Why Step-Up SWP is Critical for Indian Retirees

Standard Systematic Withdrawal Plans (SWP) have a fatal flaw: Inflation. If you withdraw ₹50,000/month today, that same amount will only buy ₹25,000 worth of goods in 10 years due to India's average inflation rate of 6-7%.

A Step-Up SWP solves this by increasing your withdrawal amount annually. By raising your payout by 5% or 6% every year, you maintain your purchasing power and lifestyle throughout retirement.

How This Calculator Works

• Total Corpus: Your accumulated retirement fund (Mutual Funds, EPF, PPF).
• Initial Withdrawal: The monthly amount you need today to survive.
• Step-Up %: We recommend setting this to 6% to match India's CPI Inflation.

The Math Behind the Strategy

If you invest ₹1 Crore at 8% return and withdraw ₹60,000/month (fixed), your money lasts longer but loses value. With a Step-Up SWP, your withdrawal increases to ₹63,600 in Year 2, ₹67,416 in Year 3, and so on. Use this tool to check if your corpus can survive this increasing load without running out too early.