Retirement Withdrawal Calculator India – Will My Money Last?

Retirement Withdrawal Calculator

Will I outlive my savings? Use this calculator to stress-test your retirement corpus against inflation and monthly expenses.

This withdrawal calculator assumes you already have a retirement corpus. If you are still building your retirement savings, first use our Retirement Planning Calculator India.

Retirement Withdrawal Calculator (Inflation Adjusted)

Retirement Scenario
Yrs
₹
₹
%
*Post-tax annual return
%
Note: Your monthly withdrawal increases once every year by the selected inflation rate to maintain purchasing power.
Sustainability Check
Your Money Will Last Until
Age 82
(22 Years, 4 Months from now)
SWR: 6.0% (Moderate Risk)
₹0
Total Interest Earned
₹0
Total Withdrawn
Insight: Inflation has a powerful compounding effect. Try increasing it by 1%.
Yearly Depletion Schedule
YearOpening BalanceYearly Withdrawal (Inflated)Interest EarnedClosing Balance

Understanding Retirement Corpus Depletion

Retirement planning isn’t just about accumulating a large sum; it’s about ensuring that sum lasts as long as you do. The biggest threat to a comfortable retirement is Inflation. Most basic calculators assume your monthly expenses remain fixed (e.g., ₹50,000/month) for 30 years. In reality, due to 6% inflation, that ₹50,000 requirement will double to ₹1 Lakh in just 12 years.

The Hisabhkaro Advantage: Unlike standard tools, this calculator increases your monthly withdrawal amount once every year to match the Inflation Rate you select. This provides a “Real Value” stress test of your finances.

The 4% Rule vs. The Indian Context

In global finance, the “4% Rule” suggests that if you withdraw 4% of your retirement portfolio in the first year and adjust that amount for inflation annually, you will likely never run out of money over a 30-year retirement. The 4% rule is based on US inflation. In India, 6–7% inflation makes it risky for long retirements. Read detailed India-specific analysis .

Does the 4% Rule work in India?

India is a high-inflation, high-growth economy. While US inflation hovers around 2-3%, India averages 6-7% according to the World Bank Data. However, Indian interest rates are also higher. Financial experts in India often suggest a Safe Withdrawal Rate (SWR) of 5% to 6% provided your corpus is invested in a mix of Equity and Debt.

  • Conservative SWR: 4% (Corpus lasts 35+ years even in bad markets)
  • Moderate SWR: 5-6% (Standard for 20-25 year retirement)
  • Aggressive SWR: >7% (High risk of depleting corpus in <15 years)

The Bucket Strategy for Withdrawals

To make your money last longer, don’t keep everything in a Savings Account (low return) or everything in Stocks (high risk). Use the Bucket Strategy:

  1. Bucket 1 (Immediate – Years 1-3): Keep 3 years of expenses in Liquid Funds or FDs. This protects your expenses from market crashes.
  2. Bucket 2 (Medium Term – Years 4-10): Invest in Hybrid or Debt Funds. These offer stability with better returns than FDs.
  3. Bucket 3 (Long Term – Years 11+): Invest in Equity Mutual Funds. This bucket grows untouched for a decade, beating inflation significantly.

Frequently Asked Questions (FAQs)

Why does my monthly withdrawal increase every year in this calculator?
This mimics real life. If a loaf of bread costs ₹50 today, it might cost ₹53 next year due to inflation. To maintain your current standard of living, your withdrawal must rise. If we kept the withdrawal fixed, your purchasing power would drop by half in 12 years.
What is a good “Return on Corpus” rate to assume?
For a retired individual, capital protection is key. A portfolio mixed with SCSS (Senior Citizen Savings Scheme), Debt Funds, and some Equity usually generates 8% to 9% post-tax returns. Avoid assuming 12-15% returns, as you cannot afford high equity exposure in retirement.
How does taxation affect my withdrawals?
Taxation eats into your returns. According to AMFI Tax Rules:
  • FD/SCSS Interest: Fully taxable at your slab rate.
  • Debt Mutual Funds: Taxed at slab rate (if bought after Apr 1, 2023).
  • Equity SWP: Only gains > ₹1.25 Lakh/year are taxed at 12.5%.
Systematic Withdrawal Plans (SWP) from Equity/Hybrid funds are generally the most tax-efficient way to draw income compared to FDs or Annuities.

If you plan to withdraw regular monthly income from mutual funds in a tax-efficient manner, you can use our SWP Calculator to understand fixed withdrawals and potential capital erosion before optimizing for taxes.

What if my corpus depletes too early?
If the calculator shows depletion in less than 20-25 years, you have three options: 1. Reduce Expenses: Lower your initial monthly withdrawal. 2. Work Longer: Delay retirement to let the corpus grow. 3. Increase Risk: Slightly increase equity exposure (Bucket 3) to boost returns, though this adds market risk.
Disclaimer: This Retirement Withdrawal Calculator provides illustrative estimates based on user inputs and assumed rates of return and inflation. It does not account for taxes, market volatility, sequence-of-returns risk, or individual financial circumstances. Results are for educational purposes only and should not be considered financial advice. Please consult a qualified financial advisor before making retirement or investment decisions.
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