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Financial planning is as important after retirement as it is before retirement, says Jerome S. Golden, president of the income management group at New York's Equitable Life Assurance Society.

"A lot of retirees don't have a plan and basically don't plan to have a plan," says Golden. "And that's their biggest mistake."

Consider the fact that today's median age for retirement is 62.

"For a couple both age 62, there's a 50 percent chance that one or both will be alive in 30 years," says Golden.

"You have a very long period of time during which you have to deal with your resources and, obviously, the potential for some medical problem occurring during that time."

The first challenge for retirees is not to outlive their retirement assets, whether from Social Security, a defined benefit pension plan and, increasingly, personal assets to fund retirement.

The second concern is the ability to cope with medical problems after retirement, including the possibility of long-term care.

Kevin Holland, a financial planner, CPA and member of the International Association of Financial Planners, notes that for some retirees, the fear of outliving their money can have an unintended effect.

"They're very concerned once in retirement about how much they spend, yet for some people, they have plenty of money and are actually shortchanging their enjoyment of life by not spending enough," says Holland.

The way to learn if you have plenty of money to last throughout your retirement is to perform projections "with very reasonable assumptions, based on the rate of return on assets they have, using very conservative inflation rates, and even building in a cushion so you can actually incorporate cost for long-term care," says Holland.

Atlanta's International Association for Financial Planning offers five key steps in post-retirement planning:

*Maintain a household budget that accurately charts your cash flow. Include all sources of income, as well as living expenses.

"Many financial experts agree you'll need an average of 60 to 70 percent of your annual pre-retirement income to maintain your current lifestyle in retirement," says the IAFP.

*Re-evaluate how you plan to use your investments to see if changes are needed. Short-term investments, such as CDs, government bonds, money market funds and savings accounts, are good bets if you need the funds within two or three years. Long-term investments, including equities and growth mutual funds, are good when you won't need the funds for five years or more.

"Even in retirement, it's important to invest a portion of your money for growth to protect yourself from the effects inflation and taxes can have on interest income," reports the IAFP.

*Analyze your estate plan periodically to ensure that it's up to date.

*Review your life, medical and property insurance policies.

*Establish a durable power of attorney in case you become incapacitated.

"Many American seniors are overpaying on a variety of forms of insurance and taxes," says Steven Scott, a financial planner affiliated with Associated Planners Investment Advisory Inc., an investment advisory institution for independent financial planners, in Irvine.

As for taxes, just $1 of earnings can change your tax bracket, notes Scott.

"It is also common for senior adults not to use investment vehicles that will exempt, defer or give tax credits. To make the most of every dollar invested, it is critical you choose vehicles that satisfy the three criteria."

A lifetime annuity purchase from an insurance company is one product that provides income you cannot outlive.

"It basically shifts the risk of outliving assets to a third party," says Golden.

Another possible source of income for retirees is the reverse mortgage, wherein a retiree's home is essentially fully or partially assigned to a lender who will pay the retiree a lifetime income while still living in the home. The home is collateral and becomes fully or partially owned by the lender upon the retiree's death.

If you need some financial planning help, get "Facts About Financial Planners" from the American Association of Retired Persons, 601 E. St., N.W., Washington, DC 20049.