Retirement Plan: If your retirement date is approaching, do not forget to invest your retirement corpus wisely so that you continue to receive a regular monthly income in the future.

Retirement Plan: Retiring is not easy for salaried individuals. While having ₹50 lakh at the time of retirement sounds impressive, the real test begins after retirement. The question arises: how can this money be converted into a stable monthly income that is protected against inflation? Post-retirement, the challenge is not merely earning money, but preventing the value of your savings from eroding over time.

Inflation: The biggest threat after retirement

In reality, inflation is the greatest threat post-retirement, as it gradually erodes the purchasing power of your savings. Medical expenses, daily living costs, electricity bills, and other expenses tend to rise over time. This is the true risk associated with retirement. Therefore, retirement planning is no longer just about 'safeguarding money'; it is about securing your lifestyle.

A shift in the mutual fund equation

This is where mutual funds come into play; they function not as aggressive investment tools, but as steady instruments that provide a hedge against inflation. Conservative hybrid funds and equity savings funds combine the stability of debt instruments with limited equity exposure. They exhibit lower volatility compared to pure equity funds while offering higher growth potential than pure fixed deposits.

How much monthly income from ₹50 lakh?

Based on available data and depending on the fund structure and market conditions, a retiree with a corpus of ₹50 lakh can generate an annual income of approximately ₹2.5 lakh—equating to about ₹20,800 per month—based on a 5% withdrawal rate. However, if the amount is invested across various investment options that yield an average portfolio return of 7 to 8 percent, the monthly income could increase to approximately ₹25,000–₹35,000.