If you have got a Rs 2.5-crore nest egg and you’re looking to plan your retirement over the next 25 years, the first question that may come to your mind is what the ideal withdrawal rate is. This is basically the amount you can take out to keep your corpus going for those 25 years.
When it comes to retirement planning with a corpus of Rs 2.5 crore, there are several withdrawal strategies that you can consider. You could opt for a fixed withdrawal rate, like 4%, 5% or even higher. Alternatively, you might start with a certain monthly withdrawal amount that increases every year by the percentage of your choice. But which method will actually provide you with a monthly income for 25 years from your Rs 2.5 crore corpus? And what would be a sustainable monthly withdrawal amount?
