Topic Details

https://freefincal.com/feed/gn

Last successful fetch

Tue, 31 Mar 2026 02:39:55 +0000

Last ping

Tue, 31 Mar 2026 02:39:08 +0000

Last fetch error

Wed, 21 Jun 2023 20:09:11 +0000 (HTTP 504)

Aggregate statistics

0 fetch request(s) per second to freefincal.com, 0% errors, based on latest 300 seconds

Last item retrieved

Content received

Tue, 31 Mar 2026 02:39:56 +0000

<item>
				<title>How much corpus do I need to retire in 3 years with ₹1.5 lakh/month expenses?</title>
				<link>https://freefincal.com/how-much-corpus-do-i-need-to-retire-in-3-years-with-%e2%82%b91-5-lakh-month-expenses/</link>
				<pubDate>Tue, 31 Mar 2026 00:30:44 +0000</pubDate>
								<dc:creator><![CDATA[M. Pattabiraman]]></dc:creator>				<guid isPermaLink="false">https://freefincal.com/?p=340651</guid>
					<description><![CDATA[Last Updated on March 31, 2026 at 8:09 am A reader says he is 52...]]></description>

				<content:encoded><![CDATA[<figure><img src="https://freefincal.com/wp-content/uploads/2026/02/Retirement-Buckets-suggested-by-the-freefincal-robo-advisor-for-a-52-year-old-who-wants-to-retire-by-55.webp" class="type:primaryImage" /></figure><p id="post-modified-info">Last Updated on March 31, 2026 at 8:09 am</p>
<p>A reader says he is 52 and wants to retire in three years and &#8220;needs a minimum of 1.5 Lakhs per month for the next 15 years&#8221;. He needs to know the total corpus required.</p>
<p>There are a couple of issues here that need to be addressed.  We shall assume that the current expenses are Rs. 1.5 Lakhs a month. So we need to factor in an inflation of about 7% for the next three years.  We need to consider an inflation of at least 6% after retirement.</p>
<p>Why only 15 years? The reader will only be 70 then. The risk of running out of money is huge. So we must plan at least until age 80 (ideally 85 or even 90, but we will stick to 80 for now).</p>
<p>We will consider two cases. Assuming the reader does not have much money to play with, we ask: what corpus is required for a <em>constant</em> income of Rs. 1.5 Lakhs? So assuming a post-tax return of 6% from an annuity, the corpus required is 1.5*12/6% = Rs. 300 Lakhs or Rs. 3 Crores.</p>
<p>Now we will enter these numbers into the <a href="https://freefincal.com/robo-advisory-software/"><strong>freefincal robo advisor tool</strong></a> to determine the corpus required, taking inflation after retirement into account, and how the corpus should be divided into buckets.</p>
<p><strong>Corpus required = </strong>Rs. 5.46 Crores! This corresponds to an initial withdrawal rate (IWR) of 3.3% (annual expenses in the first year of retirement divided by corpus).</p>
<p><strong>Post-retirement planning. </strong>Of the total corpus, 5% is set aside for emergencies. Of the remaining corpus, 10% is set aside for equity, and the rest is fixed income distributed across four buckets.</p>

<ul>
<li>An <strong>income bucket</strong> of 66% of the corpus, guaranteed for the first 15 years of retirement. During this time, investments will be made in the following three buckets.</li>
<li>A <strong>low-Risk bucket</strong> with 18% of the corpus for income from year 16 to year 20 in retirement. The low-risk bucket will have an asset allocation of 80% fixed income, 20% equity during the investment period (years 1 to 15 of retirement).</li>
<li>A corpus from a <strong>medium-risk bucket</strong>, with 11% of the remaining corpus, will provide income for years 21 to 23 in retirement. This bucket shall have an asset allocation of 70% fixed-income and 30% equity during the investment period (year 1 to year 20)</li>
<li>A corpus from a <strong>high-risk bucket</strong>, representing 8% of the corpus, will provide income for years 24 to 25 in retirement. This bucket shall have 30% fixed income and 70% equity during the investment period (year 1 to year 23)</li>
<li>The buckets can either be used sequentially* or actively managed to reduce risk during this investment period through rebalancing and profit booking from one bucket to another. To understand how this works, try this: <a href="https://freefincal.com/the-retirement-bucket-strategy-simulator/">The Retirement Bucket Strategy Simulator</a>.</li>
</ul>
<p>* For sequential use, after 15 years, the low-risk bucket will be turned into 100% debt and provide income for about ten years. After that, the other buckets will also be progressively used. The equity allocation can be decreased over time (this option is available in the robo tool), or one can use hybrid funds for each bucket to minimise churn.</p>
<p>What if the reader has a lesser corpus? We have discussed thumb rules for this earlier, using the <a href="https://freefincal.com/using-safe-withdrawal-rates-to-judge-retirement-corpus-health/">initial withdrawal rate (more commonly known as the safe withdrawal rate) to judge the health of the retirement corpus</a>.</p>
<p><strong>IWR &lt; 3.5% </strong>The retiree can afford to take on capital market risks. The corpus is likely adequate.  Keeping pace with inflation is a reasonable possibility.</p>
<p><strong>IWR &gt; 4.5%</strong> The retiree cannot afford to take on capital market risks. The corpus is likely inadequate. Most of the corpus must be used for a pension, with some cash stashed for emergencies. This was the case we discussed first.</p>
<p><strong>3.5% &lt; IWR &lt; 4.5%</strong> This grey area requires careful examination. The corpus is neither robust nor grossly insufficient. The pension should be the dominant asset in the retirement basket, but perhaps a pinch of risk can be taken. Keeping pace with inflation will not always be possible, and some luck and cautious spending (when possible) would be necessary.</p>
<p>The post <a href="https://freefincal.com/how-much-corpus-do-i-need-to-retire-in-3-years-with-%e2%82%b91-5-lakh-month-expenses/">How much corpus do I need to retire in 3 years with ₹1.5 lakh/month expenses?</a> appeared first on <a href="https://freefincal.com">freefincal</a>.</p>
]]></content:encoded>
		<post-id xmlns="com-wordpress:feed-additions:1">340651</post-id>			</item>