How to get Rs 3L/month from Rs 2 crore EPF fund

A retired individual with Rs 2 crore in their EPF account can continue earning interest for up to 36 months after ceasing contributions. However, post-retirement, the account becomes inactive and interest stops. Tax on interest earned post-retirement is levied at the individual's slab rate. The suggested strategy involves dividing the corpus into three segments.

Rs 50 lakh should be invested in fixed deposits and debt mutual funds to cover living expenses for two to three years. Rs 80 lakh can be allocated to dynamic asset allocation or hybrid mutual funds for medium-term goals over the next three to seven years. The remaining Rs 70 lakh should be placed in flexi-cap equity mutual funds to generate long-term growth and help combat inflation over a seven-year-plus period.

Assuming a blended annual return of 9-10%, this corpus could generate approximately Rs 20 lakh annually towards expenses. This withdrawal rate with projected returns could sustain the corpus for around 15 years. However, this strategy requires supplemental income sources.