Retirement Corpus: Smart Withdrawal Strategies for the 55-60 Transition

• The transition from accumulating wealth to withdrawing it for income is a critical phase, especially between ages 55 and 60.
• Avoid lump-sum withdrawals; instead, pause SIPs and establish a 6-12 month emergency fund in liquid assets.
• Utilize Systematic Withdrawal Plans (SWPs) for regular income, reducing market timing risk and spreading out capital gains tax.
• Gradually shift funds not immediately needed from high-risk equities to stable options like short-term debt funds, government securities, or fixed deposits.
• Prioritize capital preservation, predictable returns, and tax efficiency, with regular portfolio reviews to adjust allocations.

Why It Matters: Wise withdrawal strategies, including SWPs and gradual de-risking, are crucial for a secure retirement.