This Way of Thinking is Creating a Retirement Crisis for Women

This Way of Thinking is Creating a Retirement Crisis for Women

How a fundamental shift in the way you view the world could be the answer to your retirement woes

All the baby boomer ladies out there, can we do some real talk for a second? You're in a world of hurt when it comes to retirement. As Casey Dowd writes for FOX Business, "According to research two-thirds of women (63%) say they have no savings or less than $10,000 in retirement savings, compared with just over half (52%) of men."

There, we've owned it. Now can we own something else? Most of the advice out there for you on how to deal with this serious crisis is a bunch of baloney.

Take this bit of advice from Lule Demmissie, managing director of investment guidance at TD Ameritrade on why many boomer women are working well into retirement:

Collecting paychecks into retirement has plenty of pluses. But it also can cost money-in work-related expenses, lost Social Security benefits and added taxes. Another thing to keep in mind, is working can possibly put you into a higher tax bracket in retirement, so I recommend talking to a financial professional who can help you crunch the numbers.

This is the fundamental problem with most retirement advice. It presupposes that you need to be poorer in retirement, not richer. It's a shame that most people have to worry about making too much money in retirement, and it's telling of the difference between two fundamentally opposed mindsets.

The scarcity mindset

Robert's rich dad would say, "There are two kinds of money problems. Not enough money, and too much money. Which type of money problem do you want?"

For those with the scarcity mindset, there is never enough money. But even worse, come retirement time, too much money becomes a real problem because they are afraid of all the forces, like taxes, that take that money.

The scarcity mindset is so worried about having enough that they don't see the opportunity to make more.

The scarcity mindset lives in constant fear that cripples innovation.

The scarcity mindset keeps you poor.

The abundance mindset

Those with an abundance mindset see the world in a completely different way. They look at the problem of too much money as a good problem, not a bad one that should be avoided.

As with all problems, the problem of too much money does need a solution. But with the optimism that comes from an abundance mindset, you can find creative ways to leverage too much money, such as investing in investments or starting a business that defrays tax costs.

There is a cost to the abundance mindset-your time. Rather than spend your off hours doing things like watching TV or shopping, you spend them thinking creatively about money and pursuing interesting things that can make you money. Some turn hobbies into an income stream. Others make their business or investing a hobby. When they spend time with friends, they do so with people who think like them, often dreaming about what can be rather than complaining about what is.

Those with an abundant mindset live a fundamentally different, and I would say more rewarding, life.

How do you want to live?

I don't have the answer to how to fix your retirement woes. That's up to you. But what I do know is that viewing the world with a scarcity mindset will never get you there.

But ultimately, how you want to live is up to you. For many the scarcity mindset is comfortable, and changing the way you view the world is admittedly scary and hard. But I can promise you it's worth it.

Just remember, a different tomorrow starts with a different today.

Original publish date: May 19, 2016