Perpetual income
The corpus and SIP needed for a monthly income that lasts for a set number of years or for ever.
SIP needed, with inflation
₹26,427
every month for 10 years
Corpus needed, with inflation
₹61,40,049
to live off the interest alone
Income at the start
₹35,817
₹20,000 today, inflated over 10 years
SIP needed, without inflation
₹14,757
if ₹20,000 a month never rises
Corpus needed, without inflation
₹34,28,571
same income, held flat throughout
Already provided
₹0
today's savings grow to this
What inflation does to this
Perpetual means the principal is never spent. Only the interest is drawn, so the income never runs out and the corpus can be passed on. The withdrawal stays fixed in rupees once it starts, though, so its buying power falls every year. A fixed-term plan raises the withdrawal with inflation instead, which is why a long fixed-term plan can need a bigger corpus than a perpetual one. If inflation is ignored altogether, the corpus needed falls from ₹61,40,049 to ₹34,28,571. The difference is what it really costs to protect the income from rising prices.