This article is part of the Biblically-Informed Framework for Retirement Stewardship (BIRFS). It was initially published in March 2017 but was updated in January 2026.
This article is the first in a four-part series focused on the most important thing you can do during different stages of life to be able to retire with dignity. In this article, I’ll discuss the most important thing you can do when you’re in your 20s and 30s.
In the second article, I’ll discuss the most important thing to do in your 30s and 40s; in the third, I’ll focus on the 40s and 50s; and finally, I’ll discuss what retirees in their 60s and beyond need to do.
Understanding the biblical framework for retirement stewardship
Before diving into the specific action for your age group, it’s important to understand that biblical 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 primarily on the Self-Sustaining Principle—building financial sustainability through saving. While financial provision is the highest priority for your age group, you should also begin developing habits related to the other principles: obtaining basic insurance protection (Caregiving) and establishing patterns of generous giving and service despite limited resources (Ministry). For a complete understanding of how these three principles work together, see the Biblical Framework for Retirement Stewardship.
Now, let’s focus on what matters most financially in your 20s and 30s.
The most important thing: start saving
Admittedly, there are many important steps you need to take to ensure you can retire with dignity. In these articles, I want to encourage you to focus on the factors that will have the greatest impact later.
If you’re reading this and you’re older, send this to your son or daughter, or perhaps a friend who could benefit from it!
As I describe in the checklist for those in this phase of life, if you are in your 20s or 30s, you should consider finding work you enjoy, setting up a budget, avoiding most debt, and starting to save, among other things.
Some would probably say that finding and keeping a job is the most important thing, and I understand that. But let’s take that as a “given”—sometime in the years after you leave college, you are going to find viable employment. Once you do that, what is the most important thing you need to do to retire with dignity?
Drumroll, please… Start saving! Yep, that’s it. Sounds simple, but the thing that can help you the most also happens to be one of the hardest during this stage of life.
What’s the big deal?
You’ve heard it before: “Save as much as you can now for retirement because Americans are living longer than ever and your chances of running out of money are greater than ever.” If you’re in your 20s or 30s, you’re probably thinking, “yea, yea., those older folks need to get their act together.” Please listen: This isn’t just a catchy phrase; it’s a plea to everyone to save enough to retire with dignity. The younger you are, the greater your opportunity to get this right. You only have one shot at it!
Consider these concerning statistics:
- 36% of non-retired adults have no retirement savings at all (Federal Reserve, 2024)
- 20% of adults ages 50+ have no retirement savings (AARP, 2024)
- The median retirement savings for ages 55-64 is $185,000—far short of what most will need (Federal Reserve Survey of Consumer Finances, 2023)
- 58% of workers feel behind on their retirement savings (Bankrate, 2025)
- 20% of Americans tap into their 401(k) assets early, either through a loan or withdrawal
According to the 2016 JP Morgan Asset Management: Guide to Retirement, which I will reference several times in this series (I’m not promoting JPM Asset Management, but they are a reputable firm, and I like this report that they put out each year), a 35-year-old making $75,000 annually should have $90,000 saved for retirement. That implies that a 35-year-old has been saving something since their mid-20s. Compare that to the data points listed above, and you’ll see that these concerns are well-founded.
Some have labeled this disparity one of the great financial and social issues of our time.
Whatever the exact extent of the “crisis,” it will take a concerted effort by individuals, employers, financial institutions, and the government to address it. In this article, I will argue that saving is the most important thing you can do when you’re young to improve your retirement readiness.
Why this is the most important thing in your 20s and 30s
You’re out of college and in your first or second job. You’re making more money than ever, but it never seems to be enough. You may have even bought your first condo or house, but you’re more likely to be paying high rent to live closer to work. You enjoy eating out, going to movies, and taking an occasional road trip.
Perhaps you’re married and have a child. If so, you’re dealing with additional expenses. You likely have student loans, a car loan, and credit cards.
In other words, lots of life without lots of money. Your focus is on the here and now—you have bills to pay and things to do. Sound about right?
According to Forbes, one reason we don’t save for retirement is that, for many, the future isn’t real—the only thing that matters is the here and now. Forbes cites three main reasons: pressing immediate needs, a desire for instant gratification at the expense of the future, and the preference for “now” over “then.” In short, we have great difficulty imagining our retired “future selves” (called “cognitive shortsightedness”).
Let’s say you’re 30 years old and earning $50,000 annually. I know it’s hard, but imagine for a moment that you are your “future self.” You’re 70 years old (think about your grandpa if you need to) and retired.
If you need more help, I think there’s an app called AgingBooth that lets you age your face on-screen so you can visualize your “older self”. Use it at your own risk; I think it’s kinda creepy.
Based on average annual inflation of 3%, you need an annual income of $98,490 to replace 70% of your pre-retirement income. Social Security is virtually non-existent except for the neediest retirees. You don’t have a pension—they became obsolete several decades ago. Due to advances in healthcare, the average life expectancy is now nearly 100 years. And you need enough money to live another 20 or 30 years, perhaps longer.
Now, you’re back to your “current self.” Based on what you now know about your “future self,” what is the most important thing you can do at this point in your life? It’s simple: start saving—the sooner, the better! The sooner you take advantage of the “magic” of compound interest, the better. (More on that later in the article.)
Just do it
If your employer offers a 401(k) or 403(b) type retirement savings plan, sign up for it! If it doesn’t, or if you’re self-employed, you can open your own Traditional or Roth IRA. (If you’re a business owner, you will want to consult your tax professional.)
Sadly, research shows that fewer than half of us participate in employer-sponsored retirement plans. Since most employers offer some savings match, many people are passing up FREE MONEY! If your employer matches your contributions dollar-for-dollar up to a certain percentage of your income, that is an instant 100% return! If they match up to 6% of your income, you are effectively saving 12% a year, including the employer match. (You can do the math for your own individual situation.)
Saving early in your career is probably the most powerful thing you can do to make sure your “future self” can retire with dignity.
It’s also important to do it automatically on an ongoing basis—set on “auto-pilot.” You can use payroll deductions (to an employer-sponsored plan) or electronic funds transfer (from your checking account to your IRA) to make this happen.
Optimally, you will save between 10 and 15% (including the employer match). If you start saving less, you may have to ramp up significantly later in life.
The “eighth wonder of the world”
The reason it’s so important to start early is to take advantage of the “compounding effect.” Albert Einstein put it this way:
Compound interest is the eighth wonder of the world. He who understands it earns it … he who doesn’t … pays it.
The power is in the fact that when you earn interest on savings, that interest then earns interest on itself and is compounded monthly, year after year. The earlier you start, the longer it has to compound, and the results can be quite amazing.
Look at the examples shown in the chart below from the JPM 2016 Retirement Guide:
In this example, Quincey saves and invests $10,000 a year from age 25 to age 35, for a total of $100,000, and then stops. He will have over $950,000 by age 65.
Lyla, who waits until age 35 to start saving and continues until age 65, will have about $920,000. She saved more than Quincey, who didn’t save at all past age 35, but will retire with less.
Then there’s Chloe, who starts 10 years earlier than Lyla and saves $400,000 from ages 25 to 65. She will have an astounding $1.870 million, about double what Quincey and Lyla will have, just because she started ten years earlier!
Noah comes out on the short end of the stick as, although he starts early and saves $400,000 until age 65, the same as Chloe, he invests mainly in “cash” and does not get the returns enjoyed by the other three. He ends up with only $652,214, about a third of what Chloe does.
The financial markets (stocks and bonds) carry some risk, but inflation will devalue your savings if you keep them all in cash, which is even riskier.
Slow and steady wins
The lesson here is clear: The earlier you save—even if it’s a relatively small amount—the more time you have for compound interest to work its wonders. Even if things go south from time to time (and they inevitably will), the good and sometimes great times will help smooth things out, and you’ll almost always be better off than sitting idly in cash year after year.
Once you get on your feet after college, get out of debt, set aside an emergency fund, and then start saving for retirement. Live below your means and use a budget so you can maintain the financial margin you need to save and give. Starting with just $50 or $100 a month in your 20s will pay off big by the time you are in your 60s. And don’t overdo it. We’re talking about saving, not hoarding. Slow and steady wins the race!
Beyond saving: the other two principles
While saving is your top financial priority in your 20s and 30s, don’t neglect the other dimensions of retirement stewardship:
Caregiving Principle in Your 20s-30s: Even though retirement and long-term care seem impossibly far away, this is the time to:
- Obtain adequate life insurance if you have dependents
- Get disability insurance to protect your income
- Create basic estate documents (will, power of attorney, healthcare directive)
- Understand your parents’ long-term care plans
Ministry Principle in Your 20s-30s: Your pattern of giving and service now shapes your entire life. Despite limited income:
- Establish consistent giving habits (even if modest amounts)
- Serve regularly in your local church
- Use your skills to help others
- Develop a heart for generosity that will grow with your income
These habits established now will serve you well throughout your life and prevent the Self-Sustaining Principle from becoming merely about accumulating wealth for its own sake.
The biblical foundation
From a biblical stewardship perspective, saving for the future is wise and commended. Proverbs 21:20 says, “Precious treasure and oil are in a wise man’s dwelling, but a foolish man devours it.” Proverbs 6:6-8 tells us to consider the ant, which “prepares her bread in summer and gathers her food in harvest.”
However, our ultimate security must rest in God, not our savings. As Proverbs 11:28 warns, “Whoever trusts in his riches will fall, but the righteous will flourish like a green leaf.” We save diligently while trusting ultimately in God’s provision. We build financial sustainability (Self-Sustaining Principle) not for independence from God or others, but to avoid burdening them unnecessarily and to increase our capacity to give and serve (Ministry Principle).
Connecting to the complete framework
This article addressed the Self-Sustaining Principle; specifically, the critical importance of starting to save early in your career. The power of compound interest makes your 20s and 30s the most leveraged decade for retirement preparation. Every dollar saved now is worth multiple dollars saved later.
However, retirement stewardship involves more than just financial preparation. To understand how the Self-Sustaining Principle integrates with the Caregiving Principle (preparing to both give and receive care) and the Ministry Principle (bearing fruit in every season), see the complete Biblical Framework for Retirement Stewardship.