What is a Withdrawal Planner?
While a Corpus Calculator helps you figure out how much you need to save before retirement, the Retirement Withdrawal Planner helps you manage the money during retirement.
It answers the most critical question in financial planning: “Will I outlive my money?”
Balancing Growth and Withdrawals
During retirement, your corpus is fighting a two-front war:
- You are actively withdrawing money every month to live.
- The remaining money is generating interest/returns.
If your withdrawal rate exceeds the growth rate of the corpus, the principal will begin to deplete. This planner simulates exactly how many years it will take for the corpus to hit zero based on your expected monthly withdrawal, expected inflation, and the return generated by the remaining funds.
This calculator assumes a constant, average return (e.g., 8% every year). However, in reality, markets are volatile. If you experience negative returns in the first 3-5 years of your retirement while simultaneously withdrawing money, your corpus will deplete much faster than this simple average simulation suggests. This is known as Sequence of Returns Risk.