Can you comfortably retire with Rs 1 crore today?

Summary: Let’s assume you’ve saved Rs 1 crore for retirement. In this real-life simulation, we explore how a 5 per cent withdrawal rate, a sensible 50:50 equity-debt portfolio and an 8 per cent return may or may not sustain your household expenses in the long run. In this story, we will find out: a) Is a 5 per cent withdrawal practical over three decades? b) If not, how soon will your Rs 1 crore run out? And, c) does a 4 per cent withdrawal rate really offer long-term peace of mind? Mr Srinivasan, 60, has just retired from his government job. After decades of diligent saving and cautious investing, he has built a retirement corpus of Rs 1 crore. A tidy sum, he thinks. Enough to last a lifetime. Especially because he has already built a home. His plan? Simple and sensible. He will withdraw 5 per cent each year—Rs 5 lakh to start with—for his living expenses. The rest will stay invested in a balanced portfolio of 50 per cent equity and 50 per cent debt, with an expected return of 8 per cent per annum. He believes this will see him through the next 30 years, comfortably. But Mr Srinivasan forgets to factor in the most silent ye

This article was originally published on July 21, 2025.