Quick answer: A ₹1 crore corpus earning 8% a year can pay about ₹35,000 a month (rising 6% a year with inflation) for roughly 33 years, or ₹50,000 a month for about 21 years. Push it to ₹70,000 and the money runs out in about 14 years. For a retirement that could last 30 years, ₹1 crore supports roughly ₹30,000–₹35,000 a month in today’s money.
₹1 crore sounds like a finish line. For a 60-year-old in a metro, it’s closer to a comfortable middle-class pension, and only if the withdrawals are disciplined.
How long will ₹1 crore last?
Withdrawals start at the amount shown and rise 6% every year for inflation:
Monthly SWP (year 1) | Yearly rate | At 6% return | At 8% return | At 10% return |
₹30,000 | 3.6% | ~29 years | ~41 years | Lasts 60+ years |
₹35,000 | 4.2% | ~25 years | ~33 years | Lasts 60+ years |
₹40,000 | 4.8% | ~21 years | ~27 years | ~43 years |
₹50,000 | 6.0% | ~17 years | ~21 years | ~27 years |
₹70,000 | 8.4% | ~12 years | ~14 years | ~16 years |
Illustrative. Assumes steady returns. Real portfolios swing, and a crash in the first few years shortens these timelines.
Two things stand out. First, the gap between 6% and 10% returns is huge, which is why a retiree’s portfolio can’t be all FDs. Second, the withdrawal rate matters even more. Going from ₹35,000 to ₹50,000 a month cuts more than a decade off at 8%.
What’s a safe withdrawal rate in India?
You’ll see “the 4% rule” quoted everywhere. It comes from US data, where inflation has historically been lower than in India.
For Indian retirees we use a simple guide:
- 5–4% a year, if you retire before 55 or want the corpus to outlive you.
- 4–5% a year, for a typical retirement at 60 with a balanced portfolio.
- Above 6%, only if you have other income (pension, rent) or a shorter horizon.
On ₹1 crore, 4% is ₹4 lakh a year, about ₹33,000 a month.
How much corpus do you need for ₹50,000 a month?
Turn the question around. To draw ₹50,000 a month, rising with 6% inflation, for 30 years at an 8% return, you need roughly ₹1.33 crore at retirement.
Planning for ₹70,000 or ₹1 lakh a month? Our retirement goal planner works it out for your numbers. And if you’re still building the corpus, Is Your SIP Targeting ₹1 Crore? It Might Not Be Enough explains why ₹1 crore is often too small a target.
The three-bucket plan for a ₹1 crore corpus
A single fund paying a fixed SWP is fragile. Here’s how we’d split ₹1 crore for someone drawing ₹40,000 a month:
Bucket | Amount | Where | Purpose |
|---|---|---|---|
1: Income | ₹15 lakh | Liquid / short-duration debt fund | Pays ~3 years of SWP |
2: Stability | ₹35 lakh | Conservative hybrid / equity savings | Refills Bucket 1 each year |
3: Growth | ₹50 lakh | Balanced advantage / flexi cap | Beats inflation over 10+ years |
In a year when markets fall, you don’t sell from Bucket 3. You keep drawing from Bucket 1 and wait. In good years, you move gains from Bucket 3 down the ladder. This protects you from the biggest retirement risk: being forced to sell equity at the bottom.
For fund categories that suit each bucket, see Best SWP Mutual Funds for Monthly Income.
What about tax on ₹40,000 a month?
SWP is tax-efficient because only the gain part of each withdrawal is taxed. In the first few years most of each instalment is your own capital coming back.
- From equity-oriented funds held 12+ months, long-term gains up to ₹1.25 lakh a year are tax-free and the rest is taxed at 12.5%.
- From debt funds bought after April 2023, gains are taxed at your slab rate.
Compare that with ₹1 crore in FDs at around 6–6.5%. The full interest is taxed every year, whether you spend it or not.
Mistakes that drain a ₹1 crore corpus early
- Setting the SWP from last year’s returns. One great year isn’t a plan.
- Forgetting medical costs. Keep health insurance separate and an emergency buffer outside the SWP buckets.
- Never raising the SWP, then making big lump-sum withdrawals. Unplanned ₹5–10 lakh withdrawals do more damage than steady increases.
- Helping children with the corpus. It’s generous, but it’s the most common reason retirement money runs out early. Decide the limit in advance.
Frequently Asked Questions
Is ₹1 crore enough to retire in India?
or a 30-year retirement, ₹1 crore supports roughly ₹30,000–₹35,000 a month in today’s money. Whether that’s enough depends on your city, housing, health costs and other income.
How much monthly income can I get from ₹1 crore?
At a sustainable 4–5% withdrawal rate, about ₹33,000–₹42,000 a month, rising with inflation.
Is SWP better than an annuity for ₹1 crore?
SWP is more flexible, more tax-efficient and keeps the capital for your nominees, but it’s market-linked. An annuity is guaranteed but fully taxable and usually doesn’t rise with inflation. Some retirees combine the two.
What if markets crash right after I retire?
That’s what Bucket 1 is for. Two to three years of withdrawals held in debt funds give equity time to recover.
Can I get ₹1 lakh a month from ₹1 crore?
That’s a 12% withdrawal rate, and the corpus would likely run out in roughly 9–10 years at an 8% return with inflation-linked withdrawals. For ₹1 lakh a month for 30 years, you’d need roughly ₹2.5–3 crore.
