What is the purpose of retirement planning in HRM?

The purpose of retirement planning in Human Resource Management focuses on assisting employees in preparing both financially and psychologically for retirement. This involves providing resources, information, and support that enable employees to transition smoothly into retirement. This preparation can include financial education about savings, investments, and pensions, as well as addressing the psychological aspects of leaving the workforce, such as identity changes and lifestyle adjustments.

Effective retirement planning helps ensure that employees feel secure and confident as they approach this significant life change. By offering guidance and planning resources, HRM can help employees make informed decisions that align with their personal goals and financial capabilities, ultimately leading to a more positive retirement experience.

The other options do not encapsulate the comprehensive aim of retirement planning. While helping employees find new jobs might be a relevant support structure for those who retire early, it does not address the primary purpose of preparing them for retirement itself. Encouraging early retirement focuses mainly on workforce management rather than the employee's personal readiness for retirement. Similarly, providing retirement savings accounts is an important aspect of financial preparation, but it is just one part of a broader approach to comprehensive retirement planning.