This article is part of the Biblically-Informed Framework for Retirement Stewardship (BIFRS) series. It was initially published in August of 2023 but was updated in 2026.
I recently had the opportunity to lead a seminar on a Christian’s retirement at a church in our denomination. It’s a large church with a sizeable number of older folks. The seminar wasn’t only about the financial aspects (it was one of three sessions), but a study on retirees’ financial conditions that I used to frame the financial discussion was helpful, so I thought I’d share it here, along with some of those thoughts.
But before we get into it, do you notice a familiar song lyric reference in the article title (which also happens to be the title of a chapter in my Redeeming Retirement book)? Do you remember the song name, the rock band, and the singer who made it famous? (Answer: Kenny Rogers and the First Edition). Rogers and his band recorded it in 1968. They had a second hit single that same year (“You Know I Love You”), and then a year later, “Ruby Don’t Take Your Love to Town” went up the charts. Kenny passed away in 2020, but his music lives on.
Financial planners like to discuss two life phases: the “accumulation phase” and the “decumulation phase.” (Have you noticed that almost no one ever uses the word “decumulate”? Maybe “spending” works better.)
In the “accumulation phase” before retirement, the focus is on saving, spending, giving, and investing wisely with the resources God has entrusted to us. Practicing wise stewardship means that we work to meet our family’s immediate needs (1 Tim. 5:8) while also making provision for future needs (Prov. 6:6-8, Prov. 21:20) and especially generosity (2 Cor. 9:6-8).
And, of course, we do all this while placing our ultimate hope and trust in God for our daily provision, now and in the future (Phil. 4:19).
You may see the paradox here regarding our responsibility to plan and act and God’s promise to care for us providentially. As with many things taught in Scripture, it’s not either-or but both-and.
The Bible instructs us, on the one hand, to wisely steward God’s resources while placing our ultimate hope and trust in him for our daily provision. It contains numerous proverbs about saving for the future (e.g., Prov. 6:6-8; Prov. 21:20). They’re not commands but biblical wisdom that applies to our modern context because even if you want to work for pay for as long as you live, there will practically be a day when you can no longer do so.
Money is essential, but it isn’t the most important thing. Still, to live in this world, in most societies, it’s right up there on the “gotta have some,” kinda like air. The wise steward views money as a resource, a means to an end, not an end in itself. And as Christians, we know that our true worth isn’t our net worth; it lies in being rich toward God (Luke 12:21).
In retirement, we enter the “decumulation” phase, which means spending down our assets (and sometimes hauling stuff off to Goodwill or the Salvation Army). The goal is to maintain a reasonable standard of living by combining various income sources, including any retirement savings we have. Regardless, we want to wisely use whatever we have to provide for our families and live a life that honors and glorifies God.
Some will have more resources, and some less, when they get to retirement. As we’ll see, there is a wide range in retirees’ savings and income profiles.
Five financial profiles of retirees
This graphic illustrates five different financial profiles of retirees based on expenses and available income sources. It’s from research by the Employee Benefit Research Institute (EBRI) that identified these five distinct financial profiles among retirees aged 62 to 75 with total financial assets under $1 million. This represents about 90% of all retirees in the U.S. It’s a diverse group with a lot of variation in things like assets, types and amount of income, debt, health, homeownership, marital status, and gender.
First and foremost, we see that most retirees aren’t “wealthy” by most definitions. Financial professionals typically consider “high-net-worth” households to be those with liquid assets (excluding home equity) of between $1 million and $5 million. Even the “affluent” group (19%) falls short of that standard. Many retire with much less and live on a very tight budget.
The inflation surge of 2022-2024 hit these groups differently. Those with fixed pensions or limited Social Security saw their purchasing power erode significantly, while those with diversified portfolios and flexible spending had greater capacity to adjust. By 2025, inflation has moderated, but prices remain elevated compared to pre-pandemic levels, affecting especially those in the “struggling” and “just getting by” categories.
Average retirees (29%)
“Average Retirees” usually have more modest financial assets than those with an affluent or comfortable profile ($100K or less) and incomes between $40,000 to $100,000 annually. Most of them rely on Social Security and pension plans (which are quickly going the way of the dinosaurs), but credit card debt seems to follow them like a relative who won’t leave, to use one of Dave Ramsey’s favorite metaphors.
However, in terms of overall satisfaction, they rate their retirement satisfaction level relatively high at 7.8 out of 10.
For many in this group, the challenge isn’t catastrophic—it’s managing the monthly cash flow carefully and avoiding financial surprises that could tip the balance. A major car repair or unexpected medical bill can create real stress.
Comfortable retirees (22%)
The “Comfortable Retirees” aren’t drowning in money, but they’re doing all right. They have a moderate income, similar to the Average Retirees, with financial assets between $100K and $300K. They’re a mix of homeowners and mortgage payers. This group tends to have diverse sources of income, relying on workplace retirement savings plans (like 401(k)s) and Social Security, and some also have a pension. They may carry credit card and auto loan debt, but it’s mostly manageable.
Their overall satisfaction score is just a tad lower than that of the Affluent Retirees, at 8.0 out of 10.
This group has some breathing room in its budget. They can handle occasional splurges or help adult children in a pinch, but they still need to be mindful about major expenditures and maintain reasonable discipline with their spending.
Affluent retirees (19%)
These retirees have more financial assets than the average and comfortable groups ($300K or more, up to $1 million) and incomes of over $100,000. They’re mostly mortgage-free homeowners and debt-free. They also tend to have multiple sources of income, with Social Security, pensions, and personal savings being the most common. Credit cards and auto loans are a rarity for this bunch.
Unsurprisingly, they are the most satisfied with their retirement lives among all groups, at 8.2 out of 10.
This group has the greatest flexibility in retirement. They can be generous with family and church, pursue travel or hobbies without constant financial anxiety, and generally weather unexpected expenses without major lifestyle adjustments.
Some comments on these three groups
If you fall into one of these three categories—about 70% of those in the study—be humble and grateful. You can probably direct more of your savings towards discretionary spending and generous giving, using it for your good and the good of others with a grateful and cheerful heart (2 Cor. 9:7).
Remember, possessing wealth is not inherently wrong, but the Bible repeatedly warns us against idolizing it. First Timothy 6:17 says we shouldn’t put our hope in wealth, which is uncertain, but instead in God, who provides us with everything we need.
Still, caution is warranted, since you can’t just cut loose and “let the good times roll,” as you may be constrained if you rely on savings for a significant portion of your retirement income. In other words, you can’t spend whatever you want whenever you want and be assured you can cover your expenses for the rest of your life.
Plus, there are many risks to consider in retirement, and I’ve discussed them in other articles. Healthcare costs continue to rise faster than overall inflation, and long-term care remains a significant concern for which few have adequately planned. The SECURE 2.0 Act provisions have expanded retirement savings options and increased RMD ages, which help some but don’t fundamentally change the need for careful stewardship.
“Just-getting-by” retirees (12%)
These retirees are similar to the struggling ones but generally own their homes and have less debt. They believe they’ve saved enough for retirement—at least half of them do; the others are hopeful but not too confident. They have modest financial assets and income. Social Security is their primary source of income, but personal savings and, for some, pension plans help keep their financial ship afloat. They’re frugal spenders, which helps a lot, but housing (especially maintenance, property taxes, and utilities) takes up a big chunk of their budget. On average, they rated their retirement life satisfaction at 7.2 out of 10.
For this group, budgeting isn’t optional—it’s essential. Every dollar has a job, and unexpected expenses require creative solutions or difficult choices. Yet many in this category report reasonable satisfaction, often because they’ve learned contentment and found joy in relationships and service rather than material comforts.
Struggling retirees (18%)
Next are the Struggling Retirees (18%). It can be tough for this group due to their financial challenges. Their financial assets are low (less than $100K), and their income is below $40,000, barely making ends meet. They’re more likely to be renters, and debt, especially credit card and medical bills, is their constant companion and sometimes unmanageable. Social Security is their primary source of income and accounts for a larger share of their total income than for other groups. Not surprisingly, their average satisfaction score was the lowest, 5.8 out of 10.
This group faces real hardship. The inflation of 2022-2024 hit especially hard for those on fixed incomes. Rising costs for food, utilities, and healthcare create constant stress. Many are one emergency away from crisis. For this group, community support—from family, friends, and especially the church—becomes critically important.
More comments on these two groups
These two groups combined account for about 30% of all retirees with assets under $1 million, which is a pretty large share. As shown by their satisfaction scores, having little retirement income besides Social Security can be very challenging.
According to recent data, approximately 40% of retirees rely heavily on Social Security as their primary source of income. Social Security typically replaces about 40% of pre-retirement income for average earners, though the replacement rate is lower for higher earners and higher for lower earners. The full retirement age has reached 67 for anyone born in 1960 or later, and while there have been concerns about the Social Security trust fund’s long-term sustainability, benefits are not expected to be cut for current retirees or those near retirement.
Recent studies show that the median retirement account balance for those approaching retirement (ages 56-61) remains around $180,000-$200,000, while the average is closer to $280,000. This gap between median and average reflects the reality that some people have saved substantially while many others have very little. Divide these amounts by 25 or 30 years of retirement, and you see the challenge many face.
Many will still be okay, but it’s usually because they have a pension or home equity they can tap if needed. There are lots of reasons for inadequate savings. It’s usually not that folks think saving is unimportant; more immediate financial issues or concerns get in the way. Student loans, healthcare costs, caring for aging parents, helping adult children—life happens. And, of course, some Christians intentionally save less and sacrificially give more, which is totally acceptable based on biblical teachings as long as they also provide for their families.
Something I found interesting about the study was that the average retirement “satisfaction rating” for those in the “struggling” and “just getting by” groups was 6.6 on a scale of 1 to 10, while it was about 8.0 for the other three groups. Although it’s lower, it’s not as large a gap as I would have expected. Despite a sizable difference in assets and income, it seems that having a “satisfying” life in retirement isn’t just about money (duh!).
This speaks to a profound truth: while money certainly matters and financial stress is real, contentment and joy aren’t solely determined by net worth. Christians, especially, can experience deep satisfaction even with modest means when we understand that our identity and purpose come from Christ rather than our financial condition.
Living faithfully in your financial condition
Hopefully, if your finances are challenging, you can reach a point where you believe it’s perfectly fine and acceptable to live a “smaller” life in retirement. Not small in productivity and enjoyment, or love, joy, kindness, and generosity toward others, but relative to how much money it takes to pay the bills, be content, and live happily. As 1 Timothy 6:6 reminds us, “Godliness with contentment is great gain.” With contentment, you can live each day to the fullest, with a generous heart and life.
To be sure, if you have barely enough to cover your monthly bills, you have to be extremely careful about how you spend your money. Any spending that does not serve a critical purpose has to be eliminated. It’s good that money is easily quantified, and we can see precisely how much we have—it lends itself to careful budgeting and spending.
I’m not suggesting that watching your spending will make all your financial struggles disappear. If you’re struggling or barely getting by, you’ll need to decide the most responsible way to serve Jesus in your situation and work on trusting God’s promises to meet all your needs.
You can also seek out family, friends, and church leaders who can help. The body of Christ is meant to care for one another, and there’s no shame in accepting help when it’s genuinely needed. Also, remember that there can be challenges no matter what your situation. While those struggling or barely surviving can be tempted by fear or hopelessness, those in a comfortable or affluent situation may be tempted to feel self-sufficient. And greed can rear its ugly head anywhere, anytime.
A stewardship perspective on all five groups
Regardless of which financial profile describes your situation, the fundamental calling remains the same: faithful stewardship of whatever God has entrusted to you. The affluent retiree with $800,000 and the struggling retiree with $40,000 are both called to steward their resources wisely, live generously within their means, and find their ultimate security in God rather than their portfolio.
Your financial condition affects what stewardship looks like practically, but it doesn’t change the core principle. The widow with her two small coins (Mark 12:41-44) demonstrated more faithful stewardship than the wealthy who gave large amounts but didn’t sacrifice. It’s not about the amount—it’s about the heart and the faithfulness.
For those in the affluent, comfortable, or average categories, your stewardship challenge is often to resist the pull toward accumulation for its own sake and to remain generous. For those just getting by or struggling, your challenge is to resist despair or bitterness and to trust God’s provision while managing carefully what you have.
In every financial condition, we’re called to “do good, to be rich in good works, to be generous and ready to share” (1 Timothy 6:18). The scale changes, but the calling doesn’t.
Get more help
If you’re in the “Struggling” or “Just Getting By” categories or are hoping to retire one day and are concerned that you might not be as well-prepared as you’d like, consider picking up my book, Redeeming Retirement: A Practical Guide to Catch Up.