{"id":11327,"date":"2025-08-20T10:09:13","date_gmt":"2025-08-20T10:09:13","guid":{"rendered":"https:\/\/www.europesays.com\/ie\/11327\/"},"modified":"2025-08-20T10:09:13","modified_gmt":"2025-08-20T10:09:13","slug":"ca-explains-how-two-retirees-with-rs-2-crore-each-can-have-different-retirement-outcomes","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ie\/11327\/","title":{"rendered":"CA explains how two retirees with Rs 2 crore each can have different retirement outcomes"},"content":{"rendered":"

Two retirees, each with Rs 2 crore in savings, decided to withdraw Rs 1 lakh a month for the next 25 years. Surprisingly, one ran out of money by age 72, while the other still had funds at 90.<\/a> The difference, explained CA Abhishek Walia, comes down to something called sequencing risk.<\/p>\n

Walia wrote on LinkedIn, \u201cPerson A retired just as the market crashed. For the first five years, returns were negative. They kept withdrawing Rs 1 lakh every month. Even when markets recovered, the portfolio never bounced back fully.\u201d<\/p>\n

In contrast, he pointed out, “Person B retired in a bull market. The first five years gave strong returns. Their withdrawals hardly affected the portfolio, which grew enough to last decades.”<\/p>\n

Even though both saw the same average return of 10% and had identical withdrawal plans, the order of returns made a huge difference. That\u2019s sequencing risk in action.<\/p>\n

So, how can retirees protect themselves? Walia suggests, \u201cKeep 2\u20133 years of expenses in safe debt or liquid funds before retirement, follow a bucket plan: short-term needs in debt, long-term growth in equity and adjust withdrawals in bad years instead of sticking to a fixed number.\u201d<\/p>\n

He concluded his post by saying, \u201cRetirement planning isn\u2019t just about how much you save. It\u2019s about making sure your money survives the bad years that come too soon.\u201d <\/p>\n

– Ends<\/p>\n

Published By: <\/p>\n

Jasmine anand<\/p>\n

Published On: <\/p>\n

Aug 19, 2025<\/p>\n","protected":false},"excerpt":{"rendered":"Two retirees, each with Rs 2 crore in savings, decided to withdraw Rs 1 lakh a month for…\n","protected":false},"author":2,"featured_media":11328,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[177],"tags":[79,18,19,17,2987,234,235,3887,10980,10981],"class_list":{"0":"post-11327","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-business","9":"tag-eire","10":"tag-ie","11":"tag-ireland","12":"tag-pension","13":"tag-personal-finance","14":"tag-personalfinance","15":"tag-retirement","16":"tag-retirement-funds","17":"tag-retirement-saving"},"share_on_mastodon":{"url":"","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/11327","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/comments?post=11327"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/11327\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media\/11328"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media?parent=11327"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/categories?post=11327"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/tags?post=11327"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}