SWP Calculator (Systematic Withdrawal Plan)
Find out exactly how many years your retirement corpus will last with a monthly withdrawal. Compare SWP with traditional FD-based pensions.
Investment Report
EQUIS Take (Asli Sach)
FD interest pe dependent rahoge toh inflation corpus kha jayegi. SWP (Equity/Hybrid fund) se
The Math Behind SWP Calculator (Systematic Withdrawal Plan)
Understanding the true mechanics of this instrument helps you make optimal decisions with your money.
1. SWP vs. FD for Retirement Income
An FD pays interest from a static corpus. An SWP lets the remaining corpus continue earning market-linked returns. Over 20+ years, an SWP from a balanced fund can provide 2-3x more total income than an equivalent FD.
2. The 4% Safe Withdrawal Rate
Academic research shows that withdrawing 4% of your initial corpus per year (inflation-adjusted) has never historically depleted a balanced portfolio over 30 years. This is the gold standard for retirement income planning.
3. Inflation Erosion Warning
If you withdraw a fixed ₹50,000/month for 20 years, the real purchasing power of that ₹50,000 will drop to approximately ₹22,000 due to inflation (at 4%). Increase your SWP by 5-6% annually to maintain your standard of living.
Frequently Asked Questions
How is SWP tax treated in mutual funds?expand_more
What is the 4% safe withdrawal rate?expand_more
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