Annual Retirement Income Calculator
Calculate how much annual income you'll generate from your retirement corpus. Understand sustainability of retirement lifestyle.
Annual Retirement Income Calculator
Result
How it works
Formula Used
Annual Income = Corpus × Return %, adjusted for inflation Income increases yearly at inflation rate for purchasing power
Smart Tips
- Conservative: use 4-5% withdrawal rate
- Include only post-tax returns for realistic planning
- Plan for 25-30 years (life expectancy cushion)
Best Used For
Verify retirement corpus adequacy, plan withdrawal strategy
FAQs
What's the 4% withdrawal rule?
Withdraw 4% of corpus yearly, increasing by inflation yearly. Research shows this sustains 30-year retirements with 90% success. ₹1Cr corpus = ₹4L year 1, ₹4.2L year 2 (with 5% inflation). Conservative and proven.
Should I withdraw 4% or use only interest returns?
4% rule is safer—it means corpus depletes over time but you withdraw more yearly to match inflation. Using only interest (₹6-7% on ₹1Cr = ₹6-7L) gives more security but less purchasing power. Choose based on risk comfort.
What if my corpus generates lower returns in retirement?
If debt allocations give 5% instead of 6%, withdraw less. Calculator shows impact—adjust. Or work part-time in early retirement for extra income. Have flexibility in expenses (discretionary vs essential).
How do I handle inflation over 30 years of retirement?
4% rule accounts for it—you withdraw more each year. But longer retirements face higher inflation risk. Keep 10-20% equity even in retirement for growth. Review withdrawals annually; adjust if corpus grows/shrinks.
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