Client Profile:
👤 Mr. Gupta, 60 years old, recently retired senior executive
💼 Corpus: ₹2.5 Crore from retirement benefits & savings
🎯 Goal: Generate ₹1 lakh/month income for 20 years, while keeping capital safe
The Retirement Income Challenge
Mr. Gupta reached out to Team Saan with a concern that many retirees share:
“How do I get a reliable monthly income without depleting my entire savings? I want something better than an FD but without high risk.”
The Solution: Systematic Withdrawal Plan (SWP) in Mutual Funds
We suggested an SWP strategy — a smart way to:
- Generate consistent monthly cash flow
- Beat inflation
- Grow your corpus over time
- Avoid the low returns & tax inefficiencies of FDs
The SWP Plan: How It Worked
We structured the ₹2.5 Cr corpus in a diversified hybrid mutual fund, assuming:
- Annual return: ~12%
- Withdrawal: ₹1,00,000/month
- Duration: 20 years
Result:
- Mr. Gupta received ₹1 lakh every month without fail
- At the end of 20 years, his corpus still grew to ₹3.65 Cr, even after withdrawals
- Adjusted for inflation, his real purchasing power was preserved
Stable income + Capital growth + Inflation hedge = Financial peace of mind
Why SWP Worked for Mr. Gupta
- Capital Efficiency:
Unlike fixed deposits, the capital wasn’t locked at 7%–8%. It was invested for growth and flexibility. - Tax Advantage:
Long-term capital gains (after 3 years) from debt/equity hybrid funds are more tax-efficient than interest income from FDs. - Liquidity & Control:
He could modify or pause withdrawals at any time — unlike annuity or pension products. - Emotional Comfort:
The idea of growing his corpus while living off it gave him confidence and freedom.
Final Learning: Retirement Doesn’t Mean Stagnation
Mr. Gupta’s story proves that with the right planning:
- You can live well in retirement
- Beat inflation without taking unnecessary risks
- Grow your capital while using it