Retirement Corpus Withdrawal: How Long Will Rs 1.5 Crore Last?

With a Rs 1.5 crore retirement corpus earning 6%, withdrawing Rs 1 lakh monthly can last about 22 years, leaving little balance. Slightly higher returns allow marginally higher withdrawals but nearly exhaust the corpus. Experts caution that returns from the corpus aren’t guaranteed and suggest a safer 3–5% withdrawal rate to sustain funds longer. A balanced mix of debt and hybrid funds, with focus on stability over high returns, is key to avoiding premature depletion.

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For many, withdrawing a big monthly sum from a retirement corpus is a dream. However, the withdrawal rate needs to be set so that your money lasts throughout your retirement. If you retire now with a retirement fund of Rs 1.5 crore , can you withdraw Rs 1 lakh every month for the next 20 years, and how much of your fund will still be there? Will it be possible to withdraw a higher amount or should you play it safe and target a lower amount, like Rs 75,000?

Rs 1 lakh/month withdrawal from Rs 1.5 crore corpus: How long will the retirement corpus last?

Since the money is meant for retirement, we will invest it in a mutual fund, expecting an annual return of 6%. Let’s see if we can withdraw Rs 1 lakh per month for at least 20 years.

Calculator used: SBI Securities

Calculations show that at a 6% return, you can withdraw Rs 1 lakh/month for 22 years.

However, if you get a slightly higher return from the Rs 1.5 crore corpus, i.e., 7% or 8%, the same corpus can give you Rs 1.10 lakh/month and Rs 1.20 lakh/month, respectively, for 22 years.

Particulars

Details

Details

Retirement corpus

Rs 1.5 crore

Rs 1.5 crore

Monthly withdrawal

Rs 1.10 lakh

Rs 1.20 lakh

Return

7%

8%

Years of withdrawal

22

22

Amount left after withdrawal

Rs 5.44 lakh

Rs 90K

Calculator used: SBI Securities

Will you get 6% annualised return for 22 years in debt funds?

Debt funds are considered safer than hybrid and equity funds but even returns in debt funds are not fixed. There may be times when you may not even get a 6% annualised return. In such a situation, the withdrawal rate should be such that your corpus can sustain even when the returns are below 6%. But what should be the withdrawal rate to ensure your Rs 1.5 crore corpus lasts for a long time?

What should be a sustainable withdrawal rate from a Rs 1.5 crore retirement corpus?

Rohan Goyal, investment research analyst, MIRA Money, says the percentage of annual withdrawal without depleting the portfolio over 25 years should be 4-5% of the corpus for Indian retirees, accounting for a 5-6% inflation.

“Withdrawing more than this, especially in the early years of retirement, significantly increases the risk of outliving your money,” says Goyal.

Swapnil Aggarwal, director, VSRK Capital, however, advises for a lower withdrawal rate of 3-5%.

“The focus should remain on balancing growth, regular income, inflation protection, and capital preservation rather than chasing very high returns,” says Aggarwal.

Vinayak Magotra, product head & founding team, Centricity WealthTech, too advocates for a withdrawal rate anywhere between 3-5%.

Magotra says it will help ensure your corpus does not deplete prematurely, especially during sub-par market performance.

Rs 1.5 crore corpus: Monthly income you can draw at 3%–8% withdrawal rate for 20 years (at 6% annualised growth)

Yearly withdrawal rate

Monthly withdrawal

Money left after 20 years

3%

Rs 38000

3.21 cr

4%

Rs 50000

2.65 cr

5%

Rs 63000

2.05 cr

6%

Rs 75000

Rs 1.5 cr

7%

Rs 87000

Rs 94.5 lakh

8%

Rs 100000

Rs 34.4 lakh

Best mutual fund categories to invest retirement corpus

Aggarwal says retirees can opt for a mix of debt, hybrid and equity funds that can ensure a regular cashflow and growth of the corpus.

“It should be a balanced mix of conservative hybrid funds, short-duration debt funds, and select equity exposure to maintain regular income while allowing the corpus to continue growing,” says Aggarwal.

Magotra, however, suggests retirees should stay away from equity and recommends investing in hybrid funds, balanced advantage funds or follow short-duration debt strategies to reduce volatility while continuing to generate regular income during retirement.

Goyal suggests keeping around 3 years of expenses in a liquid fund and the rest in hybrid funds.

While one may require a higher withdrawal amount every year considering the rising inflation, as experts suggest, focusing on stability is more important than chasing aggressive returns during the retirement phase. So, while you plan a monthly income withdrawal from your Rs 1.50 crore retirement corpus, prepare a strategy where your money doesn’t run out after retirement.