Our mindset is shaped by our beliefs and it affects how we think and behave. Having the right retirement mindset is important prior to leaving the workforce behind.

This requires careful thought, planning and execution of one’s retirement goals. Planning for retirement is more than just having a substantial financial nest egg. Are you prepared for lifestyle changes? Managing your emotions during different phases of life is as important as managing your money. You may spend 20 years or more in retirement. What will your new life look like? Have you designed it or will it be lived by default?

Your plans for retirement should be written down, as having plans in writing is a first step in putting your plans in motion as you move towards its execution. First, do you have a personal profile? Does your profile address your retirement goals, your dreams? As long as you are alive you should not stop dreaming. Keep your mind engaged and be an active participant in every phase of life. It’s good for your health in having an active life in retirement. Volunteerism, travel, freelancing, new hobbies are just some of the activities to look forward to in retirement.

How prepared are you, from being a lifelong saver and investor, to enjoying spending from what you have earned, when the retirement years dawn? When the pay cheques stop and the bills keep coming, it’s time to live the life you dreamed or planned for from your retirement nest egg. It was created to provide lifetime income, but are you emotionally prepared to enjoy your retirement years? The challenge is transitioning from the workforce and a life of savings and wealth accumulation to a life in retirement that focuses on wealth preservation and distribution. Wealth accumulation is a disciplined and planned process of accumulating assets to meet financial goals. In retirement, preservation and distribution of financial assets are essential in enjoying the rewards of one’s labour and living a stress-free life.

Some retirees are accustomed to having salary deductions or automated savings in place during their working life. Now that they are in retirement investing requires more effort and a transition to active investing. Investment options need to be reviewed. The nest egg has to cover insurance and emergency needs and continuous long-term investment. Every retiree needs an investment strategy that is tailored to meet their specific goals.

There was a time when individuals would retire and never return to the workforce. But time has changed. These days, there are many retirement options. Early retirement is the desire of many but may not be suited for everyone. Some individuals opt to retire then return to the workforce while others remain employed for life. This mindset is quite flexible but for you to be successful, careful planning is a pre-requisite. There is no substitute for planning. One study indicated that retirement is no longer viewed as the end of one’s working life but a new beginning. This new mindset will determine how people save for retirement. A survey done by the Empower Institute revealed that more than 80 per cent of pre-retirees reported that they will live their best lives in retirement. They intend to save more during their working lives, so they can enjoy their retirement years. Eighty-one per cent of pre-retirees interviewed believe there will be more job opportunities available during retirement.

Due to the flexible mindset, more employees are planning their retirement earlier than in the past. The earlier workers plan for retirement the better it is, as plans can be adjusted or tweaked, based on prevailing situations. Planning earlier is to be desired than retiring early. It’s quite unwise to retire early without a retirement plan in place. The earlier planning begins, the more likely it is that pre-retirees or working adults will achieve their retirement goals. As author Stephen Covey says, “Begin with the end in mind.”

Have you calculated the future value of your current income? Do you know how much money you need to have in retirement? How much do you need to save or invest to reach your goals? What’s your retirement mindset? Utilising the services of a financial advisor who is a specialist in retirement planning can pave the way for financial success and peace of mind during retirement. In the same manner that medical specialists are consulted by their patients, especially as they get older, specialist financial advisors should also be consulted for a check-up on the retiree’s financial health.

Grace G McLean is financial advisor at BPM Financial Limited. Contact her gmclean@bpmfinancial. and visit the website: www.bpmfinancial.com. She is also a podcaster for Living Above Self. E-mail her at livingaboveself@gmail.com