A retirement corpus of over Rs 2 crore can generate steady income if managed well. Dilshad Billimoria said, "Your current corpus is comfortably above the required amount." Experts suggest using part-time earnings for expenses while keeping the corpus for emergencies. A bucket strategy helps your money last through your retirement years.

How can you generate regular income from your retirement corpus and make it last?

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Retirement corpus

Are you wondering how a retirement corpus of over Rs 2 crore can generate a steady income and last through retirement? If you are also willing to work part-time for the next five years and earn Rs 1 lakh a month, with no major liabilities, here is some guidance, as reported by ET Wealth.

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Monthly expenses

If your monthly expenses are Rs 1 lakh, you would need a retirement corpus of about Rs 2.16 crore, assuming an annual return of 10%, inflation of 6% and a life expectancy of 90 years. Your current corpus is comfortably above the required amount, said Dilshad Billimoria, MD & Chief Financial Planner, Dilzer Consultants.

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Five-year plan

The expert said that since you plan to earn Rs 1 lakh a month for the next five years, you should use the income from your consulting work to meet your expenses during this period.

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Proper utilisation of the corpus

The expert said you could use the corpus accumulated so far to meet medical emergencies and other unforeseen expenses. It is advisable to maintain a separate medical corpus, over and above your health insurance, to cover unexpected medical costs.

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Asset allocation strategy

The asset allocation should follow a bucket strategy. The first two years' expenses after you stop working can be parked in an arbitrage fund. The second bucket, meant to fund expenses from the third to the fifth year, can comprise equity savings and hybrid funds for tax efficiency.

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Strategy beyond five years

The final bucket, meant to meet expenses beyond five years, can be invested in equities, the expert said. A Systematic Withdrawal Plan (SWP) can be used to make tax-efficient withdrawals, while helping the corpus last through retirement and providing for ad hoc expenses.