Home / Money / Personal Finance /  How should you plan monthly withdrawals after retirement?
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My husband and I will be retiring within a year. We work with private companies and will not get any regular pension. We have investments in mutual funds, some life insurance policies, and provident fund, worth 2.3 crore. We want to withdraw 80,000 per month to maintain our current lifestyle and also give 1 crore to our children. Will this be possible?

— Name withheld on request


It is always better to plan for your post-retirement monthly withdrawal as it ensures your independence and also reduces the possibility of outliving your savings. We will look into the inheritance part later ( 1 crore). Your primary goal should be to ensure stress-free retirement. Many retired people use the bucketing strategy for their retirement corpus to build a portfolio across banks, Senior Citizen Saving Scheme (SCSS), Pradhan Mantri Vaya Vandana Yojana (PMVVY), and mutual funds—debt, equity, and hybrid. You will have to factor in inflation even post-retirement. For example, you will need 1.27 lakh every month in 2030 instead of 80,000 considering 6% inflation. The idea behind investing across different asset classes is to withdraw from them at different stages, giving them sufficient time to grow and take the limited risk during that phase. You will need a higher retirement corpus if you plan to go for only debt investments, this is also not advisable. At the same time, you must limit the risk by investing only some part of your portfolio in equity. You can invest 1.83 crore for your post-retirement phase by investing or continuing with 29 lakh (FDs, SCSS & debt funds), 46 lakh (SCSS, PMVVY, debt & hybrid funds), 69 lakh (equity funds) and 39 lakh (balanced advantage funds). You can withdraw from these buckets for the first 3 years, 4th to 8th year, 9th to 20th year, and 21st to 25th year, respectively. The above strategy will take care of your 80,000 monthly expenses along with inflation for 25 years.

 The remaining 50 lakh can be invested in equity funds and can be passed on to your children or work as a strong post-retirement backup. Assuming 12% p.a. return, the inheritance can be close to 85 lakh.

Harshad Chetanwala is co-Founder at

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