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Calculate sustainable monthly income from retirement corpus at target return
Monthly Income
Annual Income
Withdrawal Rate
An annuity is a financial instrument that converts a lump-sum retirement corpus into predictable monthly or annual income for a defined period (or lifetime). Using the present value of annuity formula (PMT = PV / [1 - (1+r)^-n] / r), this calculator shows sustainable withdrawal rates that prevent premature corpus depletion. For Indian retirees, understanding annuity is critical because it bridges the gap between a one-time pension/corpus and lifetime living expenses. The 4% withdrawal rule—withdrawing 4% of initial corpus annually (₹4L from ₹1 crore)—is widely recommended to ensure corpus lasts 30+ years. This calculator applies to both commercial annuities (purchased from insurance companies) and systematic withdrawal plans (SWP) from mutual funds. For a ₹1 crore corpus at 6% expected returns, sustainable monthly income is approximately ₹83,000, ensuring both inflation protection and longevity security. This tool is essential for anyone transitioning from earning to consuming their retirement savings.
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This calculator is provided for informational and educational purposes only. While we strive for accuracy, results should be verified with official sources or by consulting qualified professionals. Tax laws, rates, and regulations are subject to change. GotRedFlags is not responsible for financial decisions made based on these tools.