Why is retirement planning considered important?

Retirement planning is essential because it ensures sufficient financial resources for individuals after they leave the workforce. This planning involves setting aside money, investing wisely, and managing savings to create a reliable income stream in retirement. As many individuals spend a significant portion of their lives in retirement, having enough funds is crucial for covering living expenses, healthcare, and other potential needs that arise during this phase of life. Effective retirement planning considers factors like lifestyle expectations, inflation, and increasing healthcare costs, enabling individuals to maintain their standard of living without financial stress once they retire from their careers.

The importance of this planning cannot be overstated, as it prepares individuals for a time when they may no longer have a regular paycheck and ensures they can enjoy their retirement years comfortably.