Most retirement advice focuses on one question: how much money do you need? That matters. But for many Christians, retirement raises deeper questions too. What is this season for? How do we keep giving? How do we trust God and still plan wisely?
Faith-based retirement income planning tries to answer both kinds of questions. Here is how it works, step by step.
Scripture does not describe retirement the way our culture does, as decades of leisure. In Numbers 8:25-26, Levites stepped back from heavy temple work at 50 but kept serving and helping others. The work changed; the calling did not.
A faith-based plan often begins with questions like these:
Your answers shape everything that follows. A couple who wants to spend six months a year on mission trips needs a different plan from a couple who wants to help raise grandchildren nearby.
Once you know the purpose, the next job is turning savings into income. We call this a retirement paycheck. It answers: what comes in each month, from where, and for how long?
Common sources:
A good plan looks at timing. Which source do you use first? Some people use savings in their early 60s so they can delay Social Security. Others claim earlier for good reasons. There is no single right answer.
Proverbs 22:3 says the prudent see danger and take refuge. In retirement, the main risks include:
Planning cannot remove these risks. It can help you see them and prepare. Some families keep a cash reserve for a few years of spending. Others consider other income sources. Each choice has its own costs, risks and tradeoffs.
In a faith-based plan, giving is a line item from the start.
Tools that can help, depending on your situation:
Talk with your tax professional about how these apply to you.
Taxes can be one of the largest expenses in retirement. Faith-based planning is not about avoiding taxes you owe ("Give to Caesar what is Caesar's," Matthew 22:21). It is about not paying more than you need to, so more is available for family and giving.
Key areas:
Your investments should serve your income plan, not the other way around. Money you need in the next few years usually belongs in steadier places. Money for 10 or 20 years from now can often take more risk.
Some Christians also want their investments to reflect their values. Faith-based or values-based funds exist, and they come with tradeoffs such as cost and fewer choices. It is your decision.
Proverbs 13:22 talks about leaving an inheritance. Legacy planning covers wills, trusts, beneficiary designations and powers of attorney. It also covers the conversations: what you want your children to know about money and faith. (See The Biblical Case for Estate Planning.)
Life changes. Markets change. Laws change. A good plan is reviewed at least once a year, and anytime something big happens, such as a health change, a move or the loss of a spouse.
Some believers worry that planning shows a lack of faith. Jesus told a story about a builder who sits down first to count the cost (Luke 14:28). Planning is a form of stewardship. You plan carefully, and you hold the plan with open hands.
If you are in your 50s or 60s, a few simple steps can help:
Will Snodgrass, CFP®, works with Christian pre-retirees and retirees from our office in The Woodlands, Texas, and by video with clients across Texas. Advisory services are available only where Will is properly registered or exempt from registration. See Retirement Planning in The Woodlands or Christian Financial Advisor in Texas.
Related reading: What Is a Biblical Financial Advisor? | Will I Outlive My Money? | Christian Retirement Planning 101
A retirement income plan that starts with your Christian values and purpose, and builds income, giving, tax and legacy decisions around them.
The tools are the same. The priorities and questions are shaped by faith, especially around giving and contentment.
After age 70½, a qualified charitable distribution may let you give from an IRA directly to a qualified charity. Check with your tax professional and the church.
Many Christians see careful saving as stewardship. See Is It Biblical to Save for Retirement?.
Ideally 5 to 10 years before retirement, but it is never too late to make a plan.
This material is for education only and is not tax or legal advice. Consult your tax or legal professional about your situation. Education only, not individual advice. Securities and advisory services offered through Commonwealth Financial Network®, Member FINRA/SIPC, a Registered Investment Adviser. Fixed insurance products and services are separate from and not offered through Commonwealth.