Investing
How SWP works
Systematic Withdrawal Plans for income from a corpus—what to model and what can go wrong.
5 min read · Updated August 2026
SWP in one line
An SWP redeems a fixed amount (or units) on a schedule so you receive cash while the remaining corpus stays invested.
Sequence risk
Withdrawing during a deep market fall can deplete units faster. Stress-test lower returns and higher withdrawals in a calculator before relying on an SWP for essential expenses.
Related calculators
Keep reading
Educational content from Aaru Wealth. Not investment, tax or legal advice.