What is retirement planning?

Retirement planning is the process of setting financial goals and creating strategies to ensure a steady income after you stop working. It involves estimating future expenses, identifying sources of income such as pensions, savings, investments, and social security, and managing assets to grow wealth over time. Factors like inflation, healthcare costs, lifestyle choices, and life expectancy are considered. It also includes choosing the right investment options to balance risk and return based on age and financial goals. Retirement planning encourages disciplined saving, tax planning, and risk management to ensure financial independence and security during retirement years. Starting early is key, as compounding benefits increase savings growth and reduce financial stress in later life stages.