How to Earn ₹1 Lakh per Month from a ₹1 Crore Retirement Corpus — The Smart Way

You’ve worked for decades and built a retirement corpus of ₹1 crore — now the question is, how do you make it last while generating a steady income? Many assume ₹1 crore is more than enough, but inflation, lifestyle costs, and longevity can quickly erode purchasing power. Let’s explore practical, sustainable ways to draw a monthly income — without exhausting your nest egg too soon.

Table of Contents

• Step 1: Understand the “4% Rule”

• Step 2: Align Returns with Inflation

• Step 3: Build a Hybrid Portfolio

• Step 4: Use Systematic Withdrawal Plans (SWP)

• Step 5: Plan for Longevity

• Step 6: Avoid Common Mistakes

• Conclusion

Step 1: Understand the “4% Rule”

Globally, retirees follow the 4% rule — withdrawing 4% of their corpus each year (inflation-adjusted) to make it last 25–30 years.

• Example: ₹1 crore x 4% = ₹4 lakh annually or ₹33,000/month.
  This is conservative but ensures long-term safety even if markets fluctuate.

Step 2: Align Returns with Inflation

The magic lies in balancing returns and inflation.

• At 6% return & 4% inflation, ₹1 crore can sustain ₹50,000/month for nearly 20 years.

• At 8% returns, that same ₹50,000 can last 25+ years.

• At 10%, ₹50,000 monthly could stretch for over 40 years — but ₹1 lakh/month depletes it in ~11 years.

Key takeaway: Higher withdrawals rapidly reduce corpus life.

Step 3: Build a Hybrid Portfolio

A diversified retirement plan might look like this:

Rebalancing every 2–3 years maintains safety and returns.

Step 4: Use Systematic Withdrawal Plans (SWP)

Instead of redeeming large chunks, use SWPs from balanced or hybrid mutual funds.

• Offers predictable monthly cash flow.

• Gains are taxed more efficiently than traditional FDs.

• Allows partial equity exposure for long-term growth.

Step 5: Plan for Longevity

Thanks to better healthcare, retirees today easily live into their 80s and 90s. Always plan for at least 25–30 years post-retirement. Reassess expenses, health costs, and lifestyle every 3 years.

Step 6: Avoid Common Mistakes

❌ Overspending in early retirement.
❌ Investing too conservatively (inflation risk).
❌ Ignoring tax efficiency.
❌ Lack of periodic review.

Conclusion

With prudent withdrawals, balanced investing, and inflation-aware planning, ₹1 crore can indeed generate a comfortable monthly income — but ₹1 lakh per month sustainably requires higher returns or supplemental income sources.

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Disclaimer: This article is intended for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any financial instruments. The views expressed are those of the author based on publicly available information and current market trends. Investors are advised to consult with their financial advisor before making any investment decisions. Finogent Solutions LLP and the author shall not be held responsible for any direct or indirect loss arising from reliance on this content. Past performance is not indicative of future results. All investments carry risk, including possible loss of capital.