Today, when I worked to install Redmine 3.2 , I found an error “Redmine requires Bundler 1.5.0 or higher (you’re using 1.3.5)” but I had installed Bundler 1.11
a lot of research, I found the solution which fixed the issue by below
First remove Bundler
apt-get remove bundler
Then install Bundler again
sudo gem update
bundle install
It should work now for you too.