How to Earn ₹70,000 Monthly After Retirement Using SWP ?

SWP after retirement:

Many people stop working after years of service, but regular monthly expenses continue. If you want to earn ₹70,000 every month even after leaving your job, a Systematic Withdrawal Plan (SWP) can be a smart solution.
SWP after retirement

Let’s understand this in simple terms. A 46-year-old person with 24 years of job experience recently quit their job. Their monthly expenses are ₹70,000. How can they manage without working again?

What is SWP?

SWP or Systematic Withdrawal Plan is a method where you invest a lump sum in a mutual fund and withdraw a fixed amount every month. It gives you stable income while the remaining money keeps earning returns.

How Much to Invest?

If you need income only for one year, investing ₹9 lakhs in a SWP can give you ₹70,000 per month for 12 months.
But if you want this income to last for longer, say till age 80 (about 34 more years), then you need a larger investment.
To get ₹70,000 monthly for life with 7.5% annual returns, you will need around ₹1.8 crores. This also considers inflation at 4.5%.

Benefits of SWP

Monthly fixed income
Less tax compared to Fixed Deposits
Remaining investment continues to grow
Emergency withdrawal is possible
More disciplined than regular savings

Things to Remember

Market returns are not guaranteed.
Planning is important: Choose right fund and correct monthly withdrawal.
Withdrawing too much may reduce your capital fast.
Some withdrawals may be taxed.

SWP is very useful for retired individuals or those between jobs. It provides peace of mind with regular income and helps in financial planning. However, consult a financial expert before starting SWP to choose the best fund for your needs.

Disclaimer: This article is for information only. It is not financial advice. Please consult a qualified expert before making investments.