The middle class in India faces a difficult financial reality. The rise in life costs – covering housing, education and health care – exceeds wage growth, which makes stability more difficult to achieve. Limited access to quality public services provide more household budgets, leaving many families in a perpetual financial obligation.
In the midst of these challenges, the Authorized accountant Nitin Kaushik went to X (formerly Twitter) to explain why many middle class Indians feel trapped and, more importantly, how they can free themselves.
“Being the middle class is not only to win decently-it is a question of fighting against financial difficulties at each stage,” he wrote, before implementing problems and key solutions:
“1️⃣ retirement? Most are not prepared
Although the EPF and the PPF seem to be good options, inflation erodes savings. 1 ₹ Cr today will not be worth much in 30 years.
✅ Correction: Start SIPs in common stock funds. Aim for annual expenses of 20-30x for a secure retirement.
2️⃣ Education costs are a silent killer
School and college fees increase more quickly than wages. As a child reaches university, costs could double.
✅ Correction: Building an early education fund – PPF, Sukanya Samriddhi (for girls) or equity investments can help stay in advance.
3️⃣ A medical emergency can ruin you
Health insurance provided by employers may not be sufficient when medical bills have reached 10 L +.
✅ Correction: Buy a 10-20 L health insurance plan and add serious sickness coverage for financial protection, “warned Kaushik.
“💡 💡 💡 Truth Bomb: Most families in the middle class work hard but remain trapped in this cycle,” he concluded.
Beyond personal financial struggles, systemic problems such as bureaucratic ineffectiveness and low infrastructure limits ascending mobility. The families of the middle class often find themselves taken between the management of daily expenses and the security of their future, creating a cycle of financial stress that is difficult to escape.
