In your financial life, one rule should likely always apply — if you don't have the money for something, don't buy it. Following this rule can help you stay out of debt, lower your financial worries, and grow in gratitude for what you have.

The theological principle underlying this financial rule is the principle of contentment. In most cases, both secular philosophers and the writers of scripture urge us to be content with what we have in order to enjoy life now.

What does contentment look like in the context of a retirement plan? Shouldn't you gather and store all you can now so you won't run out later? Isn't contentment just a spiritual excuse for lack of planning?

Let's explore the math behind how much you need to retire and the theology behind being  content with what you have.

Understanding Biblical Contentment

Contentment is not about living a life of deprivation or having to sacrifice everything you enjoy. Rather, biblical contentment means finding satisfaction and joy in what you have while acknowledging that everything you have is a gift from God.

In 1 Timothy 6:6-8, the apostle Paul wrote, "But godliness with contentment is great gain. For we brought nothing into the world, and we can take nothing out of it. But if we have food and clothing, we will be content with that." This passage reminds us that our ultimate goal is not to accumulate wealth and possessions but to live a life focused on  God.

Does that mean we shouldn't take any action to prepare for our financial future and just… trust God?

Certainly not. 

Scripture also teaches us the importance of being good stewards of our resources. Proverbs 21:20 says, "The wise store up choice food and olive oil, but fools gulp theirs down." And Proverbs 13:22 tells us, "A good person leaves an inheritance for their children’s children, but a sinner’s wealth is stored up for the righteous."

What do we do with these seeming contractions? How do we simultaneously store up wealth, be generous, and be content with what we have?

The answers lie in understanding biblical contentment. It has nothing to do with how much money you have and everything to do with the state of your heart and emotions. As Christian author and discipleship expert Melissa Kruger says, "Contentment is not the fruit of perfect circumstances or a calm constitution. It’s the result of trusting in the Lord."

By finding joy and satisfaction in what you have and being a wise and faithful steward of your resources, you can approach retirement with a sense of peace and trust in God's provision.

Defining Retirement Needs and Expenses

As you prepare and save for retirement, you’ll need to consider the financial costs. Take stock of your current lifestyle and consider how much you need to maintain it without a regular income stream from your business or employer. 

• Take a close look at your current spending habits. Consider things like housing costs, healthcare, lifestyle expenses, and any debts that need to be paid off before retirement.

  Proverbs 21:5 says, "The plans of the diligent lead to profit as surely as haste leads to poverty." This verse encourages us to be diligent and intentional in our financial planning to help us achieve long-term financial security.

• Consider factors like investment returns, inflation, and increased healthcare costs. It's a good idea to consult with a financial planner or retirement specialist who can help you plan for the uncertainty ahead and create a realistic retirement budget.

• Assess whether you have enough saved to meet those needs. If you find that you may not have enough, it's important to consider how you’ll close the gap. You might consider delaying retirement or making a few lifestyle changes to help you save more now or stretch your retirement funds further.

  For example, downsizing your home or relocating to an area with a lower cost of living could significantly reduce your housing expenses. Similarly, cutting back on discretionary spending or finding ways to supplement your income in retirement could also help make your retirement funds last longer.

In all your planning, it's important to keep biblical principles of contentment and stewardship at the forefront. Philippians 4:11-13, written from Paul's prison cell in Rome, says, "I have learned to be content whatever the circumstances...I can do all things through Christ who gives me strength." 

• How old are you now? This lets you know how far along in the process you should be. It is NEVER too early (or too late) to do something to prepare for your post-working life.

• When do you plan to retire? If you were born in or after 1960, you must be at least 67 years old to receive your full Social Security benefit. However, you may choose to "retire" any time you can afford it.

• How much money do you already have saved? This gives you a good sense of how effectively your current plan is working as well as how far you have to go before you can retire.

• How much do you plan to invest per month? T. Rowe Price suggests you have 1-1.5 times your income saved for retirement by age 35, 3-5 times your annual income saved by age 50, and 5-11 times your salary saved by age 60. If you’re below this target, you may need to consider increasing your monthly savings amount.

• What will be your return on investment? The average 30-year return on the S&P 500 is about 10%. Your return on investments will likely vary from this depending on your risk profile and the vehicles you invest in. 

The answers to these questions will help you answer how much money you'll likely have at your target retirement age. But how much will you need?

As a general rule of thumb, you can probably spend 85% of your pre retirement budget without adjusting your standard of living. This number may be higher or lower depending on your circumstances. In retirement, however, you won't be paying payroll taxes or saving for retirement.. But you may want to spend more on travel, hobbies, family activities, or ministry opportunities. So be careful not to underestimate how much retirement may cost. Retirement should not be a long coast to the end but a new opportunity for service and growth.

Exploring Biblical Principles of Stewardship for Retirement Planning

Principle of Work

The mission to work and serve others doesn't stop applying to us when we turn 67. Our service to God and His people should never stop. God has given us talents and skills to use for the good of His world. This work may provide additional sources of income, or it may be to volunteer - either way, you'll likely want to have the resources to slow down and focus on the work God calls you to in retirement.

Principle of Generosity

God honors His people when we give generously. You may want to restructure your giving after you leave the workforce, but you won't want to stop giving altogether. Generosity often includes more than just your checkbook. It can include your time and skills. You'll want to have enough money to continue to invest and share with people or programs you believe in.

Principle of Legacy

You can use your wealth to affect the lives of your family members, friends, and community for generations to come. If you want your assets to continue to serve God — even after you're gone — you'll want to consider how to use your wealth to create a meaningful and positive legacy.

Principle of Contentment

Contentment follows discipline. So discipline yourself to spend less than you earn, save for retirement and other God-given goals, and avoid the burden of debt.  To help be content, you may want to plan for some degree of uncertainty - only God knows what the future holds. So don't plan to work into your 90s. Don't hope your kids will cover your costs. Above all, don't put your trust in your money.

Aligning Your Retirement Goals with God's Plan for Your Life

As Christians, our ultimate goal is to follow God's will and plan for our lives. This should also apply to our retirement goals as much as any other aspect of life. While it's important to have financial security in retirement, it's likely more important to ensure that our plans align with God's purposes for us.

Consider… 

What is God calling you to do with the post-work years of your life? This could mean embarking on a new career path, pursuing a long-time passion, moving to a different location, or serving in a new ministry. 

How might you invest your retirement years to serve others and make a positive impact in your community? This could mean volunteering at a local nonprofit organization, mentoring young adults, or simply being a supportive presence to family and friends.

What do you and your spouse value as a Christian steward? For example, if you value caring for the environment, consider investing in sustainable funds for your retirement savings. If you value family, consider how you might create more opportunities for your family to spend time together or if there’s a particular mission or charity centered around the family that He’s calling you to support. 

Spend time in prayer asking what God may have you do in retirement, then ask if it aligns with what you have planned. 

By seeking God's guidance and aligning our plans with His purposes, you may just find your one step closer to finding true contentment and fulfillment in retirement — whether you retire with $2 million or $100 million in hand.