The basic question you need to ask yourself is when you plan to retire.
The next step is to keep a very close watch on what is lightening your wallet and by how much - your costs. Find out what your current expenses are and subsequently find out what will be your expenses could amount to by the time you retire, assuming a realistic rate of inflation.
Step 3 is therefore to invest your savings in vehicles that will offer you returns that will beat inflation and leave some money in your pocket to spend. Thus, assuming that rate of return that you require to achieve this expense that you have calculated for post-retirement period, you can work out the total pool required.
Once you know the pool required you can look at the time horizon, risk appetite and existing asset allocation and then plan your future savings and asset allocation to achieve this goal. At times you may find that your savings are less in which case you may have to tweak your retirement goals. Click Here to go to our Retirement Calculator, which will give you a basic idea of what you need to do.
Remember, in addition to retirement goals, your savings will also have to be invested for other goals such as your child’s education, marriage etc. The above is a very brief explanation to plan for retirement. You can consult your financial advisor for further details. You can also visit websites like https://www.personalfn.com/
to understand this better.