Retirement Age in Corporates: The Startling Reality

Retirement age in corporates has shifted significantly. For individuals in their early 40s working in corporate environments, the unsettling truth is that the retirement clock may have already started. Many companies seem to have quietly decided that this age isn’t 60—it is, in fact, between 42 to 45.

Investment advisor A K Mandhan has raised alarms across India’s professional landscape with a stark evaluation of the corporate layoff trend. He asserts, “The retirement age in large corporates is not 60… it is between 42 to 45.” According to him, senior employees are being labelled “payroll cholesterol” and are being shown the exit, not due to their performance, but simply for cost-cutting reasons.

Automation and Cost-Cutting Trends

This phenomenon is not unique. Saurabh Mukherjea, the founder of Marcellus Investment Managers, has echoed similar concerns. He highlights a surge in automation coupled with aggressive cost-cutting across various sectors, including IT, finance, and consulting. Mukherjea warns that India is experiencing the “death of salaried employment” as a reliable long-term career path.

It’s noteworthy that AI and streamlined business models are not just replacing entry-level jobs; they are also affecting middle managers, especially those in the 42–45 age demographic.

The Harsh Job Market Scenario

A K Mandhan pointedly remarked, “You’ve got 10 million graduates coming in every year and fewer jobs at the bottom. But companies are also cutting the middle.” This stark reality means that mid-career professionals have limited opportunities, lacking job security, and face a cutthroat market when laid off.

Financial Risks for Employees

Mandhan’s message resonates loudly: for individuals in this age group, the absence of passive income streams—such as rental properties, investments, or the capability to operate their own business—poses a significant financial threat to their families. Receiving a pink slip at 45 could lead to an unexpected and unplanned retirement without adequate financial backing.

Rethinking Career Strategies

Mukherjea advocates for an overhaul of the traditional “graduate and secure a job” mindset. He stresses that the job opportunities simply will not be available. The imperative now is for families to adopt a more self-reliant approach through entrepreneurship and investing; this is not merely an option but a vital strategy for survival in the current economic climate.