Retirement is two problems, and they need different answers
Before retirement the problem is accumulation: getting enough into the corpus, with enough growth, over enough years. After retirement it becomes something else entirely — drawing a monthly income without exhausting the corpus while inflation keeps raising the bill.
Most people plan only the first half. We plan both, and the withdrawal structure is designed before you retire, not improvised in the first month afterwards.
- Corpus target calculated on post-retirement expenses, not a round number
- Inflation applied to the years after retirement, not just before
- Asset mix moved gradually as retirement approaches
- Systematic Withdrawal Plan structured for monthly cash flow
- Withdrawal rate reviewed so the corpus is not drawn down too fast
What actually happens, step by step
Estimate the real expense
Start from today's monthly household expense, not an arbitrary target. Then inflate it to your retirement year — the number usually surprises people.
Size the corpus
The corpus must fund that inflated expense for the whole of retirement. Our retirement calculator gives a first estimate you can test yourself.
Accumulate
A SIP in a category mix the horizon justifies, stepped up with income. Long horizons early on are what make the corpus achievable at all.
De-risk on approach
In the last few years before retirement, equity exposure is reduced in stages. A market fall in year one of retirement is far more damaging than one in year twenty of accumulation.
Structure the SWP
A Systematic Withdrawal Plan pays a fixed amount into your bank on a fixed date each month, while the balance stays invested.
Review the draw rate
Withdrawing too much too early is the main way retirement corpuses fail. The rate is reviewed against the balance and revised where needed.
Questions we get asked most
A standing instruction to the fund to redeem a fixed rupee amount from your folio every month and credit it to your bank. The rest of the money stays invested and continues to participate in the market.
They behave very differently. A SWP gives you a predictable amount you control. Income Distribution cum Capital Withdrawal payouts are declared at the AMC's discretion and are neither guaranteed nor fixed in amount.
It depends on corpus size, expected return, inflation and how long the money must last. There is no universal safe rate; we model it for your specific numbers and revisit it at review.
It is still worth structuring. Even at that stage, deciding the asset mix and the withdrawal rate deliberately makes a large difference to how long the corpus lasts.
The invested balance continues to be exposed to the market, so it can rise or fall. Whether it grows net of withdrawals depends on returns against your draw rate — which is exactly what the review monitors.
Ready to take the next step?
Speak to a Designated Partner directly. No fee for the conversation, and no obligation afterwards.