Mark is a former colleague who works for a company that supplies technology solutions. Recently, he was promoted into a new executive role – from a regional role to a national one. It comes with a lot of additional responsibility and a big jump in compensation.

With 15-20 working years ahead of him, he’s used this as an opportunity to ‘step up’ in the world. A new SUV followed his promotion along with a lake cottage just a few months later. His perceived status is rising along with his spending.

I’m not against enjoying what we’ve worked for, but with less than a decade before I phase down in my career, my thinking is different than his and continues to evolve. I’m filling up the coffers as best as I can for the cleverly named ‘decumulation’ phase of my life. That is, much less income and a shift towards spending down assets rather than adding to them.

Here are some other shifts in thinking you may want to consider:

Consider paying off debt to reduce financial stress and free up resources for retirement needs. Focus on building a sustainable income stream by maximizing Social Security benefits and other income sources and developing a thoughtful withdrawal strategy for your retirement accounts.

Plan for the future by reassessing your budget. Factor in potential changes in healthcare costs, travel plans, and your desired lifestyle, aligning your spending accordingly. Proactive planning for healthcare is especially key. Get help in choosing the right Medicare plan to ensure adequate coverage and explore long-term care insurance options for financial security.

Embrace the lifestyle transition by reprioritizing spending towards activities and experiences you enjoy. Downsizing your living space can reduce costs and free up resources for other pursuits. Explore new hobbies, volunteer, and reconnect with loved ones to enrich your life.

In his book, “The Psychology of Money,” Morgan Housel wrote:

“The world is filled with people who look modest but are actually wealthy and people who look rich who live at the razor’s edge of insolvency. Keep this in mind when quickly judging others’ success and setting your own goals.”

Perhaps a real shift in your thinking is the very first step in a phased retirement?