Retirement Income from ₹1.5 Crore: Withdrawal Math

Financial planners who design retirement portfolios say the withdrawal rate matters more than the initial yield. They recommend a 4.5% to 6.5% annual draw on the starting corpus. A retiree drawing 6.5% on ₹1.5 crore takes about ₹98,000 a month. Planners say that rate works only if the portfolio grows faster over time.

The bucket strategy addresses that problem. Short-term expenses sit in liquid funds. Medium-term needs draw on debt and annuity income. Long-term money stays in equity, where growth can outpace inflation. Planners say this structure reduces the pressure to sell assets during market downturns.

Another adjustment: increasing the annual withdrawal by roughly 5% to keep pace with living costs. Planners say most retirees underestimate how much prices rise over two decades. A 5% annual hike on a ₹1 lakh monthly withdrawal becomes ₹1.28 lakh after five years. That requires a portfolio that earns more than 5% after fees.

Common mistakes include putting the entire corpus in a single product and chasing high returns without understanding risk. Diversification and emergency liquidity are the two pillars of a sustainable plan.

The number that matters, planners say, is not the headline monthly income but the withdrawal rate that keeps the corpus alive for 30 years. A 4.5% rate on ₹1.5 crore yields ₹67,500 a month, lower than the ₹70,000–₹1.2 lakh range touted in marketing material. The difference between hope and math.