How Can Christians Financially Set Themselves Up for Retirement?

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For many people, retirement is the pot of gold at the end of the working rainbow. Some used to call them the “golden years,” but the term “golden” only applies if you have enough saved to enjoy them. Otherwise, those years could feel more like “aluminum foil years,” shiny on the outside but not nearly as valuable when you need them most. Retirement is that sweet dream of kicking back after decades of hard work, enjoying the fruits of your labor without a time clock in sight. But here’s the catch: to get to that golden finish line, you must do some serious groundwork now.

As Christians, we’re called to be good stewards of what God has entrusted to us (1 Peter 4:10), and that includes our finances. Planning for retirement isn’t just about dollars and cents but about honoring the resources God has given us and ensuring we can live out our later years with peace and purpose. So, how do we set ourselves up financially for retirement? Let’s walk through some key questions and steps to make sure you’re ready when it’s time to hang up the work boots.

The Big Picture: Financial and Non-Financial Questions to Consider

Before we dive into the nitty-gritty of numbers, let’s start with the core of the matter. Retirement isn’t just a financial milestone; it’s a life transition. Here are some foundational questions to consider as you plan.

What Do You Want in Retirement?

First, what does your dream retirement look like? Are you envisioning a life of globe-trotting to play golf on every famous course from Scotland to Scottsdale? Or are you more content with a quieter pace, volunteering at your church or diving into a contemporary novel from the library each week? The lifestyle you desire in retirement matters, because your choices come with different price tags.

As Christians, we can also ask, “How can I serve God in this season?” Perhaps your retirement goal includes taking mission trips or mentoring younger individuals in your community. Whatever it is, define it now. Lay out your vision, pray over it, and let God guide the path. Once you know what you want, you can start figuring out if your finances can support it.

Are You Ready to Retire?

Just because you can retire does not mean you should. Retiring is not the end of your life; it is the beginning of the next chapter. If you don’t have a clear picture of what that next chapter is going to look like, then maybe you should hold off before turning the page.

Retiring often means losing the social network of your workplace, the mental stimulation of your job, and sometimes even the sense of purpose that comes from your daily grind. I’ve seen folks retire and then realize they miss the hustle more than they thought. It’s like a dog who finally catches the car and doesn’t know what to do with it! So before you leap, ask yourself, Am I ready for this shift? What will fill my days? As much as retirement is about dollars, it’s also about your heart and mind, so factor that into the equation.

Can You Live on a Retirement Income?

For many, retirement income takes a dip compared to working years, but not always. If you’ve planned well, your income might even go up! Either way, you need to know if you can sustain the lifestyle you want with the income you’ll have. If you’re unsure, here’s a practical test. Estimate your retirement income (from Social Security, savings, pensions, etc.) and try living on that amount now for a few months. If it feels tighter than skinny jeans after Thanksgiving dinner, you might need to adjust your expectations or work a little longer to build up your nest egg.

The Financial Questions You Need to Consider

Now let’s get into the nuts and bolts of financial planning for retirement. These are the money matters that’ll make or break your retirement years.

How Will You Generate Income in Retirement?

When you’re no longer punching a clock, where’s the money coming from? For most folks, retirement income comes from a handful of sources. Let’s break them down:

1. Retirement savings like 401(k), 403(b), or IRA

These accounts are often the backbone of your retirement income. But you control how much you save in these accounts. To achieve a comfortable retirement, you must save aggressively today. That’s why knowing the lifestyle you desire in retirement is so critical, because it determines how much you need to be saving now.

2. Social Security

If you’ve worked at least 10 years, you are eligible for Social Security retirement benefits. The amount depends on your earnings history and when you claim your benefit (anywhere from age 62 to 70). Delaying until 70 can significantly boost your payout, but that does not automatically mean it is the right choice for you.

3. Savings and Investments 

Beyond retirement accounts, personal savings or investments (stocks, bonds, real estate) can provide additional income streams. Diversifying here is like having a backup generator when the power goes out. It’s nice to have when you need it.

4. Pensions 

I’ll mention this for completeness, but pensions are about as common as a payphone these days. If you’re one of the lucky few with one, count it as a blessing!

5. Part-Time Work 

I know you are thinking I’m retired, so why am I going back to work? Many retirees take on part-time gigs, not always for the money, but for the social connections, mental stimulation, or just to cure boredom. Ever seen a retiree become a Walmart greeter with more enthusiasm than a game show host? Sometimes, it’s about purpose as much as pay.

Have You Accounted for Inflation?

The risk of inflation is a significant factor to consider when planning your finances for retirement. Over the last 50 years, the average inflation rate has been approximately 4%. If that continues, then it means that every 18 years the price of goods and services will double. Your $100 grocery bill today will be $200 in 18 years. If it costs you $40 to fill up your tank now, it will cost you $80 in 18 years.

The question is, can your income keep up with the rate of inflation? The best way to combat it is through smart investing in your retirement accounts and other savings. If your money isn’t growing at least at the rate of inflation, it’s shrinking in real value. Working with a financial advisor is one way to help ensure your investments outpace this silent income killer.

Have You Factored Taxes into the Equation?

It’s easy to look at your retirement account balance and think, “I’m set!” But hold on. If it’s a pre-tax account like a traditional 401(k) or IRA, you haven’t paid taxes on that money yet. If your balance is $100,000, then it may be only $75,000 after taxes. Taxes don’t disappear in retirement. You’ll owe them on income, withdrawals, and sometimes even Social Security benefits. The good news? There are legal ways to lower that tax burden, but here’s my advice: don’t “get creative” unless you want your retirement to include striped uniforms and free government housing. Sit down with a tax advisor or financial planner to map out a tax savings strategy.

Don’t Forget about Healthcare and Long-Term Care

One of the biggest risks in retirement is the cost of healthcare. As we age, we tend to spend more on medical needs. According to Fidelity, a 65-year-old couple retiring in 2023 can expect to spend about $315,000 on healthcare in retirement. That’s not pocket change! So, make sure you’ve factored in Medicare premiums, out-of-pocket costs, and supplemental insurance into your plan.

Then there’s long-term care, which can be an even bigger financial hit. You need long-term care when you require assistance with the activities of daily living, such as bathing, dressing, eating, toileting, and other tasks. According to Genworth’s 2024 data, a private room in a nursing home averages nearly $128,000 per year. That can quickly drain your nest egg. Explore long-term care insurance or self-funding options now, while you’ve got time to prepare.

What Happens When You’re No Longer Here?

As Christians, we know this life is temporary, and we’re headed for glory (2 Corinthians 5:1). But until that day comes, we’ve got to think about what happens to our “stuff” when we’re gone. Estate planning isn’t just for the wealthy but for anyone who wants to leave a legacy, whether that’s to family, charity, or their church.

Ask yourself: Do I want to spend all my savings in retirement, or leave an inheritance for my kids or grandkids? There’s no right or wrong answer because it’s your money! If you want to spend it all, don’t feel guilty about it because you have earned that right. But your choice will shape how you manage your finances now. If you want to leave a legacy, then work with an estate attorney to set up a will, trusts, or beneficiary designations on your accounts. Estate planning isn’t just about money but about stewarding your blessings even after you’re gone.

A Biblical Perspective on Retirement Planning

As believers, we’re called to be wise stewards of God’s resources. Planning for your retirement is one step in your stewardship journey. Wherever you are on this journey, start right there. Whether you’re 25 or 65, it’s never too late to begin. Pray over your plans, seek wise counsel, and take one step at a time to navigate your journey to retirement.

Clarence L. Haynes Jr. is a dynamic speaker, Bible teacher, and co-founder of The Bible Study Club, dedicated to helping people live with purpose and clarity. In addition to his ministry work, Clarence has spent the last 13 years as a trusted financial educator, guiding thousands of people across the country—including employees at many Fortune 500 companies—toward lasting financial wellness. His unique ability to blend practical wisdom with spiritual insight equips people to thrive in every area of life.

He is the author of The Pursuit of Purpose, which helps readers understand how God leads them into his will, and the author of The Pursuit of Victory: How To Conquer Your Greatest Challenges and Win In Your Christian Life. Clarence is also committed to helping 10,000 people learn how to study the Bible and has released his first course, Bible Study Basics, to achieve that goal. To learn more about his ministry and resources, please visit clarencehaynes.com.