4% Withdrawal rule for retirement: While making a long-term investment, one needs full clarity about its investment goal. But, it's not that easy to calculate how much retirement corpus one would need post-retirement. Then take 7 per cent inflation and calculate the current sum rising at 7 per cent for the period he or she would be retiring. They said that 4% withdrawal rule for retirement is applicable on that net sum that one would need at the time of retirement. Using 4% withdrawal rule for retirement, one who is retiring today will require ₹1.5 crore ( ₹6 lakh x25) because 4% withdrawal rule allows a person to use one's retirement corpus for 25 years post-retirement."

Source: Mint May 08, 2021 02:15 UTC