6 reasons why having the right mindset is the key to a successful retirement

Financial planning is very much about ensuring that you can enjoy a long and happy retirement free from money worries.

Alongside building sufficient wealth to provide you with an income after you stop earning, it’s also important to consider other factors that will affect your post-retirement lifestyle.

Many articles on this topic tend to cover the same points when it comes to living a successful and fruitful life. These will include staying active, finding hobbies, and keeping fit.

While those are certainly very valid – and I’d recommend them myself – I always think that there’s a psychological side to retirement that can often be just as important as the physical aspects.

To that end, here are six ways you can ensure you have the right mindset to fulfil your goal of a successful and enjoyable retirement.

1. Accept that getting old is inevitable

It’s easy, and often all too common, to “rage against the dying of the light” and resent the fact you are getting older.

In reality, while there are some steps you can take to enhance your chances of living longer, there’s nothing you can do to reverse the aging process.

Because of that, it’s important not to dwell on the limited time you have left, but to accept – and even enjoy – the fact you’re getting older.

It’s far better for your peace of mind and wellbeing to focus on what you can control and make the most of the time you have left.

2. Recognise the importance of finding a new purpose

Work is likely to have been a key part of your life, and not just from a financial perspective.

At least a third of your week will probably have been spent either working or travelling to and from your workplace. Because of this, you may well have spent more time during the week with your co-workers than your family.

It will also have provided you with a ready-made network of people to interact with on a daily basis. Perhaps most importantly, your job will have helped you define who you are in terms of position, performance, and status.

Therefore, it’s crucial to prepare for life without these elements to avoid a loss of confidence or purpose.

You’ll need to develop new routines and a different mindset to motivate yourself, as well as to stay active.

3. Put your experience to good use

After 40 years as an adult, you’re likely to have built up quite a store of lived experience – often referred to in business as “corporate knowledge”.

Clearly, there’s a fine line between being the old bore who reckons they know it all and the wise friend whose valuable advice is sought and welcomed. You’ll want to aspire to the latter.

Adopting a generous mindset and sharing your experience can help boost your self-esteem. You’ll be able to take real pride in the fact that you are giving something back to your local community.

4. Balance the need to pace yourself while filling your time

As you get into your 60s, it’s easy to get frustrated at your inability to live your life at the same pace that you did in your 30s and 40s.

To avoid this frustration becoming too much of a burden or even leading to depression, it’s important to adopt a balanced mindset. Find equilibrium between being as active as you can be, both physically and mentally, while setting aside time to relax and unwind.

One important point to keep in mind is that if you do overextend yourself, you have the time to recover. You can relish the fact that if you do overdo it, you don’t have to get up and go to work the next morning as you used to!

5. Protect your health in your 50s and beyond

An important consideration – which can support the plans you have for life after work – is to start looking after your health before you retire.

Staying fit is essential to enjoying your retirement and has a long-term impact on your quality of life.

You may not have worried too much about your health, and recovery from illness and injury, when you were in your 40s. But developing healthy routines and behaviours now can really pay dividends once you are no longer working.

6. Think about your legacy to ensure you have no regrets

When it comes to enjoying your retirement years, there may well be physical and financial limitations to what you are actually able to get done.

However, by starting in the frame of mind that you want to have as few regrets as possible, you’ll give yourself the best chance of avoiding too many “I wish I’d done that” thoughts.

This thinking should go beyond the items on your bucket list, to include relationships with friends and family.

As you’re thinking about the life you want to live in your retirement, it’s also important to give some consideration to your legacy, and about how you want to be remembered.

Together, we can address the financial and tax-planning angles of your inheritance. In addition, you should give some consideration to the non-tangible aspects of what you leave, in terms of the knowledge you pass on and how you want to be remembered by friends and family.

 Get in touch

If you would like to talk about your own retirement plans or any of the issues raised in this article, please get in touch.

You can call me on 07769 156 250.

Please note

This blog is for general information only and does not constitute advice. The information is aimed at retail clients only.

Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.

The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.

Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.