WANT RS 50,000 MONTHLY AT RETIREMENT: REPORT REVEALS CORPUSES YOU NEED FOR FD, ANNUITY AND SWP INVESTMENTS

If you want to retire today with Rs 50,000 per month income (Rs 6 lakh annually), how much money should you ideally have at the time of retirement if you have fixed deposit (FD), annuity or systematic withdrawal plan (SWP) as investment tools?

A report titled ‘The Science of Retirement Planning: Navigating Hidden Risks in a Long Retirement’ reveals the amounts one requires to get Rs 50,000 per month (Rs 6 lakh annually) through FD, annuity and SWP investments.

Numbers in the report reveal retirement corpus required under different income strategies over a 40-year horizon, assuming survival up to age 100.

The analysis compares four popular retirement income instruments — FD, life annuity, SWP, and ScientificPay (a strategy prepared by OmniScience Capital Advisors, the company that prepared the report) — to show how much total retirement corpus is required to safely generate Rs 6 lakh annually from the start of retirement.

Also read: Rs 19.50 lakh/month income on Rs 18,000 investment? Government explains reality of viral message

Let’s see what the report says-

Fixed Deposit (FD)

To generate Rs 6 lakh a year safely, the report says, you must have a retirement corpus of Rs 2.30 crore, which is 39 times your yearly expenses (Rs 6 lakh). If you depend mainly on bank fixed deposits, you need a very large corpus because FD returns are relatively low and may barely beat inflation after tax, says the report.

Life Annuity

For an annual expense of Rs 6 lakh, the required retirement corpus is Rs 2.35 crore, which is 40 times your yearly expenses, the report reveals A life annuity is a financial product that offers guaranteed lifelong income payouts to the annuitant in exchange for a lump sum investment or regular premiums.

Four strategies to get Rs 50,000 monthly income

Strategy	Annual expenses at beginning of retirement	Corpus required	Corpus as a multiple of current expenses
Fixed Deposit	₹6 lakh	₹2.30 crore	39x
Life Annuity	₹6 lakh	₹2.35 crore	40x
SWP	₹6 lakh	₹1.60 crore	27x
ScientificPay	₹6 lakh	₹1 crore	17x

SWP (Systematic Withdrawal Plan)

If your annual expense is Rs 6 lakh and you plan to invest using a SWP, the required retirement corpus is Rs 1.60 crore, which is 27 times your annual expenses.

What is a SWP (Systematic Withdrawal Plan) in mutual funds?

The SWP is a type of strategy in mutual funds. It enables all investors to regularly withdraw a fixed amount from their mutual funds.

ScientificPay strategy

With the ScientificPay strategy, for an annual expense of Rs 6 lakh, the required retirement corpus is Rs 1 crore, which is 17 times your yearly expenses.

4 investment strategies compared

Parameter	Fixed Deposit	Life Annuity	SWP	ScientificPay
Cashflow received vs needed @ 70	₹4.8 / ₹10.7 lakh (Deficit)	₹6.2 / ₹10.7 lakh (Deficit)	₹7.3 / ₹10.7 lakh (Deficit)	₹11.5 / ₹10.7 lakh (Surplus)
Corpus longevity	Age 75 – Depleted	Ends immediately	Age 83 – Depleted	Lifetime sustainable
Inflation protection	38%	55%	68%	101%
Lifestyle impact	Downgrade	Downgrade	Downgrade	Upgrade
Risk spectrum	Conservative	Conservative	Aggressive	Aggressive
Legacy corpus @ 100	₹0 (Nil)	₹0 (Nil)	₹0 (Nil)	₹14.4 crore