In terms of personal finance, what is the primary purpose of retirement savings?

The primary purpose of retirement savings is to ensure financial security during retirement. This involves setting aside funds during one's working years that can be drawn upon when an individual stops working or has reduced income in retirement. It allows individuals to maintain their desired lifestyle, cover essential expenses, and manage health care costs without relying solely on government assistance or other income sources.

Having a well-planned retirement savings strategy helps to accumulate wealth over time, taking advantage of compounding interest and investment growth, which can provide a safety net for unforeseen expenses or changes in living situations often faced in retirement. This financial security is crucial for enjoying retirement years without the stress of financial hardship.