Which of the following best describes the main goal of retirement savings?

The primary goal of retirement savings is to maintain a desired standard of living during retirement. This involves setting aside enough funds to cover essential expenses such as housing, food, healthcare, and other daily costs without needing to rely on work income. As individuals transition from their careers to retirement, having a robust savings plan ensures that they can sustain their lifestyle according to their preferences and needs.

While some may think of retirement savings as a means to live extravagantly, the focus of such savings should generally be on security and continuity of lifestyle, rather than luxury. Similarly, creating a safety net for unforeseen events is more aligned with emergency savings rather than specifically with retirement funds, which are intended for planned living expenses post-retirement. Investing in high-risk opportunities for growth does not align with the conservative approach typically needed for retirement funds that aim to provide stability and reliability over the long term. Thus, maintaining a desired standard of living captures the essence of why individuals save for retirement.