Is SWP better than a pension or annuity?

For most retirees, yes. SWPs offer liquidity, tax efficiency, and the corpus passes to heirs. Annuities lock your money and offer lower post-tax yields.

Each withdrawal is split into capital + gain. Only the gain is taxed — at LTCG rate if held over 1 year for equity funds (12.5% above ₹1.25L).

What fund should I use for SWP?

Hybrid or large-cap funds with lower volatility. Avoid pure small-cap during withdrawal phase — sequence-of-returns risk can drain corpus faster.

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WealthVizioCrunching the numbers…

Retirement

SWP Calculator

Plan how long your corpus lasts at any monthly withdrawal — built for retirement income.

Inputs

Corpus

₹1,00,000₹50,00,000₹10,00,00,000

Monthly withdrawal

₹1,000₹40,000₹10,00,000

Expected return

1%1020%

Planning horizon

yrs

1 yrs3050 yrs

Results

Corpus lasts beyond 30 yrs

Years corpus lasts

30 yrs

Total withdrawn

₹1,44,00,000

Final balance

₹87,67,480

What is an SWP?

A Systematic Withdrawal Plan (SWP) is the mirror image of an SIP. You park a lump sum in a mutual fund, and the fund auto-redeems a fixed amount every month and credits it to your bank.

SWPs are popular for retirement income because the remaining corpus stays invested and continues to grow. Tax is paid only on the gain portion of each withdrawal — not the full amount — which is far more tax-efficient than FD interest.

How SWP math works

Balance(t) = Balance(t-1) × (1 + r) − W