Question 1

What is the 4% rule?

Accepted Answer

The 4% rule suggests that if you withdraw 4% of your total retirement savings in your first year of retirement and adjust for inflation each year after, your money should last for 30 years.

Question 2

What inflation rate should I use?

Accepted Answer

For long-term retirement planning in India, using an inflation rate between 6% and 8% is generally recommended to be safe.

Question 3

What return rate is realistic?

Accepted Answer

Conservative estimates use 10%–12% for long-term equity-focused portfolios, while debt products like EPF/PPF typically offer 7%–8%.

Question 4

How much corpus is enough in India?

Accepted Answer

There is no single number, but many planners aim for a corpus that is 25x–30x their annual post-retirement expenses.