Retirement planning is the process of preparing for financial stability and security after leaving the workforce. It involves assessing current savings, estimating future expenses, and determining how much money will be needed to maintain a desired lifestyle. Key components include setting retirement goals, understanding Social Security benefits, and exploring various investment options. Effective retirement planning often includes creating a budget, contributing to retirement accounts like 401(k)s or IRAs, and considering healthcare costs. It is essential to start planning early to take advantage of compound interest and ensure sufficient funds are available when retirement begins.