Plan your retirement income with Systematic Withdrawal Plan. See how long your corpus lasts with monthly withdrawals and at what return rate it lasts indefinitely.
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Calculate SWP Duration
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Assumes 8% annual return on the corpus. Monthly withdrawal fixed throughout.
| Corpus | ₹15K/month | ₹25K/month | ₹40K/month | ₹60K/month |
|---|---|---|---|---|
| ₹25 lakh | 26 yrs | 13 yrs | 7 yrs | 4 yrs |
| ₹50 lakh | Indefinite ✓ | 30+ yrs | 16 yrs | 9 yrs |
| ₹1 crore | Indefinite ✓ | Indefinite ✓ | Indefinite ✓ | 23 yrs |
| ₹2 crore | Indefinite ✓ | Indefinite ✓ | Indefinite ✓ | Indefinite ✓ |
"Indefinite" means monthly return on corpus exceeds withdrawal — the corpus keeps growing.
The popular 4% rule was built on US market data and 2-3% inflation. India's average CPI inflation runs 5-7%. A safer withdrawal rate for Indian retirees is 3-3.5% annually.
₹50K/month goal
Annual need: ₹6L
At 3.5% rate → corpus needed: ₹1.71 crore
₹1L/month goal
Annual need: ₹12L
At 3.5% rate → corpus needed: ₹3.43 crore
₹2L/month goal
Annual need: ₹24L
At 3.5% rate → corpus needed: ₹6.86 crore
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Systematic Withdrawal Plan (SWP) lets you withdraw a fixed amount from your mutual fund every month. It's ideal for retirement income — your corpus continues to grow while you draw a monthly income.
If your monthly return on corpus exceeds your withdrawal, the corpus lasts indefinitely. Example: ₹50L at 8% return earns ₹33,333/month; if you withdraw ₹25,000/month, the corpus keeps growing.
SWP from equity funds: gains taxed as LTCG (10% above ₹1L if held >1 year) or STCG (15% if held <1 year). Debt funds are taxed as per your income slab (LTCG with indexation benefit removed from FY 2024-25).
In dividend option, the fund house decides if and when to pay dividends - you have no control. With SWP, you set the exact withdrawal amount and date every month. SWP is also more tax-efficient: only the capital gains portion of each withdrawal is taxed, unlike dividends which are taxed at slab rates on the entire amount.
Each SWP withdrawal has two components: return of capital (tax-free) and capital gains (taxed). For equity funds, LTCG held over 1 year is taxed at 12.5% on gains above Rs 1.25L/year; STCG at 20%. Since the oldest units are redeemed first (FIFO), most SWP withdrawals after a few years qualify as LTCG, making SWP tax-efficient for retirement income.
The US 4% rule may need adjustment for India due to higher inflation of 5-7% vs the US 2-3%. A 3-3.5% withdrawal rate is more conservative for Indian retirees. On a Rs 2 crore corpus, that is Rs 60,000-70,000/month. The SWP calculator helps model different withdrawal rates against your specific corpus.
Yes - a popular retirement strategy. Keep your corpus in a balanced advantage fund or large-cap equity fund and set up a monthly SWP. Key rule: if the market falls more than 20%, reduce withdrawals for that year to avoid selling units at a loss. Keep 12-24 months of expenses in a liquid fund as a cash buffer.
Using the 3.5% safe withdrawal rate for India (adjusted for 6% inflation): for Rs 50,000/month (Rs 6 lakh/year), you need Rs 1.7 crore corpus. For Rs 1 lakh/month: Rs 3.4 crore. For Rs 2 lakh/month: Rs 6.8 crore. These figures assume a balanced allocation returning 9–10% p.a. Use the FIRE calculator to work out how many years of savings are needed to reach your target corpus.
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