What is the primary goal of retirement savings?

The primary goal of retirement savings is to ensure financial stability in retirement. As individuals transition from their working years to retirement, having sufficient savings becomes crucial for maintaining a desired standard of living and covering essential expenses such as housing, healthcare, and day-to-day living costs. Retirement savings help individuals depend less on social security or pensions, which may not fully cover their needs, allowing for a more secure and fulfilling retirement.

In contrast to this goal, accumulating wealth over a lifetime can be part of one's financial plans but is not exclusively focused on the needs of retirement. Affording luxury items may be desirable but does not specifically address the fundamental purpose of retirement savings, which is to support ongoing financial needs once earned income ceases. Likewise, providing financial support for dependents is often a separate financial obligation and may not directly contribute to an individual's own retirement security. Thus, focusing on ensuring financial stability in retirement aligns directly with the core purpose of retirement savings.