Retirement planning is the process of planning for life after work ends. It includes setting financial and non-financial goals and planning how to achieve them. Financial goals revolve around how much you want to save for each of your goals such as, at what age to retire, how much to save for retirement, where to live and so on.
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Retirement planning has three stages:
1. At the beginning of work life, retirement planning means setting aside money for retirement.
2. In the middle of career, it means saving and allocating money to various asset classes. It also involves taking the necessary steps to achieve expected return on investments.
3. On reaching retirement age, you don’t pay but your investments pay you.
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