What is the primary purpose of retirement planning?

The primary purpose of retirement planning is to ensure adequate financial resources during retirement. This involves setting aside funds and making investment decisions that will provide a stable income once one is no longer earning a regular salary from employment. By planning ahead, individuals can assess their potential expenses in retirement, such as housing, healthcare, and lifestyle needs, and work towards accumulating the necessary savings to cover those expenses without financial stress.

In contrast to this purpose, acquiring luxury items while working, avoiding all types of investments, or maximizing current spending do not address the long-term financial security needed for a comfortable retirement. Luxury purchases may divert funds away from savings, avoiding investments limits growth potential of assets, and maximizing current spending can leave little to no savings for the future. Thus, focusing on retirement planning ensures individuals can maintain their desired quality of life after they have stopped working.