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{% from "_notes.html" import fine_print %}
{% block title %}{{ page_title }} · Networthy HQ{% endblock %}
{% block main_class %}wide{% endblock %}
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{% if user %}
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Enough that what you withdraw each year, rising with inflation, doesn't outrun what
the corpus earns. Put in your monthly spending and see the number at each withdrawal
rate — and, if you add what you already have, how long it would actually last.
{% if not user %}It's all worked out in your browser: nothing you type is sent to us.{% endif %}
The corpus you'd need at each withdrawal rate, and where you stand against it.
At a 3% withdrawal rate — the defensible assumption for India —
retiring on ₹1 lakh a month takes about
₹4 crore. At the American 4% rule it's ₹3 crore; at a cautious
2.5% it's ₹4.8 crore.
Corpus = a year's spending ÷ the withdrawal rate. A 4% rate is 25× your annual
spending, 3% is 33×, 2.5% is 40×.
Withdrawal calculators usually assume you take out the same rupee amount forever.
You don't — you spend to live, and living gets dearer. These are years-until-empty
with the withdrawal rising at {{ "%g"|format(default_inflation) }}% a
year, which is what changes the answer.
Read the row you're planning on, then read the column to its left. A 4% withdrawal
outlives {{ horizon }} years at 10% returns and empties in 37 years at 8% — the plan didn't
change, the returns did. That gap is the argument for a lower rate.
The corpus figure is a year's spending divided by the withdrawal rate — the standard
rule-of-thumb inversion, nothing more. The duration table runs a year-by-year loop:
the balance earns the return, then the year's spending is withdrawn, and that
spending rises with inflation each year. No tax is modelled, so every figure here is
somewhat optimistic.
The famous 4% rule comes from the Trinity study — US stocks and
bonds over 1926–1995, a 30-year retirement, roughly 3% inflation, with Social
Security underneath it. India matches none of those: general inflation runs nearer
6%, healthcare costs rise faster still, the reliable return history is shorter, and
there is no state pension floor to catch you. 2.5–3% is the
defensible range here, which means 33–40× your annual spending
rather than 25×.
Averages, not sequences. A retirement that meets a 10% average return but takes its
bad years first can fail where the same average in a kinder order succeeds — and
nobody gets to choose the order. Treat these as the floor of what you need, not a
target to just reach.
This works off two figures you typed. Networthy HQ tracks the actual ones — every
asset priced live, your real spending by category, and a year-by-year projection to
95 that counts your goals along the way.
How much do I need to retire?
What retiring today costs
Corpus needed by monthly spending
{% for row in corpus_rows %}
You spend
{% for p in presets %}
{{ "%g"|format(p.pct) }}% ({{ "%.0f"|format(100 / p.pct) }}×)
{% endfor %}
{% endfor %}
{{ row.monthly_label }}/month
{% for n in row.needed %}
{{ n.label }}
{% endfor %}
SWP: how long does the money actually last?
{% for row in duration_rows %}
Withdraw each year
{% for r in returns %}
if returns are {{ "%g"|format(r) }}%
{% endfor %}
{% endfor %}
{{ "%g"|format(row.draw) }}% · {{ "%.0f"|format(row.multiple) }}× corpus
{% for y in row.years %}
{% if y is none %}{{ horizon }}+ years{% else %}{{ y }} years{% endif %}
{% endfor %}
Where these numbers come from
The arithmetic
Why 3% and not 4%
What this can't tell you
Then check it against your real numbers
Also useful: where your net worth ranks among adults in India and worldwide.
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