3-Step Retirement Blueprint for a ₹1 Lakh Monthly Income
Achieving a monthly income of ₹1 lakh after retirement may seem ambitious, but it’s completely doable with a disciplined approach and strategic planning. Whether you're in your 30s or late 40s, this 3-step retirement blueprint can help you build a secure and stress-free financial future.
Step 1: Determine the Corpus Required
To earn ₹1 lakh per month, you need to calculate the total retirement corpus based on expected returns. A good thumb rule is the 4% withdrawal rule, which implies you can withdraw 4% of your corpus annually without depleting it quickly.
Required corpus = ₹1,00,000 × 12 × 25 = ₹3 crore
This assumes an average 8–10% annual return and accounts for inflation and longevity.
Step 2: Build a Diversified Investment Portfolio
To accumulate ₹3 crore, start investing early and stay consistent. Here’s an ideal portfolio mix:
Equity Mutual Funds (60%) – High long-term returns to beat inflation
Public Provident Fund (PPF) / EPF (20%) – Safe, tax-saving instruments
Fixed Income (20%) – Senior Citizens' Savings Scheme (SCSS), RBI Bonds, etc.
Monthly SIP Required (starting at age 30):
₹25,000–₹30,000 in diversified equity mutual funds over 25–30 years may yield the desired corpus.
Step 3: Generate Steady Retirement Income
Once you reach retirement, switch to income-generating assets while protecting your capital:
Annuity Plans: Fixed lifelong income but limited flexibility
SWP (Systematic Withdrawal Plan): Withdraw monthly from mutual funds
Rental Income / REITs: Real estate or real estate investment trusts
Senior Citizen Savings Schemes / SCSS: Government-backed and safe
Tip: Use a mix of SWP + annuity + fixed deposits to balance risk and regular income.
Frequently Asked Questions (FAQ)
Q1. How much money do I need to earn ₹1 lakh per month post-retirement?
You’ll need a corpus of approximately ₹3 crore, assuming a safe 4% withdrawal rate.
Q2. At what age should I start planning for this income goal?
The earlier, the better—ideally in your 20s or 30s. Even starting in your 40s is workable with higher contributions.
Q3. Is ₹1 lakh per month sufficient for retirement in India?
It depends on your lifestyle and location. For urban, upper-middle-class needs, it’s a solid starting point.
Q4. Are annuities a good choice for post-retirement income?
Annuities provide safety and predictability but often have lower returns. Best used as part of a balanced income plan.
Q5. Can I rely only on mutual funds for retirement income?
While mutual funds offer growth and flexibility, a balanced mix with fixed-income products ensures stability.
Published on: June 26, 2025
Uploaded by: PAVAN
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