What is the main goal of retirement planning?

The main goal of retirement planning is to ensure sufficient resources to maintain a desired lifestyle in retirement. This approach focuses on creating a financial strategy that not only accumulates wealth but also considers how that wealth will support the individual’s needs and wants once they stop working.

Retirement planning involves understanding personal expenses, lifestyle expectations, and potential income streams during retirement, such as savings, pensions, Social Security, and investments. By prioritizing the maintenance of a desired lifestyle, individuals can make informed decisions about how much to save and what investment strategies to pursue.

Accumulating enough wealth to avoid working in old age is somewhat related but doesn’t comprehensively address the necessity of ensuring that those resources can sustain an individual's lifestyle preferences. Likewise, maximizing earnings while employed and benefiting from employer stock options have more to do with income generation during working years rather than planning for a secure and fulfilling retirement phase. Therefore, the emphasis on maintaining a desired lifestyle is essential in effective retirement planning.