What is one consequence of not planning for retirement?

Failing to plan for retirement can lead to potential financial struggles in later years, as individuals may find themselves without adequate savings or income to support their desired lifestyle once they retire. This lack of preparation can result in a reliance on Social Security benefits, which often fall short of covering all living expenses, thereby forcing many retirees to drastically alter their spending habits or continue working longer than they anticipated.

On the other hand, not managing a retirement plan can lead to missed investment opportunities that could have grown wealth over time, while also affecting credit ratings and personal asset enhancement positively. Therefore, planning for retirement is crucial to ensure financial stability and security in one's later years.