Earn Rs 3 Lakh/Month Post-Retirement: CA Shows How SIPs Can Build a Lifetime Income Stream
Earn Rs 3 Lakh/Month Post-Retirement: CA Shows How SIPs Can Build a Lifetime Income Stream
Disciplined investing with step-ups can turn savings into a lifelong cash machine
By consistently investing in Systematic Investment Plans (SIPs) and gradually increasing contributions, individuals can build a substantial post-retirement income, according to chartered accountant and tax expert Nitin Kaushik.
Kaushik shared an illustrative example on X, demonstrating how a 35-year-old doctor could secure a monthly post-retirement income of Rs 3 lakh. The strategy involves investing Rs 75,000 per month in an SIP, with an 8% annual step-up over 20 years. Assuming an 11% CAGR, this disciplined approach can accumulate a corpus of Rs 10.5 crore.
Post-retirement, by withdrawing 5% of the corpus through a systematic withdrawal plan (SWP), the investor can receive Rs 3 lakh every month for life. Kaushik highlighted that this method combines regular investing with gradual increases, allowing wealth to grow while keeping pace with inflation and lifestyle changes.
Kaushik emphasized, “The formula is simple: Earn → Invest → Grow → Withdraw sustainably. By choosing assets that appreciate over time, compound interest helps build a reliable source of lifetime income.”
This example underlines the power of long-term disciplined investing and step-ups in SIPs, turning consistent savings into a cash-generating machine that supports financial independence post-retirement.
Disclaimer: The information provided in this article is for general informational purposes only and should not be considered as financial, investment, or tax advice. Investments in mutual funds, SIPs, and other financial instruments are subject to market risks, and past performance is not indicative of future returns.
