Use this SWP Calculator (India) to plan your Systematic Withdrawal Plan from mutual funds. Instantly estimate monthly withdrawal amount, remaining corpus, total withdrawal, and growth after returns and tax assumptions—perfect for retirement income planning.
Systematic Withdrawal Plan Calculator + Inflation Visualizations
Visualize inflation's impact on withdrawals, purchasing power, and investment growth
This amount will increase annually with inflation to maintain purchasing power
Nominal Return
10%
Real Return
4.0%
India's long-term average: 5-7%. Inflation reduces purchasing power over time.
If checked, withdrawal amount increases each year by inflation rate to maintain purchasing power
Tax & Duties (India)
Start Month
Start Year
Visualization Tips: Use the chart toggles above each graph to switch between different views of inflation impact, withdrawal growth, and purchasing power decay.
Net Cash Received (after tax + STT)
₹0
What you actually receive in-hand (nominal)Gross Withdrawals
₹0
Final Corpus
₹0
Total Tax (CG)
₹0
Total STT
₹0
Real Return (after inflation)
0%
Nominal return adjusted for inflation
Withdrawal Sustainability
—
Years your corpus can support at current purchasing powerLast Year's Withdrawal
₹0
Purchasing Power Loss
0%
Inflation Impact Summary:
Calculating...
Inflation Impact Visualizations
Visualize how inflation affects withdrawals, purchasing power, and investment growth over time. Use toggles to switch between different views.
Withdrawal Growth Over Time
Actual bank deposits
Purchasing power
Purchasing Power Decay
Value erosion
Money lost to inflation
Corpus: Nominal vs Real
Nominal value
Real value
Inflation Impact Dashboard
Real return
Power loss
The Silent Killer in Retirement Planning: Inflation
Most SWP calculators fail you because they ignore inflation—this one doesn't. It shows you real purchasing power, not just nominal numbers. Your ₹50,000 today ≠ ₹50,000 in 2035.
Inflation-adjusted withdrawals
Real vs Nominal returns
Purchasing power decay
Post-tax reality
1) The Inflation Reality Check
Monthly Withdrawal: The Dangerous Assumption
If you enter ₹50,000 and DON'T check "Increase withdrawals with inflation", you're planning to live on ₹50,000 forever. But in 20 years at 6% inflation, that ₹50,000 buys what ₹15,500 buys today. Your purchasing power drops by 69%.
Expected Inflation Rate: The Silent Tax
India's long-term average: 5-7%. At 6% inflation, prices double every 12 years. Your ₹1 crore corpus in 2045 has only ₹31 lakhs of today's purchasing power. This is why your grandparents' ₹10,000 monthly pension seems tiny today.
6% = prices double every 12 years
Inflation compounds silently
The Critical Toggle: Inflation Adjustment
✓ ON (Recommended): Withdrawals increase annually to maintain lifestyle. You withdraw ₹1.6L/month in Year 20 to equal ₹50,000 today's purchasing power. Your corpus needs to support exponential growth.
✗ OFF (Dangerous): You live on fixed ₹50,000 forever. Your lifestyle gradually declines as prices rise. By Year 20, your ₹50,000 buys what ₹15,500 buys today. Most retirees regret this choice.
✗ OFF (Dangerous): You live on fixed ₹50,000 forever. Your lifestyle gradually declines as prices rise. By Year 20, your ₹50,000 buys what ₹15,500 buys today. Most retirees regret this choice.
Real Return: What Actually Matters
10% nominal return with 6% inflation = only 3.8% real return. This is your actual wealth growth after inflation eats its share. Formula: [(1.10 / 1.06) - 1] × 100 = 3.77%
Critical insight: You need 4-6% real return to maintain lifestyle while withdrawing. Below 3% real return, you're slowly going broke.
Critical insight: You need 4-6% real return to maintain lifestyle while withdrawing. Below 3% real return, you're slowly going broke.
Visualize the Erosion
Use the chart toggles to see how ₹1 loses value over time. The "Purchasing Power Decay" chart shows the brutal truth most investors ignore. At 6% inflation: Year 5 → ₹0.75, Year 10 → ₹0.56, Year 20 → ₹0.31
2) Tax Reality in an Inflationary Economy
Why Debt Funds (post 2023) Hurt in High Inflation
Debt funds purchased after April 1, 2023 are taxed at your slab rate (up to 30%)—with NO indexation benefit. In high inflation years, you pay tax on nominal gains (including inflation), not real gains. This can wipe out 30-50% of your actual returns.
No inflation adjustment in tax
Tax on illusory gains
Real return can turn negative
Equity's Built-In Inflation Protection
Equity's 12.5% LTCG rate (above ₹1.25L annual exemption) works better in inflation. Companies can raise prices with inflation, so equity returns often outpace inflation—giving you real growth to tax. Historical data: Indian equities have beaten inflation by 4-7% over 20+ year periods.
The Double Whammy
Inflation forces you to withdraw more (to maintain lifestyle) → creates more capital gains → increases your tax bill. Example: Year 1 withdrawal ₹6L creates ₹2L capital gains. Year 20 withdrawal ₹19.2L creates ₹7L capital gains. Your tax liability triples even though lifestyle stays same.
STT & Stamp Duty: Fixed Costs in a Rising World
These costs stay percentage-based. As your withdrawals grow with inflation, these transaction costs grow proportionally—eating 0.001%-0.1% of each withdrawal. Over 20 years, can add up to ₹50,000-₹2,00,000 in total costs.
Real After-Tax Return: The Only Number That Matters
Formula: (Nominal Return - Inflation) - Tax Impact. Example: 10% return - 6% inflation = 4% real return. After 15% effective tax → 3.4% real after-tax return. Most investors only look at nominal 10% and wonder why they're falling behind.
3) Results: The Truth Behind the Numbers
Net Cash Received (Nominal vs Real)
Nominal: The actual rupees hitting your bank account (₹1.2 crore over 20 years).
Real (Inflation-adjusted): What those rupees can actually buy in today's terms (₹65 lakhs purchasing power). If your ₹1.2 crore nominal has only ₹65L real value—you've lost 46% to inflation.
Real (Inflation-adjusted): What those rupees can actually buy in today's terms (₹65 lakhs purchasing power). If your ₹1.2 crore nominal has only ₹65L real value—you've lost 46% to inflation.
The Critical Metric: Real Return
This tells you if you're actually growing wealth or just treading water.
＞5%: Excellent - Building real wealth, lifestyle secure
3-5%: Good - Maintaining purchasing power with buffer
1-3%: Warning - Barely keeping up, risky in bad years
＜1%: Danger - Getting poorer in real terms, plan failing
Negative: Crisis - Wealth destruction, immediate action needed
3-5%: Good - Maintaining purchasing power with buffer
1-3%: Warning - Barely keeping up, risky in bad years
＜1%: Danger - Getting poorer in real terms, plan failing
Negative: Crisis - Wealth destruction, immediate action needed
Last Year's Withdrawal: The Lifestyle Reality Test
Look at Year 20's withdrawal amount. If inflation-adjusted: ₹50,000 → ₹1.6L/month. Can your corpus support this? The "Withdrawal Growth" chart shows if you're planning for reality or fantasy. Pro tip: If Year 20 withdrawal exceeds 8% of final corpus, plan is unsustainable.
Purchasing Power Loss: The Silent Wealth Destroyer
This percentage shows how much inflation has eroded your money over time:
• 6% inflation, 10 years: 44% loss (₹1 → ₹0.56)
• 6% inflation, 20 years: 69% loss (₹1 → ₹0.31)
• 7% inflation, 20 years: 75% loss (₹1 → ₹0.25)
Your entire strategy must overcome this erosion PLUS generate returns for withdrawals.
• 6% inflation, 10 years: 44% loss (₹1 → ₹0.56)
• 6% inflation, 20 years: 69% loss (₹1 → ₹0.31)
• 7% inflation, 20 years: 75% loss (₹1 → ₹0.25)
Your entire strategy must overcome this erosion PLUS generate returns for withdrawals.
The Inflation Gap: Money Lost Forever
The difference between Nominal corpus (₹80L) and Real corpus value (₹50L) = ₹30L inflation gap. This ₹30L is purchasing power inflation has stolen from you. Cannot be recovered. Good planning minimizes this gap through higher real returns. Target: Keep inflation gap below 35% of nominal corpus.
4) Building Inflation-Resistant Withdrawals
Most retirement plans fail because they use today's expenses, not tomorrow's prices. Here's how to build resilience:
Always inflation-adjust withdrawals
Target 5%+ real returns
Watch inflation gap quarterly
Stress test with 8% inflation
✓ Strategy A: Inflation-Adjusted Withdrawals (RECOMMENDED)
How it works: Start with ₹50,000/month, increase by actual inflation each year. In Year 20, you withdraw ₹1.6L/month to maintain exact same lifestyle.
Reality check: Your corpus must support exponential growth. Requires:
• 60-70% equity allocation for growth
• Real returns of 4%+ minimum
• Initial corpus 20-25x annual withdrawal
Who it's for: Anyone who doesn't want lifestyle compromise. 95% of successful retirees use this.
Reality check: Your corpus must support exponential growth. Requires:
• 60-70% equity allocation for growth
• Real returns of 4%+ minimum
• Initial corpus 20-25x annual withdrawal
Who it's for: Anyone who doesn't want lifestyle compromise. 95% of successful retirees use this.
⚠ Strategy B: Fixed Withdrawals + Declining Lifestyle
How it works: Keep withdrawals fixed at ₹50,000. Accept that in Year 10, it buys only ₹28,000 worth. In Year 20, only ₹15,500 worth.
Reality check: Your standard of living drops 44% in 10 years, 69% in 20 years. You'll need to:
• Supplement with pension/rental income
• Gradually reduce expenses (smaller home, less travel)
• Accept lifestyle decline
Who it's for: Those with guaranteed pensions covering 60%+ expenses, or who plan to drastically reduce spending. High risk of regret.
Reality check: Your standard of living drops 44% in 10 years, 69% in 20 years. You'll need to:
• Supplement with pension/rental income
• Gradually reduce expenses (smaller home, less travel)
• Accept lifestyle decline
Who it's for: Those with guaranteed pensions covering 60%+ expenses, or who plan to drastically reduce spending. High risk of regret.
⚙ Strategy C: Dynamic Withdrawal Rate (Advanced)
How it works: Withdraw 4% of current portfolio value annually (inflation-adjusted percentage). If portfolio grows → withdrawals grow. If portfolio falls → you cut back.
Reality check:
• Good years (15% return): Withdraw 4% = lifestyle upgrade
• Bad years (0% return): Withdraw 4% = lifestyle cut
• Requires emotional discipline and flexibility
Who it's for: Sophisticated investors comfortable with variable income who can adapt spending. Highest long-term success rate but hardest to execute.
Reality check:
• Good years (15% return): Withdraw 4% = lifestyle upgrade
• Bad years (0% return): Withdraw 4% = lifestyle cut
• Requires emotional discipline and flexibility
Who it's for: Sophisticated investors comfortable with variable income who can adapt spending. Highest long-term success rate but hardest to execute.
Test: 4% inflation scenario
Test: 8% inflation scenario
Test: 3% returns (crash)
🔥 How to Beat Inflation: The 5 Pillars of Inflation-Proof Wealth
🎯
Pillar 1: Equity-Heavy Allocation
Why it works: Equities are ownership in businesses that can raise prices with inflation. Over 20+ years, Indian equities have delivered 12-15% returns vs 6% inflation.
The Magic Formula:
• Age 50-60: 70% equity, 30% debt
• Age 60-70: 60% equity, 40% debt
• Age 70+: 50% equity, 50% debt
Real example: ₹1Cr with 70% equity earning 12% + 30% debt earning 7% = 10.5% blended return
At 6% inflation → 4.2% real return (enough to sustain inflation-adjusted withdrawals)
The Magic Formula:
• Age 50-60: 70% equity, 30% debt
• Age 60-70: 60% equity, 40% debt
• Age 70+: 50% equity, 50% debt
Real example: ₹1Cr with 70% equity earning 12% + 30% debt earning 7% = 10.5% blended return
At 6% inflation → 4.2% real return (enough to sustain inflation-adjusted withdrawals)
Action Step: If your debt allocation > 40% and you're under 65, you're losing to inflation. Shift to equity-oriented balanced funds or index funds.
📈
Pillar 2: Built-in Inflation Escalation
Why it works: Your brain cannot intuitively grasp exponential inflation. Automating annual increases ensures you don't fall behind.
Implementation:
• Year 1: ₹50,000/month
• Year 2: ₹50,000 × 1.06 = ₹53,000
• Year 3: ₹53,000 × 1.06 = ₹56,180
• Year 10: ₹89,542
• Year 20: ₹1,60,357
Calculator setup: Always check ✓ "Increase withdrawals annually with inflation"
The harsh reality: If you DON'T do this, your Year 20 ₹50,000 is worth only ₹15,500 in today's terms. That's a 69% lifestyle cut most people can't handle.
Implementation:
• Year 1: ₹50,000/month
• Year 2: ₹50,000 × 1.06 = ₹53,000
• Year 3: ₹53,000 × 1.06 = ₹56,180
• Year 10: ₹89,542
• Year 20: ₹1,60,357
Calculator setup: Always check ✓ "Increase withdrawals annually with inflation"
The harsh reality: If you DON'T do this, your Year 20 ₹50,000 is worth only ₹15,500 in today's terms. That's a 69% lifestyle cut most people can't handle.
Action Step: Set up annual SWP review every April. Increase withdrawal by previous year's actual CPI inflation (not assumed 6%).
💰
Pillar 3: Tax-Efficient Withdrawals
Why it works: Every rupee saved in tax is a rupee that compounds to fight inflation. Tax drag can reduce real returns by 1-2% annually.
The Strategy:
• Use equity mutual funds/ETFs for LTCG 12.5% rate
• Utilize ₹1.25L annual LTCG exemption per FY
• Avoid debt funds (30% slab tax)
• Consider tax-harvesting yearly
Real impact:
Scenario A (Poor tax planning):
Debt fund, 7% return, 30% tax → 4.9% post-tax → -1.1% real return (after 6% inflation) = Wealth destruction
Scenario B (Good tax planning):
Equity fund, 12% return, 12.5% effective tax → 10.5% post-tax → +4.2% real return = Wealth preservation
The Strategy:
• Use equity mutual funds/ETFs for LTCG 12.5% rate
• Utilize ₹1.25L annual LTCG exemption per FY
• Avoid debt funds (30% slab tax)
• Consider tax-harvesting yearly
Real impact:
Scenario A (Poor tax planning):
Debt fund, 7% return, 30% tax → 4.9% post-tax → -1.1% real return (after 6% inflation) = Wealth destruction
Scenario B (Good tax planning):
Equity fund, 12% return, 12.5% effective tax → 10.5% post-tax → +4.2% real return = Wealth preservation
Action Step: Calculate your effective tax rate on withdrawals. If > 15%, restructure to equity-oriented products. Use this calculator's tax comparison feature.
🛡️
Pillar 4: Inflation Shock Absorber
Why it works: Inflation isn't steady 6%. It spikes (2022: 7.8%, 2010: 12%). You need buffer for bad years without selling equity in crashes.
The 3-Bucket System:
Bucket 1 - Cash (1 year expenses):
Keep ₹6L in savings account. Refill annually. No market risk.
Bucket 2 - Short-term debt (2 years expenses):
₹12L in liquid/ultra-short funds. Refill every 6 months.
Bucket 3 - Growth (remaining corpus):
Everything else in equity funds for long-term inflation beating.
Example with ₹1Cr:
• Bucket 1: ₹6L (cash)
• Bucket 2: ₹12L (debt)
• Bucket 3: ₹82L (equity)
This gives you 3 years to ride out market crashes + inflation spikes without panic selling.
The 3-Bucket System:
Bucket 1 - Cash (1 year expenses):
Keep ₹6L in savings account. Refill annually. No market risk.
Bucket 2 - Short-term debt (2 years expenses):
₹12L in liquid/ultra-short funds. Refill every 6 months.
Bucket 3 - Growth (remaining corpus):
Everything else in equity funds for long-term inflation beating.
Example with ₹1Cr:
• Bucket 1: ₹6L (cash)
• Bucket 2: ₹12L (debt)
• Bucket 3: ₹82L (equity)
This gives you 3 years to ride out market crashes + inflation spikes without panic selling.
Action Step: If 2008/2020 crash + 8% inflation hit tomorrow, do you have 3 years of expenses in non-equity? If no, create buckets now.
📊
Pillar 5: Quarterly Inflation Checkups
Why it works: Inflation changes. Your 6% assumption might be 8% reality. Early detection prevents disaster.
The Quarterly Review Process:
Every 3 months, check these 4 metrics:
1. Real Return: Actual portfolio return - actual inflation
Target: > 4% | Warning: < 2% | Danger: Negative
2. Inflation Gap: (Nominal corpus - Real corpus) ÷ Nominal corpus
Target: < 30% | Warning: 30-40% | Danger: > 40%
3. Withdrawal Rate: Annual withdrawal ÷ Current corpus
Safe: < 4% | Risky: 4-6% | Unsustainable: > 6%
4. Sustainability Buffer: Corpus ÷ Current annual withdrawal
Safe: > 15 years | Warning: 10-15 years | Danger: < 10 years
The Quarterly Review Process:
Every 3 months, check these 4 metrics:
1. Real Return: Actual portfolio return - actual inflation
Target: > 4% | Warning: < 2% | Danger: Negative
2. Inflation Gap: (Nominal corpus - Real corpus) ÷ Nominal corpus
Target: < 30% | Warning: 30-40% | Danger: > 40%
3. Withdrawal Rate: Annual withdrawal ÷ Current corpus
Safe: < 4% | Risky: 4-6% | Unsustainable: > 6%
4. Sustainability Buffer: Corpus ÷ Current annual withdrawal
Safe: > 15 years | Warning: 10-15 years | Danger: < 10 years
Action Step: Use this calculator quarterly with updated values. If 2+ metrics in danger zone, immediately: (a) reduce withdrawal 10%, or (b) shift 10% corpus to equity, or (c) delay retirement 2 years.
🎓 Advanced Inflation-Beating Tactics for Experts
1. Geographic Inflation Arbitrage
Concept: Healthcare/housing inflation in metros (8-10%) > small towns (4-6%). Relocate to lower-inflation region, maintain same lifestyle with 30% less withdrawal.
Real example: ₹80,000/month in Bangalore = ₹55,000/month in Coimbatore (same quality of life). Saves ₹3L/year = extends corpus by 5+ years.
Real example: ₹80,000/month in Bangalore = ₹55,000/month in Coimbatore (same quality of life). Saves ₹3L/year = extends corpus by 5+ years.
2. Inflation-Indexed Instruments
Concept: Some bonds/schemes have returns linked to inflation. Consider Inflation-Indexed Bonds (IIBs) for 10-15% of debt allocation.
How they work: If inflation = 7%, your principal + interest both increase by 7%. Automatic inflation protection built-in. Currently rare in India but watch for new issues.
How they work: If inflation = 7%, your principal + interest both increase by 7%. Automatic inflation protection built-in. Currently rare in India but watch for new issues.
3. International Diversification
Concept: If rupee loses 3% annually vs dollar + Indian inflation is 6% = 9% erosion. Hold 15-20% portfolio in international equity funds for currency hedge.
Real benefit: When rupee weakens (₹75 → ₹83), your dollar assets automatically appreciate 10.6% in rupee terms, offsetting inflation.
Real benefit: When rupee weakens (₹75 → ₹83), your dollar assets automatically appreciate 10.6% in rupee terms, offsetting inflation.
4. Dynamic Asset Allocation Rules
Concept: When inflation < 5%, hold 60% equity. When inflation > 7%, increase to 75% equity (equities protect better in high inflation).
Rebalance trigger: Every 6 months, if actual CPI is 2%+ different from your assumption, rebalance equity allocation accordingly.
Rebalance trigger: Every 6 months, if actual CPI is 2%+ different from your assumption, rebalance equity allocation accordingly.
5. Dividend Growth Investing
Concept: Blue-chip dividend stocks that increase dividends 10-12% annually. Your "withdrawal" grows automatically with company profits (which rise with inflation).
Example: Invest in dividend aristocrat funds. As companies raise dividends with inflation, your income stream naturally inflation-adjusts without selling units.
Example: Invest in dividend aristocrat funds. As companies raise dividends with inflation, your income stream naturally inflation-adjusts without selling units.
6. Real Estate Income Strategy
Concept: If 20% of corpus in rental property, rent rises with inflation (typically 5-8% annually). Provides natural inflation hedge + withdrawal supplementation.
Math: ₹40L property giving ₹20,000/month rent. Rent grows 6%/year naturally. Reduces pressure on equity corpus by ₹2.4L/year.
Math: ₹40L property giving ₹20,000/month rent. Rent grows 6%/year naturally. Reduces pressure on equity corpus by ₹2.4L/year.
How to Read the Charts: Visualizing Inflation's Impact
Numbers tell one story, charts tell the whole truth. Use the toggles above each chart to see different perspectives of your plan. Most people only look at nominal values and wonder why they're struggling—charts reveal the hidden inflation damage.
Chart 1: Withdrawal Growth Over Time
Blue line (rising) = Your actual bank deposits each year
Orange dashed line (flat) = What that money can buy in Year 1 terms
Gray horizontal line = Your Year 1 lifestyle baseline
💡 Key Insight:
If blue rises but orange stays flat → you're maintaining lifestyle ✓
If orange falls below gray → you're cutting lifestyle ✗
The gap between blue and orange = inflation's theft
If orange falls below gray → you're cutting lifestyle ✗
The gap between blue and orange = inflation's theft
Chart 2: Purchasing Power Decay
Red declining curve = Value of ₹1 over time (starts at 1.00, ends at 0.31)
Blue bars = Nominal withdrawal amount
Orange bars = Real purchasing power of that withdrawal
Red shaded area = Purchasing power destroyed by inflation
⚠️ Key Insight:
This is inflation's brutal compounding effect. Watch the red curve drop—at 6%, your money loses value exponentially. By Year 20, your ₹1L is worth only ₹31K of Year 1 purchasing power. Plan must overcome this.
Chart 3: Corpus: Nominal vs Real
Blue area/line = Your portfolio value in rupees (what broker shows)
Orange area/line = What that portfolio can actually buy today
Red bars (Inflation Gap view) = Purchasing power lost—cannot be recovered
🎯 Key Insight:
Your ₹80L portfolio might look healthy (blue), but orange shows it's worth only ₹50L in today's terms. That ₹30L gap (red) = wealth inflation stole forever. Target: Keep gap < 35% of nominal value. If > 45%, plan is failing.
Chart 4: Inflation Impact Dashboard
Green bar = Real return % (positive = wealth growing)
Red bar = Purchasing power lost % (lower is better)
Orange bar = How much withdrawals must increase %
Purple bar = Total inflation erosion in rupees
📊 Key Insight:
One-glance health check:
• Green > 4% → ✓ Good
• Red < 50% → ✓ Acceptable
• Orange < 200% → ✓ Manageable
If 2+ metrics fail, plan needs immediate revision.
• Green > 4% → ✓ Good
• Red < 50% → ✓ Acceptable
• Orange < 200% → ✓ Manageable
If 2+ metrics fail, plan needs immediate revision.
Using the Chart Toggles: Three Essential Views
📱 Nominal View (Bank Statement)
Shows actual rupees in your account. Use this to verify: "Will my bank show these deposits?" Good for matching expectations with reality.
🛒 Real View (Grocery Store)
Shows purchasing power in today's terms. Use this to ask: "Can I actually buy groceries/medicine/rent with this?" This is REALITY—not nominal numbers.
⚖️ Comparison View (Truth Revealer)
Side-by-side nominal vs real. Shows the exact gap inflation creates. The wider the gap, the more inflation is destroying your wealth. Most painful but most honest view.
⚠️ Critical Habit: Always start with "Real View" when planning lifestyle. Then check "Nominal View" to see the rupee amounts. Most people do the opposite and get shocked when they realize ₹2L/month in Year 20 = ₹62K purchasing power. Don't be that person.
Withdrawal Sustainability: The Most Misunderstood Metric
🚨 STOP: Read This First or You'll Misunderstand Everything
❓ The Confusing Question Everyone Asks:
"I entered 20 years in Time Period. Results show Sustainability: 15+ years.
Does this mean my money lasts 20+15 = 35 years total? Or only 15 years total?"
Does this mean my money lasts 20+15 = 35 years total? Or only 15 years total?"
✅ THE ANSWER: It Lasts 20+15 = 35 Years Total
Here's what actually happens:
Years 1-20: You execute your withdrawal plan as designed.
• You withdraw money every month/quarter/year
• Your corpus grows with returns
• Your withdrawals increase with inflation (if toggle ON)
• After 20 years, you still have ₹60L left (Final Corpus)
• You withdraw money every month/quarter/year
• Your corpus grows with returns
• Your withdrawals increase with inflation (if toggle ON)
• After 20 years, you still have ₹60L left (Final Corpus)
Year 21 onwards (The "Sustainability" part):
• You still have ₹60L corpus remaining
• Calculator asks: "If returns become ZERO from Year 21, how long can this ₹60L last?"
• At Year 20's withdrawal rate (₹4L/year), ₹60L ÷ ₹4L = 15 more years
• So: Years 1-20 (planned) + 15 years (buffer) = 35 years total
• You still have ₹60L corpus remaining
• Calculator asks: "If returns become ZERO from Year 21, how long can this ₹60L last?"
• At Year 20's withdrawal rate (₹4L/year), ₹60L ÷ ₹4L = 15 more years
• So: Years 1-20 (planned) + 15 years (buffer) = 35 years total
🎯 Real-World Example to Make It Crystal Clear:
Your Input:
• Initial Investment: ₹1 Crore
• Monthly Withdrawal: ₹50,000
• Time Period: 20 years
• Return: 10% | Inflation: 6%
What Calculator Simulates (Years 1-20):
• Year 1: Withdraw ₹6L (₹50K × 12)
• Year 10: Withdraw ₹10.7L (inflation-adjusted)
• Year 20: Withdraw ₹19.2L (inflation-adjusted)
• After all 20 years of withdrawals: ₹60L corpus remains
What "Sustainability: 15+ years" Means:
• This ₹60L can support 15 MORE years of withdrawals
• Even if market crashes and returns become 0%
• At Year 20's lifestyle (₹19.2L/year adjusted)
• Total longevity: 20 + 15 = 35 YEARS
• Initial Investment: ₹1 Crore
• Monthly Withdrawal: ₹50,000
• Time Period: 20 years
• Return: 10% | Inflation: 6%
What Calculator Simulates (Years 1-20):
• Year 1: Withdraw ₹6L (₹50K × 12)
• Year 10: Withdraw ₹10.7L (inflation-adjusted)
• Year 20: Withdraw ₹19.2L (inflation-adjusted)
• After all 20 years of withdrawals: ₹60L corpus remains
What "Sustainability: 15+ years" Means:
• This ₹60L can support 15 MORE years of withdrawals
• Even if market crashes and returns become 0%
• At Year 20's lifestyle (₹19.2L/year adjusted)
• Total longevity: 20 + 15 = 35 YEARS
Translation in Plain English:
"Your plan works for 20 years as designed. Even after that, you have enough buffer to survive 15 more years if everything goes wrong. Total safety: 35 years from today."
"Your plan works for 20 years as designed. Even after that, you have enough buffer to survive 15 more years if everything goes wrong. Total safety: 35 years from today."
📅 Visual Timeline: Where Does Each Year Fit?
📍 YEARS 1-20: Your Active Withdrawal Plan Period
This is the "Time Period" you entered in the calculator.
• You're actively managing withdrawals
• Corpus is growing with returns (10%)
• Withdrawals increasing with inflation (6%)
• You're living your planned retirement lifestyle
Status: Everything is going according to plan ✓
• You're actively managing withdrawals
• Corpus is growing with returns (10%)
• Withdrawals increasing with inflation (6%)
• You're living your planned retirement lifestyle
Status: Everything is going according to plan ✓
⏰ END OF YEAR 20: The Checkpoint
You've withdrawn all planned amounts for 20 years.
Calculator now asks: "What's left in the tank?"
Remaining Corpus: ₹60,00,000 (Final Corpus shown in results)
Calculator now asks: "What's left in the tank?"
Remaining Corpus: ₹60,00,000 (Final Corpus shown in results)
📍 YEARS 21-35: Your Safety Buffer ("Sustainability")
This is the "Withdrawal Sustainability" metric (15+ years).
• This is EXTRA time beyond your 20-year plan
• Assumes ZERO returns from Year 21 onwards (worst case)
• Your ₹60L corpus can still support you for 15 more years
• At Year 20's withdrawal rate (₹4L/year inflation-adjusted)
Status: Emergency buffer if markets crash after Year 20 ✓
• This is EXTRA time beyond your 20-year plan
• Assumes ZERO returns from Year 21 onwards (worst case)
• Your ₹60L corpus can still support you for 15 more years
• At Year 20's withdrawal rate (₹4L/year inflation-adjusted)
Status: Emergency buffer if markets crash after Year 20 ✓
🎯 TOTAL COVERAGE: 35 YEARS (20 + 15)
Simple Math:
Planned Period (what you entered) + Safety Buffer (sustainability) = Total Protection
20 years + 15 years = 35 years of financial security
Real-world meaning: If you're 60 today, this plan protects you until age 95, even if markets collapse after age 80.
Planned Period (what you entered) + Safety Buffer (sustainability) = Total Protection
20 years + 15 years = 35 years of financial security
Real-world meaning: If you're 60 today, this plan protects you until age 95, even if markets collapse after age 80.
❌ Common Mistakes People Make (Don't Be This Person)
❌ Mistake #1: Adding the Numbers Wrong
Wrong thinking: "Calculator shows sustainability 15 years, so my money only lasts 15 years total."
Reality: Money lasts 20 years (your plan) + 15 years (buffer) = 35 years total. You're ADDING, not replacing.
Reality: Money lasts 20 years (your plan) + 15 years (buffer) = 35 years total. You're ADDING, not replacing.
❌ Mistake #2: Ignoring the "Final Corpus" Number
Wrong thinking: "Results show ₹60L final corpus. I lost ₹40L from my ₹1Cr!"
Reality: You WITHDREW ₹1.2Cr over 20 years AND still have ₹60L left. You didn't lose anything—you spent it on living!
Reality: You WITHDREW ₹1.2Cr over 20 years AND still have ₹60L left. You didn't lose anything—you spent it on living!
❌ Mistake #3: Not Adjusting for Inflation
Wrong thinking: "Sustainability 15 years means I can keep withdrawing ₹50K/month for 15 more years."
Reality: By Year 20, you're withdrawing ₹1.6L/month (inflation-adjusted). Those 15 years are at ₹1.6L/month rate, not ₹50K/month!
Reality: By Year 20, you're withdrawing ₹1.6L/month (inflation-adjusted). Those 15 years are at ₹1.6L/month rate, not ₹50K/month!
✅ Quick Self-Test: Do You Really Understand?
Answer these questions honestly. If you get ANY wrong, re-read the sections above:
Q1: I enter "25 years" in Time Period. Results show "Sustainability: 12 years". What's my total coverage?
✓ Correct Answer: 25 + 12 = 37 years total protection
✗ Wrong Answer: "Only 12 years" or "Only 25 years"
✓ Correct Answer: 25 + 12 = 37 years total protection
✗ Wrong Answer: "Only 12 years" or "Only 25 years"
Q2: Calculator shows "Final Corpus: ₹80L" after 20 years with ₹1Cr start. Where did ₹20L go?
✓ Correct Answer: Nowhere! You withdrew MORE than ₹20L (maybe ₹1.5Cr total over 20 years), but corpus GREW to compensate, leaving ₹80L remaining.
✗ Wrong Answer: "I lost ₹20L to fees/market"
✓ Correct Answer: Nowhere! You withdrew MORE than ₹20L (maybe ₹1.5Cr total over 20 years), but corpus GREW to compensate, leaving ₹80L remaining.
✗ Wrong Answer: "I lost ₹20L to fees/market"
Q3: Results show "Sustainability: 5 years". Is this good or bad for a 60-year-old planning 20-year retirement?
✓ Correct Answer: VERY BAD. Total coverage is only 20+5 = 25 years (until age 85). Average Indian lives to 70+, many to 80-90. You're at high risk. Need 10+ year buffer minimum.
✗ Wrong Answer: "5 years is fine" or "It's good, money lasts"
✓ Correct Answer: VERY BAD. Total coverage is only 20+5 = 25 years (until age 85). Average Indian lives to 70+, many to 80-90. You're at high risk. Need 10+ year buffer minimum.
✗ Wrong Answer: "5 years is fine" or "It's good, money lasts"
Q4: Withdrawal starts at ₹50K/month. After 20 years with inflation, it's ₹1.6L/month. Sustainability shows 10 years. How much do I withdraw in those 10 buffer years?
✓ Correct Answer: ₹1.6L/month (continues at Year 20's inflation-adjusted rate). Total = ₹1.92Cr over those 10 years.
✗ Wrong Answer: "₹50K/month" or "₹1L/month average"
✓ Correct Answer: ₹1.6L/month (continues at Year 20's inflation-adjusted rate). Total = ₹1.92Cr over those 10 years.
✗ Wrong Answer: "₹50K/month" or "₹1L/month average"
🎯 Scoring:
• 4/4 correct: You understand! Proceed with planning. ✓
• 2-3 correct: Re-read the sustainability section carefully.
• 0-1 correct: STOP. Don't make investment decisions until you understand this completely. Misunderstanding sustainability can cost you lakhs.
• 4/4 correct: You understand! Proceed with planning. ✓
• 2-3 correct: Re-read the sustainability section carefully.
• 0-1 correct: STOP. Don't make investment decisions until you understand this completely. Misunderstanding sustainability can cost you lakhs.
How It's Calculated
Formula: Final Corpus ÷ Current Annual Withdrawal
Example:
Final Corpus: ₹60,00,000
Monthly Withdrawal (Year 1): ₹50,000
Annual Withdrawal: ₹50,000 × 12 = ₹6,00,000
Sustainability: 60,00,000 ÷ 6,00,000 = 10 years buffer
This tells you: "If returns go to ZERO tomorrow, I can still live for 10 years."
Example:
Final Corpus: ₹60,00,000
Monthly Withdrawal (Year 1): ₹50,000
Annual Withdrawal: ₹50,000 × 12 = ₹6,00,000
Sustainability: 60,00,000 ÷ 6,00,000 = 10 years buffer
This tells you: "If returns go to ZERO tomorrow, I can still live for 10 years."
What It Assumes (The Hidden Gotchas)
1. Zero future returns – Ultra-conservative worst-case
2. Fixed withdrawals – Doesn't account for inflation increase
3. No market crashes – Assumes you can liquidate anytime
4. No taxes – Just principal, ignores capital gains tax
Reality: This is a stress-test buffer, not a prediction. If sustainability < 10 years, you are one market crash away from crisis.
2. Fixed withdrawals – Doesn't account for inflation increase
3. No market crashes – Assumes you can liquidate anytime
4. No taxes – Just principal, ignores capital gains tax
Reality: This is a stress-test buffer, not a prediction. If sustainability < 10 years, you are one market crash away from crisis.
How to Interpret Correctly
🔴 Red Zone (<5 years): EMERGENCY
Action: Cut withdrawals 20% immediately or add ₹20L+ to corpus
Action: Cut withdrawals 20% immediately or add ₹20L+ to corpus
🟡 Yellow Zone (5-10 years): WARNING
Action: Reduce withdrawals 10% or shift 15% to equity
Action: Reduce withdrawals 10% or shift 15% to equity
🟢 Green Zone (10-20 years): SAFE
Your plan has good buffer against shocks
Your plan has good buffer against shocks
🔵 Blue Zone (20+ years): CONSERVATIVE
Consider: You could withdraw more or retire earlier
Consider: You could withdraw more or retire earlier
⚠️ The Inflation Adjustment Reality Check
Critical Point: If you're increasing withdrawals with inflation, your Year 20 lifestyle is MUCH more expensive than Year 1.
Example:
Year 1: ₹50,000/month (₹6L annual)
Year 20: ₹1,60,000/month (₹19.2L annual) — at 6% inflation
Sustainability using Year 1 amount: 60L ÷ 6L = 10 years ✓
Actual sustainability at Year 20 lifestyle: 60L ÷ 19.2L = 3.1 years ⚠️
Example:
Year 1: ₹50,000/month (₹6L annual)
Year 20: ₹1,60,000/month (₹19.2L annual) — at 6% inflation
Sustainability using Year 1 amount: 60L ÷ 6L = 10 years ✓
Actual sustainability at Year 20 lifestyle: 60L ÷ 19.2L = 3.1 years ⚠️
The Harsh Truth: When inflation-adjusting withdrawals, mentally divide sustainability by 3 for 20-year plans, by 2 for 10-year plans. If result < 5 years, plan is at risk.
🚨 Final Reality Check: Stress Test Your Plan NOW
Step 1: Run calculator with your current assumptions (6% inflation, 10% return).
Step 2: Change to 8% inflation, 7% return (bad decade scenario). Does plan survive 20 years?
Step 3: Check if real return > 3%. If no, you're in danger zone.
Step 4: Look at Year 20 withdrawal amount. Can you actually imagine spending that much monthly? If not, your plan is fantasy.
The Brutal Statistics:
• 60% of Indian retirees run out of money before life ends
• 80% of retirement plans ignore inflation correctly
• Average retirement lasts 25 years, but people plan for 15
• Inflation alone destroys 69% of purchasing power in 20 years at 6%
Step 2: Change to 8% inflation, 7% return (bad decade scenario). Does plan survive 20 years?
Step 3: Check if real return > 3%. If no, you're in danger zone.
Step 4: Look at Year 20 withdrawal amount. Can you actually imagine spending that much monthly? If not, your plan is fantasy.
The Brutal Statistics:
• 60% of Indian retirees run out of money before life ends
• 80% of retirement plans ignore inflation correctly
• Average retirement lasts 25 years, but people plan for 15
• Inflation alone destroys 69% of purchasing power in 20 years at 6%
Don't become a statistic. Use this calculator quarterly. Adjust when metrics go red. Always inflation-adjust withdrawals. Target 5%+ real returns. Keep 70%+ in equity under age 65. These aren't suggestions—they're requirements for avoiding poverty in old age.
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