How will i know what is the right amount i need to target for post retirement plans? What if i want to retire earlier than what is usually the norm?
To calculate the retirement corpus needed - you will need to outline three things:
1. What is the post-retirement monthly income needed by you and for how many years you need this income
2. Are you planning to do a big expense post-retirement - like buying a new house etc.
3. Is your post-retirement healthcare expenses taken care off - via health insurance, critical illness cover etc.
Adding inflation of 5-6% annually to each of these expenses will help you derive an approximate sum needed by you before retirement to manage them.
Hope this helps.