Retired with a lump corpus and drawing monthly? Or supporting a parent? The SWP question is: how long does the money last? Slide the inputs, see the answer.
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The mirror image of a SIP. Where a SIP puts money in every month, an SWP takes money out. You park a lump corpus in a mutual fund, and instruct the AMC to redeem and pay you a fixed amount every month — say, ₹50,000 on the 1st.
SWPs are the standard way to convert retirement corpus into monthly income. They're more tax-efficient than FDs (long-term capital gains on equity-oriented funds vs ordinary income on FD interest), and they keep the un-withdrawn portion growing.
Month by month. At the start, your balance grows at the assumed monthly return rate; then the withdrawal is deducted. If the growth exceeds the withdrawal, the corpus could last forever. If withdrawal exceeds growth, it depletes — and the calculator counts how many months until ₹0.
The big variable is the return rate. Retirees usually invest in debt-heavy or hybrid funds (lower return, lower risk) — so the default here is 8%, not the 12% you'd use for a long-horizon SIP.
This calculator uses a fixed monthly withdrawal. In reality, your expenses go up with inflation — ₹50,000/month today buys less in 10 years. A real retirement plan stages withdrawals to grow ~5-6% a year, which means your corpus depletes faster than this calculator shows.
For a proper retirement plan that accounts for inflation, use the retirement calculator — or just talk to Archita.