Pension planning is the process of preparing for financial security in retirement. It involves assessing current savings, estimating future expenses, and determining how much money will be needed to maintain a desired lifestyle. Individuals often contribute to retirement accounts, such as 401(k)s or IRAs, to build a nest egg for their later years. Effective pension planning also includes understanding different types of pensions, such as defined benefit and defined contribution plans. It is essential to consider factors like inflation, life expectancy, and potential healthcare costs to ensure that funds last throughout retirement.