Retirement Planning
Design a life where work becomes a choice, not a compulsion. Plan for inflation, longevity, and peace of mind — systematically and early.
Why Plan Your Retirement?
📈 Inflation is relentless
Expenses double roughly every 8–10 years at 7–9% inflation. Your future lifestyle needs an inflation‑proof corpus.
⏳ Longevity risk
Plan for 25–35 years post‑retirement. A sustainable withdrawal rate matters more than headline returns.
🛡️ Peace > Returns
A well‑built plan prioritizes stability, rebalancing, and emergency buffers over chasing the last percent.
Strategic Glide Path
Equity‑heavy allocation; disciplined SIPs; annual rebalancing to target mix.
Gradually lower equity; build 2–3 years of expenses in debt/liquid.
Maintain 3–5 years buffer in low‑volatility debt; set up SWP for cashflows.
Note: Exact mix depends on risk profile, income stability, and goal flexibility. Rebalance annually or after major market moves.
Retirement Calculator (Corpus & SIP)
Illustrative only. Uses inflation‑adjusted expense at retirement, annuity PV for corpus, and monthly SIP with pre‑retirement return.
✨ Retirement Lifestyle Ideas
SWP Illustration
| Starting Corpus (₹) | Annual Withdrawal (₹) | Post‑Ret Return | Longevity (yrs) | Is Corpus Likely Sustainable?* |
|---|---|---|---|---|
| 2,00,00,000 | 8,00,000 | 7% p.a. | 30 | Yes (≈4% rule) |
| 1,50,00,000 | 9,00,000 | 6% p.a. | 25 | Borderline — review annually |
| 1,20,00,000 | 9,00,000 | 5.5% p.a. | 25 | Stretch — reduce withdrawal |
*Indicative only. Markets are volatile; review SWP rates during drawdown years.
Tax & Key Risks
Tax Considerations
- Capital gains tax differs for equity, debt, and hybrid products; indexation rules matter.
- Tax‑efficient SWP from growth options may be preferable to dividends for many investors.
- Consider retirement‑specific products (e.g., NPS tiers) within overall asset allocation.
Risks to Manage
- Sequence of returns risk: Keep a 3–5 year cash/debt buffer to protect early withdrawals.
- Longevity risk: Plan for a longer life; use conservative SWP rates (≈3.5–4.5% p.a.).
- Inflation risk: Maintain partial equity exposure to grow the remaining corpus.
FAQs
What replacement ratio should I target?
Many households target 60–80% of pre‑retirement income, adjusted for lifestyle and debt. Using expenses is often more accurate.
How often should I rebalance?
Once a year or when allocations drift beyond ±5%. In retirement, rebalance more conservatively to protect the buffer.
Should I include home equity or pension?
Yes, account for predictable pensions/annuities and potential downsizing, but avoid over‑reliance. Keep cash flow flexibility.
Educational purpose only. Calculators and tables are illustrative, not advice. Past performance is not indicative of future results. Please consult a SEBI‑registered Investment Adviser for personalized planning.
Retirement Planning
Design a life where work becomes a choice, not a compulsion. Plan for inflation, longevity, and peace of mind — systematically and early.
Why Plan Your Retirement?
📈 Inflation is relentless
Expenses double roughly every 8–10 years at 7–9% inflation. Your future lifestyle needs an inflation‑proof corpus.
⏳ Longevity risk
Plan for 25–35 years post‑retirement. A sustainable withdrawal rate matters more than headline returns.
🛡️ Peace > Returns
A well‑built plan prioritizes stability, rebalancing, and emergency buffers over chasing the last percent.
Strategic Glide Path
Equity‑heavy allocation; disciplined SIPs; annual rebalancing to target mix.
Gradually lower equity; build 2–3 years of expenses in debt/liquid.
Maintain 3–5 years buffer in low‑volatility debt; set up SWP for cashflows.
Note: Exact mix depends on risk profile, income stability, and goal flexibility. Rebalance annually or after major market moves.
Retirement Calculator (Corpus & SIP)
Illustrative only. Uses inflation‑adjusted expense at retirement, annuity PV for corpus, and monthly SIP with pre‑retirement return.
✨ Retirement Lifestyle Ideas
SWP Illustration
| Starting Corpus (₹) | Annual Withdrawal (₹) | Post‑Ret Return | Longevity (yrs) | Is Corpus Likely Sustainable?* |
|---|---|---|---|---|
| 2,00,00,000 | 8,00,000 | 7% p.a. | 30 | Yes (≈4% rule) |
| 1,50,00,000 | 9,00,000 | 6% p.a. | 25 | Borderline — review annually |
| 1,20,00,000 | 9,00,000 | 5.5% p.a. | 25 | Stretch — reduce withdrawal |
*Indicative only. Markets are volatile; review SWP rates during drawdown years.
Tax & Key Risks
Tax Considerations
- Capital gains tax differs for equity, debt, and hybrid products; indexation rules matter.
- Tax‑efficient SWP from growth options may be preferable to dividends for many investors.
- Consider retirement‑specific products (e.g., NPS tiers) within overall asset allocation.
Risks to Manage
- Sequence of returns risk: Keep a 3–5 year cash/debt buffer to protect early withdrawals.
- Longevity risk: Plan for a longer life; use conservative SWP rates (≈3.5–4.5% p.a.).
- Inflation risk: Maintain partial equity exposure to grow the remaining corpus.
FAQs
What replacement ratio should I target?
Many households target 60–80% of pre‑retirement income, adjusted for lifestyle and debt. Using expenses is often more accurate.
How often should I rebalance?
Once a year or when allocations drift beyond ±5%. In retirement, rebalance more conservatively to protect the buffer.
Should I include home equity or pension?
Yes, account for predictable pensions/annuities and potential downsizing, but avoid over‑reliance. Keep cash flow flexibility.
Educational purpose only. Calculators and tables are illustrative, not advice. Past performance is not indicative of future results. Please consult a SEBI‑registered Investment Adviser for personalized planning.