Originally published March 2017. Updated January 2026 with Biblical Framework connections and current statistics.
This article, the third in a series, focuses on individuals in their 40s and 50s. If you’re younger than that, you may want to review the first two installments: what to do if you’re in your 20s and 30s or your 30s and 40s.
Understanding where this fits in the biblical framework
The Biblical Framework for Retirement Stewardship rests on three foundational principles:
Self-Sustaining Principle: Planning wisely so you don’t burden family, church, or society with expenses you could have prepared for.
Caregiving Principle: Preparing to both give care (to aging parents) and eventually receive care yourself.
Ministry Principle: Continuing to bear fruit and serve God’s purposes in every season of life.
This article focuses on the Self-Sustaining Principle—specifically, assessing whether you’re on track financially and making course corrections if needed. Your 40s and 50s are also critical for the Caregiving Principle: Your parents may need care soon or already do, and you should strongly consider long-term care insurance for yourself while you’re still healthy and rates are reasonable. Regarding the Ministry Principle, this is when you can begin envisioning what purposeful retirement might look like—what God might be calling you to do when freed from full-time employment. For the complete framework, see Biblical Framework for Retirement Stewardship.
Now let’s focus on the critical task of checking your retirement readiness.
The critical decade before retirement
The ten or twenty years before retirement are a critical time. These may be your peak earning years, but they can also be a time of much higher expenses. Factors such as a child’s college expenses and care for aging parents may now be part of your spending equation.
Many people in this stage of life are becoming more conscious of the need to plan for retirement. Hopefully, as discussed in the last article, you’ve reduced or eliminated your non-mortgage debt and have kept your housing and automobile expenses in check. As your income has risen, you may have increased your giving as well. If that is your goal, a good way to do that is to cap your living expenses once your income reaches a certain level.
Once you’ve got your spending and debts under control and are saving for your future, you need to ensure you’re on track to save for retirement. There is still time to make some course corrections if necessary. If you wait until you’re in your 60s to find out that you’re way behind, you won’t have much time to catch up.
I noted in an earlier article that the average 50-year-old has relatively modest retirement savings. According to more recent data from the Federal Reserve Survey of Consumer Finances (2023), the median retirement savings for ages 55-64 is $185,000—far short of what most financial professionals say is needed. The good news is that if you are 50 years old, you may have 15-20 years before retirement. Even if you have saved very little, you still have a relatively long time to grow your savings.
Determine where you are
Lewis Carroll famously said, “If you don’t know where you are going, any road will get you there.” The main idea, of course, is that you need some idea of a destination, a goal, in planning for retirement. Knowing what you need to do to reach a target also means knowing where you’re starting from. Plus, you need to monitor your progress along the way.
The Bible, in Luke 14:2,8, says, “But don’t begin until you count the cost. For who would begin construction of a building without first calculating the cost to see if there is enough money to finish it?” This verse primarily addresses the cost of discipleship, but as a principle, it is also relevant in this context. If you are saving toward a goal, such as retirement, wouldn’t it be wise to conduct regular assessments to ensure you’re on track? That way, if you’re not, you can make the necessary course corrections.
JP Morgan’s (JPM) 2016 Retirement Guide, which I have referenced in the first two articles, has a handy retirement savings checkpoint guide to help you with just that. For example, the chart assumes that someone making $100,000 will need to replace at least 38% of their income at retirement. That amount, when combined with Social Security, would provide approximately 70% of their pre-retirement income.
According to the chart below, a 50-year-old making $100,000 per year should have approximately $450,000 saved for retirement ($100,000 times 4.5). A 45-year-old earning $60,000 per year would need approximately $144,000 ($60,000 × 2.4). You can run a quick check using your current age and income.
This chart makes some assumptions that may or may not apply to you. For example, in addition to the percentages I alluded to above, it assumes a 6.5 percent pre-retirement return and a 5.0 percent post-retirement return. The 6.5 percent return is consistent with what a balanced (60 percent stocks, 40 percent bonds) portfolio would have returned over the last few decades. However, you may not be able to achieve a 5 percent return in retirement, depending on how conservatively or aggressively you invest and market conditions.
The assumption of 2.25 percent inflation is also fairly accurate historically, but it could be higher, which, along with a lackluster stock market and persistently low interest rates, could significantly reduce your retirement returns.
If you think that Social Security won’t be around when you retire (and it may not be, at least not in its current form), then you will need to increase the multiplier. A simple way to do that would be to double it. You will also have to make adjustments if you think inflation will be much higher than it has historically been.
No matter what, keep in mind that this is not an exact science. We can’t accurately predict our future needs because we don’t know all the factors that will be in place at that time. We can only make informed estimates based on the information we do have.
Your expenses are a wild card
As noted earlier, the chart assumes you will need at least 70 percent of your pre-retirement income. That assumes, of course, that your spending has kept up with your income plus inflation, which may not be the case.
Using the JPM approach, someone who is at retirement age (65) with an income of $100,000 would need $70,000 in retirement (70% of $100,000). According to the chart, at age 65, they would need $940,000 saved to cover 38% of the $70,000, with the rest coming from Social Security. That is a lot of money! At a 4% withdrawal rate, $940,000 would provide an annual income of $37,600. That means they would also need to receive at least $32,400 in combined Social Security benefits per year to reach $70,000.
If they have saved significantly less and have no other sources of income besides Social Security, they may need to continue working past age 65 (which many cannot do) or adjust their spending. Other strategies, such as annuitizing a portion of savings or tapping home equity, are outside the scope of this discussion—but they are relevant and therefore topics for another day.
The reality is that many people will have some flexibility with their spending, especially if they are debt-free (including the mortgage) and have no children living at home. Most retired couples in the U.S. can live on between $3,000 and $10,000/month without significant changes to their overall lifestyle or well-being.
Most will fall somewhere in the low to middle part of that range. In fact, Bureau of Labor Statistics (US Consumer Expenditure Survey) data show that in 2014, total annual expenditures averaged $48,885 for those ages 65 to 74.
Every family is different, so your actual cost of living in retirement will dictate how much income you need, which in turn will determine how much you will need to have saved in addition to what Social Security and a pension may provide. The more you have from “guaranteed” sources such as Social Security, pensions, etc., the less you need in savings.
So, one of the big questions that every retiree will need to answer for themselves is, “how much is enough?” If you aspire to a more luxurious retirement (i.e., lots of travel, dining out, etc.), or want to give a lot away while you’re living, and/or leave a large legacy when you’re gone, you might say that “enough” is on the high end of the range I cited above. If you are very frugal, you can get by with saving much less, especially if you have other sources of income or have retiree health benefits beyond Medicare. If you are fortunate enough to have a pension and Social Security, you may be able to get by with much less than the estimates in the above chart.
Determine what you need to do
Once you get an idea of what you should have saved by now, you can decide what changes you may need to make. If you’re close to the suggested amount, then just keep doing what you’re doing.
If you are far short of the table’s target, at least you now have an idea of how much catching up you need to do. You can still hit your retirement age savings target, or get close to it, but you may have to make some difficult choices: seriously “power save,” or delay retirement and work a while longer, or both. If you’re seriously behind, I suggest you read my series on Behind in Saving for Retirement. It may provide you with hope and encouragement, as well as practical steps you can take to catch up.
As previously noted, if you are a 45-year-old making $60,000/yr. you should have about $144,000 saved. But let’s say you have $80,000 saved for retirement at age 45, rather than the recommended $144,000. The table also indicates that you will need approximately $940,000 by age 65. Therefore, you will need to have saved an additional $860,000 by that time.
That may seem unachievable, and it certainly won’t be easy. Starting with a balance of $80,000, if you can save at least 10 percent of your gross income per month and get a 50 percent employer match on the first 6 percent, and you earn 6 % annually for 20 years, you could have $632,572 by age 65. That is somewhat short of $940,000, but still a very respectable sum. If you can increase your savings to 15 percent, you could have $777,187. The point is that the 20 years between ages 45 and 65 are critical, especially if you are trying to catch up.
To reach the estimated target of $940,000, you would need to save significantly more (over 20 percent). That just won’t be possible for many people. If you come up short, there are things you can do. First, you can take steps to reduce spending significantly in retirement. Another option is to delay retirement until age 68 or later. If you can wait until age 70, all the better. Your Social Security payments (if it’s still around) will also be higher if you don’t claim benefits until age 68 and will be highest at age 70, which would put you in an even better position. You may also have other options, such as part-time work, tapping the equity in your home, or cashing in old life insurance policies.
Beyond financial checkpoints: the other two principles
While checking your financial progress is critical in your 40s and 50s, this life stage demands serious attention to the other principles:
Caregiving principle in your 40s-50s
This is when caregiving becomes urgent:
For your parents: You may already be providing care or will soon. Now is the time to:
- Ensure you understand their wishes, documents, and resources
- Have frank conversations about their long-term care preferences
- Know where their important documents are located
- Understand their financial situation and whether they can afford care
- Coordinate with siblings about care responsibilities
- Research care options in your area or theirs
For yourselves: This is the optimal window to purchase long-term care insurance (typically ages 45-60):
- Premiums are much lower when you’re younger and healthy
- You’re more likely to qualify before health issues arise
- Most claims occur 15-20 years after purchase, making this the sweet spot
- If LTC insurance doesn’t make sense, decide on your alternative plan (family care, self-funding, home equity)
Estate planning: Update documents as children become adults and your assets grow:
- Review and update wills
- Ensure powers of attorney (financial and healthcare) are current
- Consider creating or updating trusts if appropriate
- Name guardians for minor children
- Review beneficiary designations on all accounts
- Create a comprehensive file of account information and contacts
Have “the conversation”: Discuss your own care preferences with your spouse and adult children:
- Where would you want to receive care? (Home, assisted living, nursing home?)
- What are your non-negotiables?
- Who would make decisions if you can’t?
- How do you want end-of-life care handled?
Ministry principle in your 40s-50s
This is when you can begin transitioning focus:
Envision purpose: What does God want you to do in retirement? Don’t wait until age 65 to think about this:
- Start praying about what retirement might look like
- Consider what brings you joy and how your skills could serve others
- Think about what you’ll do WITH retirement, not just what you’ll do IN retirement
- Retirement isn’t an end—it’s a new beginning with new opportunities
Increase capacity: As children leave home, redirect time toward service:
- Take on more significant roles in your church
- Volunteer with ministries or non-profits that align with your values
- Use your professional skills to serve organizations that need them
- Build habits of service that will continue in retirement
Develop skills: Take on volunteer leadership roles that will use your professional skills:
- Serve on boards
- Mentor younger professionals
- Teach or train others
- Use decades of experience to benefit kingdom work
Build relationships: Mentor younger people; these relationships will enrich your retirement years:
- Invest in the next generation
- Share wisdom gained from experience
- Create connections that will continue beyond your working years
- Leave a legacy of faithfulness, not just financial resources
Plan transition: If you want to do missions, non-profit work, or ministry in retirement, start building those connections now:
- Research opportunities that interest you
- Make short-term trips to test interests
- Build relationships with organizations you might serve
- Develop skills you’ll need (language learning, specific training)
- Save specifically for ministry opportunities
Neglecting these principles while obsessing only over your portfolio balance is shortsighted stewardship. Your 40s and 50s are when Caregiving transitions from theoretical to practical, and when Ministry vision must be developed so it can be executed in retirement.
Most importantly, don’t fear
No matter what, don’t let an apparent shortfall cause you to become fearful or discouraged about your future. Our Heavenly Father has promised to supply all our needs according to his riches and glories in Jesus Christ (Philippians 4:19). Yes, you need to do your part by working hard, saving diligently, and investing wisely. You will need to monitor your spending in retirement. But even if you know that you may not be able to retire in the best possible position, you need not fear because God has promised to be faithful to those who hope and trust in Him.
Connecting to the complete framework
This article addressed the Self-Sustaining Principle—specifically, checking whether you’re on track financially and making course corrections if needed. Your 40s and 50s are the last opportunity to significantly improve your retirement readiness through increased saving, but they’re also the critical window to address caregiving needs (LTC insurance, parent care, comprehensive estate planning) and Ministry vision (what will you do in retirement?).
Financial readiness without care preparedness is incomplete planning. And accumulating resources without developing a vision for purposeful service misses the point of biblical stewardship entirely. God doesn’t call us to retire FROM work but TO work of a different kind—deploying a lifetime of accumulated resources for His kingdom purposes.
To understand how these three principles work together to create biblically faithful retirement stewardship, see the complete Biblical Framework for Retirement Stewardship.