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When looking towards retirement many people just think about the joy of not having to work anymore. Unfortunately, even though a person retires they still have bills to pay. The need for careful planning is perhaps the most overlooked part of retirement. Having a set plan in place before retirement will help to ensure the golden years are golden.

The following list gives some great points on how to plan for retirement.

1. Save money. Before retirement setting up a savings account or 401K will get a person prepared for life without a steady paycheck. A 401K is usually sponsored through an employer where the employer matches contributions the employee makes. Money put into a 401K also goes untaxed which can mean immediate savings. IRA's are also another way to save for retirement. These accounts are also not taxed.

2. Determine your expenses after retirement. A person should have a fairly good idea what monthly expenses they expect to have after retirement. Having a rough idea will help a person determine how much they need to save to be able to make it. Then considerations also need to be made for special purchases like cars and trips.

3. Working after retirement. Many people chose to take on a part-time position after retiring. Most often it is to supplement their income, but for others it is a way to socialize and gives them something to do with all the spare time they now have. If a person is not planning on working anymore at all then they should have some idea what they do want to do with their time. Many retirees find that retirement can be boring after years spent in the work force.

These three points will give a person something to think about when planning for retirement. Getting a good financial plan is the first step. It is also important to consider what life will really be like once the daily work schedule is gone.