The Parable of the Talents and Your Retirement Plan

Our practice's name, Matt25 Capital, comes from Matthew 25. In that chapter, Jesus tells the parable of the talents. It is one of the clearest pictures of stewardship in Scripture, and it has a lot to say to anyone getting ready for retirement.

A man going on a journey entrusts his property to three servants. He gives one five talents, another two, and another one, "each according to his ability." A talent was a large sum, many years of wages.

The first two servants put the money to work and double it. The third digs a hole and buries his talent. When the master returns, he praises the first two: "Well done, good and faithful servant." He rebukes the third, who says, "I was afraid."

1. It was never ours

The servants manage someone else's money. That is the starting point of Christian stewardship: what we have is entrusted to us. That idea changes how we think about retirement savings. They are not just "my money." They are resources to manage for God's purposes, including providing for family and giving to others.

2. Different amounts, same faithfulness

The servants received different amounts, and the master praised the two-talent servant with the same words as the five-talent servant. Your retirement plan does not need to look like anyone else's. Faithfulness is measured by what you do with what you have, not by the size of the account.

That is a helpful word for anyone who feels behind, or who compares their savings with friends.

3. Fear is the real problem

The third servant's mistake was not losing money. He did not lose any. His mistake was acting out of fear. "I was afraid, and went and hid your talent in the ground."

Retirement brings real fears: running out of money, a market crash, health costs. Those fears are understandable. But decisions driven only by fear can lead to problems too, such as keeping everything in cash while inflation erodes it, or freezing and making no plan at all.

The goal is not to ignore risk. It is to face it with a plan, rather than bury it.

4. Faithfulness involves wise action, not recklessness

The parable is not a call to take wild risks. The faithful servants "put the money to work." In financial terms, that means using resources thoughtfully, with a purpose.

For retirees, that often means balance:

• Enough in steady, accessible places to cover the next few years of spending
• A portion invested for growth to keep up with inflation over a long retirement
• A plan for how and when each part will be used

No investment approach removes risk, and past results do not predict future ones. But a clear plan can help you act with confidence instead of fear.

Right after the talents comes the scene of the sheep and the goats (Matthew 25:31-46). Jesus says that whatever we did for "the least of these," we did for him: feeding the hungry, welcoming the stranger, visiting the sick and imprisoned.

Put the two passages side by side and a picture of stewardship forms. We are trusted with resources (the talents), and a major purpose of those resources is caring for others (the least of these). That is why we believe giving belongs inside a retirement plan, not outside it.

Here are practical ways to apply Matthew 25 as you approach retirement:

1. Take inventory. List what you have been entrusted with: savings, home, pension, Social Security, skills, time.
2. Name the purpose. What is each part for? Income, emergencies, family, giving, legacy.
3. Face the fears. Write down what worries you most. A plan can address many of them directly.
4. Build a retirement paycheck. Decide how savings may become regular income. (See How Faith-Based Retirement Income Planning Works.)
5. Plan generosity. Set a giving goal. After 70½, consider whether qualified charitable distributions from an IRA fit. (See QCDs.)
6. Use your time and skills. Retirement can free you to serve. Many retirees mentor, volunteer or serve in missions.
7. Review regularly. The master "settled accounts." An annual review keeps your plan on track.

Many business owners see their company as their largest "talent." Planning for succession, whether selling, passing it to family, or winding down, is a stewardship decision too. It affects employees, family and your own retirement income.

The heart of the parable is not the return. It is the relationship: a master who entrusts, and servants who respond faithfully. Thoughtful retirement planning is one way to respond faithfully with what you have been given.

Will Snodgrass, CFP®, built Matt25 Capital around this parable. He works with Christian pre-retirees, retirees and business owners from our office in The Woodlands, Texas, and by video across Texas. Advisory services are available only where Will is properly registered or exempt from registration. Take the Free Retirement Paycheck Readiness Scorecard at scorecard.matt25capital.com, or visit Christian Financial Advisor in The Woodlands.

Related reading: Is It Biblical to Save for Retirement? | From Fear to Faith in Retirement | Christian Legacy Planning Framework