Faith and Finances

Navigating Retirement Savings in Uncertain Times

by Art Wright

“Here we go again,” I thought to myself, as my brother’s rollercoaster emoji popped up in our text thread. The stock market’s dizzying movement of late seems to mirror the uncertainty in the world around us. As the media starts to mention the word “recession” more frequently, I find myself bracing for another unpredictable ride as we navigate this politically and economically fraught moment. And yet, in some ways, this feels like familiar territory. With the stock market’s gyrations, I can’t help but think of another bumpy time in our recent history. 

When the Covid pandemic rattled markets in early 2020, the drops in our retirement savings were dizzying. I remember watching the precipitous fall from the market’s peak in February as the virus and fear alike spread throughout the world. Even though I have a strong stomach for weathering the market’s daily ups and downs, I had to stop looking at our account balances regularly to avoid feeling nauseous. A large portion of our retirement savings seemed to vanish overnight.

Thankfully, we had a plan. My wife and I have a strategy for retirement savings and stick faithfully to it. Each month we take a portion of our income and invest in low-cost index funds, and always keep our long-time horizon in mind. I rebalance our portfolio when needed and never try to time the market. Thankfully, our retirement savings recovered from the Covid era, and has continued to grow in the years since.

Still, the word “recession” keeps popping up in news stories. It can take a lot of nerve to stay the course. Once again, I find myself returning to a story from Genesis that offers both wisdom and reassurance: Joseph’s years of abundance and famine in Egypt.

The biblical story in which Joseph saves grain for seven years in Egypt (esp. Genesis 41) has long helped me connect my faith and values with long-term retirement investing. For years I have wrestled with difficult questions related to finances: Does saving for retirement simply amount to hoarding? Is it greedy to accumulate money in this way? Isn’t the stock market just “gambling” with one’s money? In the Genesis account, Joseph foresees a famine and is able to set aside an abundance of grain in the years leading up to it. When the crisis hits, Joseph is prepared, not only for his household and for Pharaoh’s; he has enough grain saved to provide for Egyptians and others alike—including his estranged family! He even describes the circumstances as a sort of divine providence that leads him to provide for his family (Gen 50:20). For those of us who are fortunate to be employed right now, it makes good sense to me, theologically speaking, to set aside a portion of our income to prepare for the future. It is good stewardship of our resources when we have enough to save and do so. Moreover, the story of Joseph should remind us that our wealth is not simply for ourselves—we should remember that those of us with the privilege of retirement savings must continue to find ways to share our abundance with others.

From a financial standpoint, investing for retirement is quite different from speculating or gambling. Speculators and gamblers chase easy wins—and often end up with “easy loses”! In saving faithfully for retirement, we shouldn’t try to time the market, whether from fear or greed. It is a fool’s game to do to so, and studies consistently bear out this claim. Our retirement strategies should be more akin to Joseph’s saving of the grain surplus. We stick to our long-term strategy for investing because we hope that one day, when retirement comes, we will have enough to support ourselves and our loved ones, as well as enough to be charitable.

Now we find ourselves in this present moment of global uncertainty. If our faith in the markets and capitalism is shaken, let us use this moment to focus our trust on God’s faithfulness and providence instead. We worship God, not the economy. Our ultimate hope lies with God, not in the account balance of our retirement savings. However, this doesn’t mean we should stop saving. Now is a time to act with wisdom and trust in God’s steadfast providence, and based on principles of investing that make good theological and financial sense.

To the extent that you can, try not to look obsessively at your account balances. Historically, the economy and the markets recover, and those who have several years or decades of retirement savings ahead will benefit from continuing to invest wisely. And it may be helpful to keep in mind that even when the market drops, you haven’t truly lost anything unless you sell. Your retirement account balance may show a lower dollar amount, but you still own the same number of shares as before. Market fluctuations only represent temporary shifts in value, not permanent losses.

Finally, let me say this: the psychology of major market drops can be difficult at times. Periods like this bring about feelings of shame for many of us as we watch large percentages of our retirement savings appear to evaporate. Why didn’t I see this coming? Why didn’t I do something different? It’s easy to beat yourself up over the numbers. Be kind to yourself. 

If you feel like you’re on a rollercoaster right now, take a deep breath. The ride may be bumpy, but you are not alone. Moreover, your worth is not tied to your portfolio. Your value as a human being is derived simply from the fact that you bear the imago Dei—the image of God. You are deeply loved, no matter what the markets do. God is our ultimate hope, and God is calling us to continue to participate in God’s saving work in the world. Stay the course, trust God, and seek ways to share the abundance you have—whether it’s financial or otherwise—with those in need.

Blessings in abundance to you all in these uncertain times. 

**Please note, I am not credentialed investment advisor; nor can I predict the future. These are my personal and theological reflections on what it means to navigate the challenges of retirement savings in this present political and economic moment. If you are anxious about your retirement investments and need advice, please reach out to the amazing folks at CBF Church Benefits Board or a trusted financial planner. Talking about our anxiety aloud can help us calm our nerves and chart a wise course forward.**