What is retirement planning and why is it important?

Retirement planning is the process of setting goals and creating a financial plan to ensure a comfortable and financially secure retirement. It involves identifying your retirement goals, estimating your future expenses, determining your retirement income needs, and developing a plan to achieve those goals.

Retirement planning is important because it allows you to take control of your future and make informed decisions about your finances. Without proper planning, you may be at risk of outliving your retirement savings or not having enough income to cover your expenses in retirement. Retirement planning also helps you to identify potential risks and uncertainties, such as inflation or unexpected expenses, and take steps to mitigate those risks. By starting early and regularly reviewing and updating your retirement plan, you can increase your chances of achieving your retirement goals and living a comfortable and fulfilling retirement.