Can Rs 1.5 crore retirement savings give you Rs 1 lakh monthly income for 20 years? Here’s the math

For many, withdrawing a big monthly sum from a retirement corpus is a dream. However, the withdrawal rate needs to be set so that your money lasts throughout your retirement. If you retire now with a retirement fund of Rs 1.5 crore , can you withdraw Rs 1 lakh every month for the next 20 years, and how much of your fund will still be there? Will it be possible to withdraw a higher amount or should you play it safe and target a lower amount, like Rs 75,000?


Rs 1 lakh/month withdrawal from Rs 1.5 crore corpus: How long will the retirement corpus last?

Since the money is meant for retirement, we will invest it in a mutual fund, expecting an annual return of 6%. Let’s see if we can withdraw Rs 1 lakh per month for at least 20 years.

Particulars	Details
Retirement corpus	Rs 1.5 crore
Monthly withdrawal	Rs 1 lakh/month
Return	6%
Years of withdrawal	22
Amount left after 22 years	Rs 10.71 lakh

Calculator used: SBI Securities

Calculations show that at a 6% return, you can withdraw Rs 1 lakh/month for 22 years.

Also Read: Can Rs 5 lakh lump sum and Rs 10,000 step up SIP create Rs 2 crore corpus in 20 years?

However, if you get a slightly higher return from the Rs 1.5 crore corpus, i.e., 7% or 8%, the same corpus can give you Rs 1.10 lakh/month and Rs 1.20 lakh/month, respectively, for 22 years.

Particulars	Details	Details
Retirement corpus	Rs 1.5 crore	Rs 1.5 crore
Monthly withdrawal	Rs 1.10 lakh	Rs 1.20 lakh
Return	7%	8%
Years of withdrawal	22	22
Amount left after withdrawal	Rs 5.44 lakh	Rs 90K

Calculator used: SBI Securities

Will you get 6% annualised return for 22 years in debt funds?

Debt funds are considered safer than hybrid and equity funds but even returns in debt funds are not fixed. There may be times when you may not even get a 6% annualised return. In such a situation, the withdrawal rate should be such that your corpus can sustain even when the returns are below 6%. But what should be the withdrawal rate to ensure your Rs 1.5 crore corpus lasts for a long time?

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What should be a sustainable withdrawal rate from a Rs 1.5 crore retirement corpus?

Rohan Goyal, investment research analyst, MIRA Money, says the percentage of annual withdrawal without depleting the portfolio over 25 years should be 4-5% of the corpus for Indian retirees, accounting for a 5-6% inflation.

“Withdrawing more than this, especially in the early years of retirement, significantly increases the risk of outliving your money,” says Goyal.

Swapnil Aggarwal, director, VSRK Capital, however, advises for a lower withdrawal rate of 3-5%.

“The focus should remain on balancing growth, regular income, inflation protection, and capital preservation rather than chasing very high returns,” says Aggarwal.

Also Read: SIP vs RD: With Rs 10,000 monthly investment, where can you make more money in 10, 15 and 20 years?

Vinayak Magotra, product head & founding team, Centricity WealthTech, too advocates for a withdrawal rate anywhere between 3-5%.

Magotra says it will help ensure your corpus does not deplete prematurely, especially during sub-par market performance.


Rs 1.5 crore corpus: Monthly income you can draw at 3%–8% withdrawal rate for 20 years (at 6% annualised growth)

Yearly withdrawal rate	Monthly withdrawal	Money left after 20 years
3%	Rs 38000	3.21 cr
4%	Rs 50000	2.65 cr
5%	Rs 63000	2.05 cr
6%	Rs 75000	Rs 1.5 cr
7%	Rs 87000	Rs 94.5 lakh
8%	Rs 100000	Rs 34.4 lakh

Best mutual fund categories to invest retirement corpus

Aggarwal says retirees can opt for a mix of debt, hybrid and equity funds that can ensure a regular cashflow and growth of the corpus.


“It should be a balanced mix of conservative hybrid funds, short-duration debt funds, and select equity exposure to maintain regular income while allowing the corpus to continue growing,” says Aggarwal.

Magotra, however, suggests retirees should stay away from equity and recommends investing in hybrid funds, balanced advantage funds or follow short-duration debt strategies to reduce volatility while continuing to generate regular income during retirement.

Goyal suggests keeping around 3 years of expenses in a liquid fund and the rest in hybrid funds.

While one may require a higher withdrawal amount every year considering the rising inflation, as experts suggest, focusing on stability is more important than chasing aggressive returns during the retirement phase. So, while you plan a monthly income withdrawal from your Rs 1.50 crore retirement corpus, prepare a strategy where your money doesn’t run out after retirement.