Retire Comfortably in India: Understanding the 5% Withdrawal Rule
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Retire Comfortably: How India's 5% Withdrawal Rule Works for Your Corpus
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News18•21-02-2026, 06:00
Retire Comfortably: How India's 5% Withdrawal Rule Works for Your Corpus
•A Rs 20,000 monthly SIP for 25 years can build a Rs 3.8 crore retirement corpus at 12% annual return.
•The 5% withdrawal rule allows drawing Rs 19 lakh annually (Rs 1.58 lakh monthly) from a Rs 3.8 crore corpus, with the remaining amount staying invested.
•A 4-6% withdrawal rate is considered sustainable, allowing investors to remain in market-linked products while drawing income.
•The remaining corpus can still grow; an 8% annual return on Rs 3.8 crore yields Rs 30.4 lakh, offsetting inflation after withdrawals.
•Experts recommend a three-bucket approach: liquid funds for 2 years' expenses, hybrid funds, and equity funds for growth, to manage market volatility and tax efficiency.
