What the Bible teaches about financial preparation for old age

Dear Chuck,

I’m grateful that my parents prepared for aging in place and for assisted living, if necessary.

Some of my friends’ parents have not, and the financial pressure within those families has been difficult to watch. What tips can you offer people so they can avoid this financial drain in their senior years?

Getting Ready for Getting Old

Dear Getting Ready for Getting Old,

Your parents will be remembered for their consideration and wisdom. Hopefully, your question can inspire many other families to “set their house in order” (Isaiah 38:1) to be ready for the financial burden of aging and leaving our earthly home.

A serious financial shock

It is a fact that many of America’s elderly cannot cover their overhead. The National Council on Aging reports that 45% of older adult households do not have the income needed to cover basic living costs based on cost-of-living data from the Elder Index. Eighty percent are unable to cover a shock like widowhood, serious illness, or long-term care. In addition, Investopedia gathered data showing that three in 10 Americans in their 50s have no retirement account or pension. This is a sad reality.

While the parents of your friends may appear as if they have nothing, it is possible they have lived sacrificially to prepare. Possibly, they have life insurance and invest in assets that children are unaware of. That’s why it’s important to discuss the matter if possible. Unfortunately, not all families have the luxury of transparency due to relationship challenges, mental health, or other issues with children and/or blended-family situations. 

Getting ready for the inevitable

Preparing financially for one’s senior years is one of the most important forms of stewardship. It’s not just about having enough money. It’s about creating stability, preserving dignity, and living with purpose. The key is to begin now, long before becoming senior citizens. There is no escaping it. Should the Lord will it, we will become senior citizens ourselves one day! Start now by taking the following steps:

• Create a will and possibly a trust.
• Purchase health and life insurance.
• Fund an emergency savings account.
• Live debt-free and give joyfully.
• Invest wisely and consistently.
• Cap or decrease your lifestyle.

The earlier you begin, the better. Time is a powerful factor in financial preparation because of compounding. Consistently saving and investing over decades allows even small contributions to grow significantly. Even if starting late, intentional planning can make a meaningful difference.

A simple plan to follow

A foundational step is to build and maintain retirement savings. Contributing regularly to 401(k) accounts or IRAs provides long-term growth and potential tax advantages. If employers offer a match, take full advantage of that benefit. It’s one of the most effective ways to accelerate savings.

Reduce and eliminate debt. Entering retirement with large financial obligations can limit flexibility and increase stress. Aim to free up income so that resources will support needs rather than cover past decisions.

Plan for healthcare costs. Medical expenses typically increase with age and can become one of the largest financial burdens in retirement. Understanding insurance options, setting aside savings, and considering long-term care needs are all part of wise preparation.

Create a sustainable incomestrategy. This includes Social Security, retirement accounts, and any additional income sources. A clear plan helps ensure that your money lasts.

Fund an emergency account. Unexpected expenses still arise in old age. Accessible savings prevents the need to rely on debt or having to withdraw from long-term investments at an inopportune time.

Make lifestyle decisions. Living below your means before and during retirement creates margin and reduces financial pressure. It may also open the door to greater generosity and the freedom to act on what God lays on your heart.

Seek wise counsel. Financial advisors, trusted mentors, and knowledgeable friends provide perspective and help avoid costly mistakes. Proverbs reminds us that wise plans succeed with many counselors.

If possible, plan to continue working or pursuing meaningful activity to provide both income and purpose. View retirement as a season of contribution in new ways.

Anchor your preparation with trust. Financial planning is essential, but it does not provide ultimate security. God is the Provider. Preparation is an act of stewardship that must be paired with faith in God, who numbers our days.

The Bible teaches that the way we handle money now impacts our future both here and into eternity. We need not prepare out of fear but out of faithful stewardship. Here are financial actions and attitudes that are supported by Scripture:

• Plan, save, and multiply: Proverbs 21:5,Proverbs 6:6–8, Matthew 25:14–30.
• Be diligent and intentional: Proverbs 10:4,Proverbs 21:5.
• Provide for future needs: Proverbs 13:22,1 Timothy 5:8.
• Steward resources wisely: Luke 16:11.

Financial preparation for senior years is more than accumulating resources. It’s about building a life characterized by wisdom, discipline, and purpose. When that season comes, you are not defined by financial stress but by a life that is filled with peace, generosity, and impact. Hopefully, younger family members can serve you without the stress of wondering how to pay for your care.

More resources

Financial Literacy Declines in Older Adults

Gen X Facing a Retirement Crisis

Preparing for Retirement Involves More than Finances

Crown offers many biblically based, practical, and empowering courses and studies to help families find freedom with their finances. Learn how to be a faithful financial steward of the resources God provides.