Why does the US 4% Rule not work directly in India?

Safe Withdrawal Rate (SWR) Calculator India - Trinity Study Backtester | myfinedu.com

Longevity Backtester

Safe Withdrawal Rate (SWR) & Indian Longevity Simulator

Verified Indian financial mathematics, statutory regulations, and step-by-step actionable breakdowns.

Tags:#Safe Withdrawal Rate#Trinity Study India#Sequence of Returns#Retirement Longevity#Portfolio Survival

Safe Withdrawal Rate (SWR) & Longevity Engine

30–45 year portfolio survival backtesting with Indian inflation & asset mix

100% Survival across 35 Years

Retirement Corpus (Day 1)₹3,00,00,000

₹50 Lakhs₹10 Crores

Initial Withdrawal Rate (% SWR)3.50% p.a.

2.5% (Ultra Safe)3.25% - 3.5% (Indian Sweet Spot)4.5%+ (Depletion Risk)

Longevity: 35 Yrs

Post-Retirement Inflation: 6%

Portfolio Asset Mix50% Equity : 50% Debt

Blended Portfolio CAGR: 9.25% (assuming 11.5% Equity & 7% Debt)

Year 1 Cashflow & Longevity

Initial Monthly Pension₹87,500 / mo(₹10,50,000 in Year 1)

Terminal Wealth (Yr 35)₹15,41,47,692✓ Fully Preserved & Compounded

💡 Trinity Rule in India Insight:The US 4% rule frequently exhausts Indian portfolios because Indian inflation (6%) is double the US rate (2.5%). An Indian SWR of 3.0% - 3.5% ensures perpetual multigenerational wealth!

35-Year Portfolio Survival Trajectory (Selected SWR vs 4% Rule vs 3% Rule)

Mathematical Formula & Calculation Engine

Simulates year-by-year portfolio depletion with Indian inflation (6%), portfolio rebalancing between equity and debt, sequence of returns risk, and calculates portfolio survival probability.

Corpus(t+1) = [Corpus(t) - Withdrawal(t)] × [1 + Weighted Return(t)] | Withdrawal(t+1) = Withdrawal(t) × (1 + Inflation)

Why Use the SWR Longevity Engine?

Reveals why the US 4% Trinity rule causes high depletion risk in India due to 6% inflation

Visualizes year-by-year 35-year portfolio survival trajectory

Dynamic Equity-to-Debt portfolio blended return simulator

Sequence-of-returns stress testing for early retirement

SWR Longevity Engine FAQs

The US 4% rule (Trinity Study) assumed 2.5%-3% long-term inflation and 30-year horizons. In India, retail inflation is 5.5%-6.5% and early retirees often face 35-45 year horizons. An Indian SWR of 3.0% to 3.5% with a 50:50 equity:debt asset mix provides high portfolio survival.

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