Retirement:A situation in which one stops working in one's old age, or at least when one has saved enoughmoney to last the remainder of one's life. Generally, retirement occurs after the age of 65, but thisis not a hard-and-fast rule. Both governments and companies offer pensions, annuities, and otherplans to provide for one's financial needs in retirement. it is important to start planning forretirement.One common expression (Early Mistakes, Late Start & Future Hurdles) about Retirement. forthese reason we have to make retirement plans that we do not face whit hardest situation in thefuture. Retirement plan: A savings and investment plan that provides income during retirement.retirement plan - a plan for setting aside money to be spent after retirement. Retirement planning,in a financial context, refers to the allocation of savings or revenue for retirement. The goal ofretirement planning is to achieve financial independence. Importance of Planning for Retirement:There are two components to retirement income planning: Personal Planning and FinancialPlanning. Personal planning is important because it is the determining factor of your satisfactionwith your retirement lifestyle. Financial planning is crucial because it identifies your sources ofincome and expenses and establishes your retirement budget, based on your personal plan.Personal PlanningAll too often people entering retirement do not place enough emphasis on personal planning toensure they maximize their opportunities. So take the time now -- at an early stage in yourplanning process -- to think about the choices you have about how you would like to spend yourtime during retirement. Do you want to volunteer at a local hospital? Take up that hobby youwere always interested in, but never had the time to start? Go back to school and pick up a fewspecial interest courses? Start your own business? Travel around the world? Buy property in awarmer climate and spend the winter months there? These, and many other lifestyle questionsbased on your preferences, are all important factors to consider when planning your retirementsince your choices will drive the financial circumstances that must be meet in order to achieveyour goals.Financial PlanningWill you have adequate funds to provide the kind of retirement lifestyle you envision?Remember your income will likely come from three general sources: government pensions,employment-related sources and your own personal investments. Your retirement will be moreenjoyable if your income is structured to fit your lifestyle choices and if you have developed aretirement plan to protect the assets you have worked hard to acquire.Follow these foolproof steps to retirement income planning:1.Identify & compare your income and expenses to determine any shortfalls or surpluses.