Retirement planning has two halves. The first is building a corpus large enough to last. The second, which gets far less attention, is turning that corpus into a monthly income that keeps pace with inflation, is tax-efficient and does not run out. Nurture Capital, led by CA Saurav Goyal, plans both.
We work with families and professionals in Panchkula, Chandigarh, Mohali and Zirakpur who are saving for retirement or are already retired.
Building the corpus
We start with the income you will need in today’s money and work forward: years to retirement, inflation, what you have already saved in EPF, PPF, NPS, deposits and mutual funds, and the gap that remains. A step-up SIP that rises with your income is usually the most practical way to close it.
Try the retirement and step-up SIP calculators to see the numbers for yourself.
What is a systematic withdrawal plan (SWP)?
An SWP pays you a fixed amount from your mutual fund every month by redeeming units. The rest of the corpus stays invested. You choose the amount and the date, and you can change or stop it later.
Because each withdrawal is partly your own capital and partly gains, only the gain portion is taxed. That often makes an SWP more tax-efficient than interest income, which is taxed in full every year.
Making the income last
The biggest risk in retirement is having to sell equity funds during a market fall to pay monthly bills. We reduce that risk by splitting the corpus into buckets:
- Near-term money for the next few years of withdrawals, kept in lower-volatility funds.
- Long-term money in equity, which has time to grow and helps your income keep up with inflation.
The near-term bucket is refilled from the long-term bucket in good years, so you are not forced to sell in bad ones. How much goes where depends on your age, other income and comfort with risk.
How much can you withdraw?
That depends on the size of the corpus, the return it earns, inflation and how long the money must last. Withdraw too much early and the corpus can run down fast. Our SWP calculator shows how long a corpus could last at different withdrawal amounts. We then build the actual plan around your full picture.
How SWP withdrawals are taxed
Under current rules for FY 2026-27:
- Equity-oriented funds: gains on units held for more than 12 months are taxed at 12.5%, with the first ₹1.25 lakh of such gains each financial year exempt. Gains on units held for 12 months or less are taxed at 20%.
- Debt funds bought on or after 1 April 2023: gains are added to your income and taxed at your slab rate, whatever the holding period.
Surcharge and cess apply as usual. Planning which funds to withdraw from, and when, can noticeably reduce the tax you pay. See tax-aware investing.
Common questions
When should I start an SWP?
Usually when your salary or business income stops. Some investors start earlier to supplement income. We set the amount so it is sustainable, not just affordable this year.
Can I change the withdrawal amount?
Yes. An SWP can be increased, reduced, paused or stopped. We usually build in a yearly increase to offset inflation.
Do you look at my EPF, PPF and other savings too?
Yes. A retirement plan only works if it includes everything you own and every source of income you will have.
Nurture Capital (Saurav Goyal) is an AMFI-registered Mutual Fund Distributor, ARN-344992. We are not a SEBI-registered Investment Adviser. Mutual fund investments are subject to market risks, read all scheme related documents carefully. Past performance is not indicative of future returns. Illustrations are not a promise of returns.