After a lifetime focused on achievement and accumulation, many retirees struggle with the transition to retirement. Read on to learn how embracing an abundance mindset can help you get more out of life before and after retirement.
Understanding scarcity
In his book Scarcity Brain, Michael Easter discusses how human evolution hardwired our brains for scarcity.
Throughout history, humans lived in a world where food, information, status, money, and material possessions were scarce. In that world, people who accumulated more had a survival advantage. Our modern world, on the other hand, is one of excess and abundance—yet turning off that scarcity brain is a challenge.
Our entire economic system is built on the concept of scarcity. A scarcity mindset leads our brains to default to the assumption that more makes everything better. No matter how much we have, we continue to accumulate. Smart marketers have figured out how to exploit this, leading us to never be satisfied with what we have.
So how does this impact retirement?
Believing we’ll never have enough causes many people to delay retirement out of fear that they’ll be unable to maintain their lifestyle. For those who do retire, the shift from saving to spending can be difficult.
Transitioning from saving to spending
I recently met up with a friend who was one of my first coaching clients. She retired a few months before I left my full-time career. One of the things we discussed was the difficulty of making the shift from saving to spending.
When we’re working, our regular paycheque offers security. When we no longer have that stable income, we worry about overspending and running out of money. That’s scarcity brain at work.
In Scarcity Brain, Easter tells us the scarcity mindset in the modern world pushes us toward short-term comforts at the expense of long-term rewards, growth and meaning. Interestingly, for retirees, that scarcity mindset leads many people to spend less because seeing our savings grow provides that short-term comfort.
Retirement is an opportunity to live a life in alignment with our values. We need to manage money carefully, but shifting to an abundance mindset—combined with a sound financial plan—can help overcome that fear of running out of money. At this stage of life, many of us place less importance on physical possessions, realizing that retirement is a time of abundance in areas that matter more, including:
- Time. After a lifetime of struggling to fit everything in, we now have the time to do things that make us happy.
- Growth and learning. During our working lives, learning and growth are mostly career oriented. Now, we have the luxury of learning for pleasure and focusing on things that interest us.
- Social. With more time and energy to invest in existing and new relationships, this can be a time of deep connection.
Shifting to an abundance mindset
Easter suggests we can rewire our scarcity brain by substituting a better, more productive behaviour for a problematic habit. Here are four ways to cultivate an abundance mindset in retirement.
Adopt a gratitude practice
A gratitude practice is a powerful thing. There’s no better way to shift your perspective than by being grateful for what you have.
Take 10 minutes to make a list of things you are grateful for. Then, add to your list every day. Post the list where you’ll see it often.
Experience the wonder
Children have a natural ability to express awe and wonder about so many things. As we age, we lose that sense of wonder.
Make a habit of slowing down and taking time to appreciate the wonder in simple things. You might find some new items for your gratitude list.
Focus on giving
Giving takes many forms, and there’s science demonstrating the helper’s high you get from giving is good for your wellbeing.
Donate to causes that resonate with you. Give of your time if you don’t have financial resources. Be generous with compliments and kind words. It all adds up.
Reap the benefits of subtraction
A scarcity brain looks at addition as the solution to any problem. Retirement is the perfect time to rewire that thing by shifting from addition to subtraction.
Take this opportunity to let go of possessions, habits, activities, and relationships that no longer serve you. This will free up time to focus on things that align with your values.
Over time, I’ve found that an abundance mindset has helped me live more intentionally and be satisfied with having just enough, instead of constantly striving for more. This mindset shift is one of the keys to a happier and more peaceful life. It’s a simple message you’ll never see on any marketing billboard, but it’s worth writing on a sticky note to look at every day as a reminder. “I have enough.”
Are you ready to embrace the benefits of an abundance mindset? Contact me to get started on a plan for your ideal retirement.
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