{
  "id": 6748158,
  "title": "Can Rs 2.5 cr corpus give you Rs 2 lakh/m for 25 yrs?",
  "url": "https://urgent.news/2026/09/11/can-rs-2-5-cr-corpus-give-you-rs-2-lakh-m-for-25-yrs",
  "topic": "business",
  "section": "Business",
  "published": "2026-09-11T10:16:19.000Z",
  "source": {
    "name": "The Economic Times",
    "slug": "the-economic-times",
    "url": "https://economictimes.indiatimes.com/wealth/invest/rs-2-5-crore-retirement-corpus-planning-monthly-income-withdrawal-calculator-can-you-get-rs-2-lakh-monthly-income-for-25-years/articleshow/134059467.cms"
  },
  "original_language": "en",
  "account": "If you possess a Rs 2.5 crore retirement corpus, determining the appropriate withdrawal rate becomes crucial for sustaining the funds for 25 years. Various withdrawal strategies exist, such as fixed withdrawal rates (4%, 5%, or higher) or a monthly withdrawal amount that increases yearly by the chosen percentage. The goal is to select a method that yields a sustainable monthly income for the desired period.\n\nExperts often advise investing the retirement corpus in low-risk instruments like liquid funds, debt funds, SCSS, FDs, and the post office Monthly Income Scheme (MIS) to withdraw a monthly income. It is recommended to choose a withdrawal rate that is less than the annualized return of the retirement corpus. For example, with a 6% annualized return, selecting a withdrawal rate between 3%-5% ensures the corpus lasts for an extended period.\n\nThe table below showcases the potential longevity of the Rs 2.5 crore corpus at various withdrawal rates and annualized returns:\n\nAnnual return | Withdrawal rate | Monthly withdrawal | Corpus will end\n--------------|-----------------|-------------------|----------------\n6% | 4% | ₹ 10,00,000 | Lifetime\n6% | 5% | ₹ 12,50,000 | Lifetime\n6% | 6% | ₹ 15,00,000 | 49 years\n6% | 7% | ₹ 17,50,000 | 28 years\n6% | 8% | ₹ 20,00,000 | 21 years\n6% | 9.60% | ₹ 24,00,000 | 15 years\n\nAs the table illustrates, a 4%-5% withdrawal rate at a 6% annualized return allows the corpus to last a lifetime. With a 6% withdrawal rate, the corpus can cover monthly expenses for 49 years. However, increasing the withdrawal rate to 8% results in a 21-year lifespan, and raising it to 9.60% only sustains the corpus for 15 years.\n\nConsidering the impact of inflation on monthly expenses, it is essential to choose a withdrawal amount that allows for annual increases. For instance, withdrawing Rs 1,00,000/month and increasing the withdrawal rate by 5% each year causes the monthly expenses to rise to Rs 1.05 lakh and Rs 1.11 lakh in the next two years, respectively.\n\nTo achieve a 25-year retirement period, withdrawing Rs 2 lakh/month in the first year while increasing the withdrawal amount by 5% annually will deplete the corpus within approximately 11 years. To prolong the corpus, starting with a lower withdrawal amount, such as Rs 80,000 or Rs 90,000 per month, and increasing it by 5% annually, may help sustain the funds for over 25 years, provided the corpus earns a 6% annualized return.",
  "summary": null,
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}