It’s common for Christians to receive advice cautioning them about saving too much for retirement. Such advice is typically well-meaning and based on legitimate concerns founded on biblical teachings on fear, greed, contentment, and generosity.

However, as with many aspects of the Christian life, our underlying heart motivations are more important than how much we have in our retirement account (2 Cor. 9:7). This is a personal decision that should be made by applying biblical principles to our individual and family situations while closely examining our hearts.

Still, it’s an area where Christians can be confused and conflicted.

On the one hand, we can be tempted to save more than we need and not use our money wisely in the present for what John Piper calls “generosity and immediate-need-meeting.”

In doing so, we may become like the rich fool in Luke Chapter 12, perhaps without realizing it. (I love the idea of setting a savings “finish line,” as the authors of God and Money suggest.)

On the other hand, Christians may save too little, at least in terms of being able to cover their basic living expenses in retirement, possibly becoming an unnecessary burden on others. And the Bible also has something to say about that too.

In our modern American context, I think most of us would be wise to make provisions to financially support ourselves (and our spouses and others who depend on us) beyond a reasonable working age. And that age will vary significantly between one person and another.

To be clear, I’m not endorsing the media-hyped American dream of retirement; I’m simply acknowledging that we should plan to meet our future needs like the ants (Prov. 6:6-8), to be freed up to serve in the Kingdom and for generosity toward others. (I wrote about this in detail in Reimagine Retirement: Planning and Living for the Glory of God.)

The survey says…

I recently acquired a publication titled “The Christian Financial Health Report 2024,” authored by The Institute for Christian Financial Health (ICFH) and TITHE.LY, the online giving and church management app. (If you’re interested in reading the full report, you can purchase it HERE.)

It reports the results of a survey they conducted of 437 people across the U.S. who identified themselves as Christians.

It wasn’t a retirement survey per se’ as middle-aged individuals (45 to 60) comprised 34.78% of the study, and those over 60 represented only 14.19% of the sample.

Age of Respondents

The survey did, however, compile some data on retirement. I was particularly interested in the retirement savings data and how current retirees are doing. As you’ll see, the survey results were mixed and consistent with data from the wider population.

Respondent perceptions

In terms of their general financial health, the survey found that the majority of the Christians interviewed (indicated that they are doing “okay” (38%), “just getting by” (23%), or “finding it difficult to get by” (8%). Only about 30% said they are “living comfortably.”

This is even though most households reported having ”upper middle class” income levels—53% of the respondents aged 30 to 44 had incomes of $100,000 or more, while 40% of those aged 45 to 60 earned above $100,000.

Notably, almost three-fourths of those over 60 said they were doing okay or living comfortably.

Not surprisingly, a significant percentage (35%) also said it was more challenging this year than a year ago. Inflation has affected all demographics, but some retirees—especially those on fixed incomes—feel it the most.

According to the 2023 Retirement Confidence Survey conducted by the Employee Benefit Research Institute and Greenwald Research, the relatively high percentage of respondents in the ICFH survey who indicated they are “doing okay” or better financially in retirement is pretty consistent with the broader population.

This survey found that 83% were ”somewhat” or ”very confident” that they ”will have enough money to take care of their basic expenses during retirement.”

What about savings?

This is an area where the study got interesting. The survey found that, relative to Biblical teachings on saving,

”While most Christians acknowledge the biblical wisdom of saving for the future, a notable portion (35%) remain uncertain or disbelieving about these teachings, indicating a need for greater education and awareness within Christian communities.”

Also, although 65% believe that the Bible teaches the wisdom of saving for the future, the survey found that 56% had less than $100,000 saved for retirement across all age groups.

Perhaps more concerning was that 55% of those in their peak earning years (age 45–60) had less than $100,000 saved and of those over age 60, 63% of those surveyed over the age of 60 (i.e., possibly nearing retirement age) had less than $100,000 saved for retirement.

Surprisingly, when asked whether they felt their retirement savings were “on track,” the majority (54%) responded yes, while the rest said no (35%) or that they were unsure (10%).

As you can see in the chart above, a majority said “yes” in all demographic groups except for the age 18-29 crowd, which also had the highest percentage of “I don’t know” responses (which is understandable).

Some of my questions

These results were interesting, but some were a little puzzling.

The majority believed in the biblical principle of saving for the future and felt at least somewhat assured that they were on the “right track” in saving for retirement. But how can we reconcile that with relatively low retirement savings across the board?

There are many possible explanations, but it’s impossible to know without asking the same sample of current and future retirees or a representative subset.

However, we can assess whether these savings levels are reasonable by identifying a target amount to have saved by a particular age.

To do this, we can use some guidelines, including what is sometimes called your ”Retirement Account Multiple” or ”RAM” for short. (I discuss this concept extensively in my book, Redeeming Retirement: A Practical Guide to Catch Up.)

For example, Fidelity Investments, which has done some research in this area, recommends the following:

• At least one times your salary by your 30th birthday
• Three times your salary by your 40th birthday
• Six times your salary by your 50th birthday
• Eight times your salary by your 60th birthday

But let’s assume that these savings targets are unrealistic for many (and that Fidelity is just trying to get you to invest more of your money with them—just kidding; I like Fidelity, and I don’t think that’s the basis for these numbers; you can read the actual basis for them HERE — see Footnote #1) and reduce them such that they become the following:

• At least 0.5 times your salary by your 30th birthday
• Two times your salary by your 40th birthday
• Four times your salary by your 50th birthday
• Six times your salary by your 60th birthday

I don’t have the raw data from the ICFH survey, but we can make some estimates about the median income for each demographic. Based on that and the adjusted Fidelity saving guidelines, we can come up with the corresponding retirement savings target amounts:

• Age 30 median income of $75K—savings goal of $39K
• Age 40 median income of $90K—savings goal of $180K
• Age 50 median income of $120K—savings goal of $480K
• Age 60 median income of $130K—savings goal of $780K

Now, we can compare this to the savings reported by those in the study.

Of those age 45–60, 55% had less than $100K saved (the RAM target range is approximately $400K to $800K), and of those over age 60, 63% of those surveyed also had less than $100K saved for retirement (the RAM target is $800K plus with for those with pre-retirement income of $130K).

In other words, the results of this survey suggest that a significant number of the respondents are well short of even these adjusted savings goals.

So, what should we make of this? Does it mean these retirees or future retirees are heading headlong toward a personal financial cliff?

It’s hard to say since we know little about their retirement plans.

The study does provide additional information about debt, budgeting, etc., that could be helpful, but it still doesn’t provide a satisfactory explanation.

Some may want to save more but lack the financial margin to do so. Others may be unsure whether it’s biblical to save more than they already are. Finally, some may not know they’re behind and would save more aggressively if they did.

Before we can say their savings would be too little for their retirement spending needs, we need to know other things about them. Here are the biggies:

• When do they plan to retire? When they retire may determine how soon you have to start Social Security benefits and how long your retirement will be.
• Do they plan to work in retirement? Lots of people intend to, but not as many do.
• What are their other sources of retirement income? They may not need to depend as much on their savings if they have other income besides Social Security.
• What will their actual expenses (including giving) be? This is a big question and largely unpredictable.
• What will inflation’s impact be on their expenses? They might assume 2% to 3% per year, but as we know all too well, it can run much higher in some years.
• How much risk will they take in their retirement portfolio? They need to consider their risk tolerance (willingness to take risks) and their risk capacity (ability to take risks).
• How will their costs change over the years? One thing we know for sure is that they will probably, but we can’t know by how much.

You may see the problem: Many of these variables are unknown or can’t be predicted with 100% accuracy.

This presents every retiree with a similar challenge: Maximizing our available income sources to meet our spending needs throughout an unpredictable retirement, balancing somewhat predictable income with mostly unpredictable expenses.

A biblical perspective

Before I discuss the retirement challenge further, I want to acknowledge again that Christians can be conflicted about saving and investing. (You may recall that 35% of those surveyed were either unsure or did not believe that the Bible teaches the wisdom of saving for the future.)

I wrote this a while back in an article for The Gospel Coalition:

Some Christians don’t save for retirement because they believe it’s disobedient (usually quoting Matt. 6:19–20) or feel guilty about putting money away when others are in such great need. Others believe it isn’t necessary because God will take care of them (Isa. 46:4). Some would like to save but spend everything they make (Prov. 13:18).

You may be surprised to learn that the Bible encourages saving. Scripture condones saving for known, anticipated needs in the future (Gen. 41; Prov. 6:6–11; Prov. 21:5; Prov. 21:20).

The Bible also teaches that it’s possible to wisely save and invest for the future while also being “rich toward God” by “storing up treasures in heaven” (Luke 12:21; Matt. 6:19–21).

Therefore, I think there is a relatively simple, biblically balanced solution (at least conceptually) to this problem, though I admit it can be difficult in practice:

Approach saving and investing for retirement from a biblical perspective and heart motivation that balances our stewardship in general and retirement planning in particular with giving, spending, and saving for other short- and long-term needs while continually practicing generosity.

Granted, the Bible doesn’t directly address retirement, but in our modern age, it’s a reality many of us will face, either by choice or due to circumstances beyond our control. Therefore, planning and saving wisely for that phase of life is essential while “storing up treasures in heaven.”

The retirement challenge

Returning to the practical matter of solving the “retirement challenge,” there’s much more to that than I can cover in this article. I have addressed this on this blog over the years.

But the more I’ve thought about this, the more I think it’s less about savings (although important) and more about the other big piece of the retirement financial puzzle: expenses (also known as costs, spending, consumption, or whatever you want to call them)—their inevitability and unpredictability.

Some expenses, like groceries, housing, and subscriptions, are pretty predictable, and we can assume they’ll increase due to inflation. However, life is full of surprises. Unexpected car repairs, medical emergencies, or sudden family needs can sabotage your spending plan.

Some suggest that your expenses decrease as you transition through retirement. It would be more accurate to say that your spending may be less in certain areas (discretionary travel, for example), but that may not mean your year-over-year total expenses will change; that depends on other variables.

The most predictable expenses (i.e., basic living expenses) are the minimum you need to fund in retirement. You may be sure your living expenses will be $50,000 next year, but you can’t know whether you’ll have a significant, unpredictable expense or two next year.

Your expenses, both annually and over the remainder of your lifetime, also depend on your retirement age and how long you’ll live in retirement, which is also an unknowable variable.

To illustrate, if your retirement expenses are $50,000 yearly, retiring at age 66 and living only for one year would cost you $50,000. But if you live to age 90, your annual expenses could double due to inflation, and your total retirement expenses, adjusted for inflation, would cost you well over $1 million, not including any unforeseen expenses.

The bottom line is that viewing retirement stewardship as primarily a savings and income problem is inadequate. It all starts with costs; some retirees have more control over them than others.

Some basic strategies

Those with less savings and no other sources of retirement income besides Social Security may be unable to maintain their pre-retirement spending level. So, while it would be great if they could save a little more, they may also need to cut expenses aggressively to make ends meet.

In addition to reducing expenses, there are also strategies on the savings withdrawal approach and income side that might also help. Here are a few:

Delay retirement (and Social Security) and work longer. That’s just what you wanted to hear, right?! But doing both is the most effective strategy. Delaying Social Security (perhaps until age 70) can increase income, and working and saving longer will grow your savings while simultaneously reducing the years they need to last, i.e., your total spending in retirement.

See: Why You Should Consider Delaying Collecting Social Security Benefits

Work part-time in retirement. This can increase your income and be beneficial in many other ways. According to Pew Research, in 2023, 19% of adults ages 65 and older were still employed in some capacity.

See: Now That You’re Retired, What Do You Do All Day?

Consider downsizing. Downsizing, mainly if it eliminates a mortgage payment or other major housing expenses such as taxes, maintenance, and insurance, can significantly help the expense side of the equation.

See: Housing Decisions and Financing Options in Retirement

Consider alternate income strategies. You can improve your situation by changing your retirement income strategy. For example, purchasing a lifetime income annuity with part of our savings might find more lifetime spending than investing it in stocks and bonds and using a systematic withdrawal strategy.

See: Sustainable Retirement Income—Part One: Fixed Withdrawals

Trusting God amidst uncertainty

Since neither your lifespan nor your spending during that is entirely predictable, estimating the total cost of retirement is highly uncertain. Therefore, the answer to the question, “Have I saved enough for retirement?” is, “We can’t know for certain.” Sure, we can discuss high-level targets, estimates, and typical outcomes if you invest in a particular way, but ultimately, no one’s retirement is “typical.”

This is where the foundational biblical principles of wisdom, humility, moderation, generosity, faith, and trust in God come in. We humbly acknowledge that we can’t know the unknowable; we seek biblical wisdom in stewarding our finances; we pursue moderate lifestyles (with the occasional splurge); and we daily acknowledge our ultimate dependence on God for our provision, now and in the future.

“In all your ways acknowledge him, and he will make straight your paths” (Prov, 3:6, ESV).