"I have ₹1 Crore. I am set for life, right?"
If I had a rupee for every time I heard this, I'd have my own 1 Crore by now. It sounds like a massive, magical figure—a finish line. But when you stop working, that mountain of cash has to turn into a monthly stream of water. And the flow isn't as heavy as you might think.
Let's strip away the dreams and look at the cold, hard math of what ₹1 Crore actually buys you in monthly freedom.
1. Safe Monthly Income from ₹1 Crore (FDs & SCSS)
Most Indian parents love this route. You take your ₹1 Crore, walk into a bank or post office, and lock it in. It feels safe. You sleep well.
Here is what that looks like in 2026:
- Senior Citizen Savings Scheme (SCSS): ~8.2% Interest.
Monthly Paycheck: ~₹68,333 (Paid Quarterly) - Post Office MIS (POMIS): ~7.4% Interest.
Monthly Paycheck: ~₹61,666 - Bank Fixed Deposit (FD): ~7.0% Interest.
Monthly Paycheck: ~₹58,333
2. Monthly Income from ₹1 Crore Using SWP (3–4% Rule)
Financial planners argue that your money needs to work harder than a bank FD. Enter the Systematic Withdrawal Plan (SWP) from Mutual Funds.
This is where you keep your money invested in the market (usually Hybrid funds) and pay yourself a "salary" every month.
The Global 4% Rule:
Experts say you should only withdraw 4% of your corpus in the first year to ensure the money lasts 30 years. In India, because our inflation is higher, a 3% to 4% rate is safer.
- Safe Withdrawal (4%): ₹4 Lakhs / Year = ₹33,333 / Month.
- Aggressive Withdrawal (6%): ₹6 Lakhs / Year = ₹50,000 / Month.
"Wait, only ₹33,000? The bank gives me ₹58,000!"
Yes, but there is a massive difference. In the bank, your ₹1 Crore stays ₹1 Crore forever (and loses value). In an SWP, the remaining money grows. This means you can increase your withdrawal every year to keep up with rising milk and petrol prices.
Design Your Pension
Don't guess. Use our tool to see exactly how long your money lasts at different withdrawal rates.
Open SWP Calculator3. The Inflation Trap: When ₹60k Becomes ₹30k
Here is the scary part that no bank manager tells you: Inflation halves your money every 10-12 years.
If you lock yourself into a fixed income of ₹60,000 today, it feels comfortable. You can buy groceries, pay bills, and travel a bit. But watch what happens:
Purchasing Power of that same ₹60,000:
- Today: ₹60,000 value (Comfortable)
- 10 Years Later: ₹33,500 value (Tight)
- 20 Years Later: ₹18,700 value (Struggling)
By the time you are 80, that "safe" FD income won't even cover your medical bills. This is why you need growth. Check this reality using our Inflation Calculator.
4. Comparison: Where Should You Park It?
| Feature | Bank FD / SCSS | Mutual Fund (SWP) |
|---|---|---|
| Monthly Payout | High (~₹60k-68k) | Moderate (~₹35k-45k) |
| Taxation | As per Income Slab (High Pain) | Capital Gains (Low Tax) |
| Inflation Protection | Zero (Income is Fixed) | High (Income Grows) |
| Corpus Value | Flat (₹1 Cr forever) | Potential to Grow (e.g. to ₹1.5 Cr) |
5. The Verdict: How Much Should You Withdraw?
Let's be realistic. If you want your ₹1 Crore to support you for 25-30 years of retirement without stress:
- Do not withdraw more than ₹40,000 - ₹45,000/month in the beginning. Treat the rest as a buffer.
- Mix It Up: Don't put all your eggs in one basket. Keep 30-40% in SCSS for peace of mind. Put the rest in Conservative Hybrid Funds for growth.
- Review Every Year: Inflation won't wait for you. If your investments grow, give yourself a small raise.
Is ₹1 Crore enough? For a simple life in a smaller town, maybe. For a metro city lifestyle? You might need to check your gap using our Retirement Planning Calculator.