Retirement Income: Guaranteed vs Managed
At retirement you can turn your corpus into a guaranteed lifelong income (annuity-style), or keep it invested and withdraw from it each year. This tool models both: the guaranteed option pays a fixed amount that inflation slowly erodes and leaves nothing behind; the managed portfolio pays inflation-indexed withdrawals, can leave a large legacy — or run out early if markets disappoint. It even lets you stress-test the sequence of early returns, the single biggest risk to a drawdown plan.
Your retirement
The two options
Guaranteed income (annuity)
Managed portfolio (SWP)
Even returns — early losses hurt a withdrawing portfolio far more than late ones.
₹4.95 Cr
Extra lifetime income from managing it yourself
₹8.45 Cr
Capital left at the end
Real monthly income over time
Inflation-adjusted — what your income actually buys each year
Managed portfolio balance
Does the money last? Watch where the line hits zero.
Illustrative projection under fixed assumptions. Real annuity products, taxes and market returns vary, and the managed outcome depends heavily on the sequence of early returns. Not financial advice.
What this means
A guaranteed income product converts your corpus into a fixed annual payout for life. It is simple and predictable, but the payment usually does not rise with inflation — so its real value shrinks every year — and when you pass on, nothing is left of the capital. The alternative is to keep the corpus invested and withdraw a set percentage each year, increasing the withdrawal with inflation so your lifestyle holds. That can deliver more real income over time and often leaves a sizable legacy, but it carries a real danger: if markets fall hard in the first few years of retirement, withdrawing during the slump can permanently damage the portfolio and cause it to run out early. That is “sequence-of-returns risk,” and this tool lets you model it directly by choosing a weak, steady, or strong opening three years. Comparing the two paths on real (inflation-adjusted) monthly income, total lifetime income, tax paid, and capital remaining shows the genuine trade-off: certainty and simplicity versus flexibility, inflation protection, and legacy — with market risk attached.
Frequently asked
Is a guaranteed annuity better than managing my own retirement portfolio?
A guaranteed annuity wins on certainty and simplicity — you cannot outlive it and you never have to make investment decisions. A managed portfolio usually delivers more real, inflation-protected income and can leave a legacy, but only if it survives poor early returns. The right answer depends on your risk tolerance, other income sources, and how much you value leaving something behind.
What is sequence-of-returns risk?
It is the risk that the order of your investment returns — not just the average — sinks your plan. Because you are withdrawing money in retirement, a few bad years early on force you to sell more units at low prices, permanently shrinking the base that has to recover. The same average return with strong early years can leave you far better off. Use the market-scenario switch to see this effect.
Does the tool account for inflation and tax?
Yes. The guaranteed income is shown both in nominal terms and in real (inflation-adjusted) terms so you can see its purchasing power fade. Managed-portfolio withdrawals rise with inflation, and tax is applied to the gain portion of each withdrawal at your chosen slab, mirroring how drawdown is typically taxed.
What withdrawal rate is safe?
There is no universal number, but many retirees anchor around 4–6% of the starting corpus, adjusted for inflation. The safe figure depends on your expected return, horizon, and tolerance for running low. Set the withdrawal rate and a weak market scenario together — if the portfolio still lasts, the plan is far more robust.
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