't adapt for any reason whatsoever?Do enjoy your life. But save aggressively and invest wisely as if you are going to have income only until 45.[2] Are we spending too much?We're living in much more uncertain times than our parents' generation and are spending way more than Z is taking debt to attend concerts to look cool on instagram. People making ₹25 lakhs p.a. are living paycheck to elevate your lifestyle expenses to such levels where you can barely save for the future.[3] What to do?Invest in products like the EPF and NPS through employers which offer tax breaks in the new tax regime, offer tax free compounding and do block your money for a significant time (40% of NPS corpus is only withdraw-able by your nominees after your death) but that ensures discipline and further that you don't splurge that money. Perfect instruments for spendthrifts."So true! It's so easy to get caught up, but long-term financial peace > short-term flex. Really appreciate the reminder to make disciplined choices today so we're not left struggling tomorrow, Kanan Bahl!" said one user."Well put.. On point 3 I recommend that people take help and solve for their goals and not lock up too much for is locked till 60 and one needs to have enough assets to tide over between 50 and 60, espcially thats when children's education goals etc also come. Also a lot of corporate professionals want to quit at 45 and start a consultancy which means there is need for some capital there as well. NPS and EPF while great from a discipline POV, savers need to ensure there is liquidity as well in their finances," said another user.
