Giving in retirement is one of the meaningful ways Christians continue to worship God and support their church and favorite ministries. During your working years, it’s common to use the biblical tithe (10%) as a guideline — often calculated from your paycheck. But in retirement, when income comes from Social Security, pensions, or investment accounts, deciding how much to give is not always as straightforward.
This article will help you think through Biblical foundations, practical approaches, and tax-smart strategies for giving in retirement.
The Biblical Basis for Giving
The Bible consistently calls God’s people to give generously as an act of worship and trust. The commands to give appear throughout Scripture (Genesis 14, Leviticus 27, Malachi 3), but Jesus also reminds us in Luke 11:42 that giving should flow from love, mercy, and compassion — not just numbers. And Paul reminds us in 2 Corinthians 9 that we are enriched in every way to be generous.
Many believers use the tithe as a starting point for their giving. The Israelites gave a Levitical tithe each year (Leviticus 29) and a Festival tithe each year (Deuteronomy 14). Plus, they gave a tithe to the poor every third year (Deuteronomy 14 and 26). They were challenged to give generously.
Why Giving Feels Different in Retirement
When you’re working, calculating a percentage is simple: for example, 10% of your paycheck. But in retirement, income may come from different sources — some of which are partly money you’ve already earned and set aside years ago. This raises natural questions:
- Should I give based on Social Security benefits I already paid into?
- If my IRA withdrawal includes both contributions and growth, do I give on all of it?
- With rental income, should I give from gross rent or after expenses?
These aren’t one-size-fits-all answers. And may be the wrong “starting point” questions. The goal is to give with a cheerful and consistent heart (2 Corinthians 9:7).
Two Approaches to Giving in Retirement
- Give on Total Income (Simple Approach):
Calculate your giving based on the full amount of income deposited into your bank (gross or net). This keeps it straightforward and avoids complex calculations. For many of us we will use a predetermined percentage we believe God would have us give each year. Some retirees may simply give a percentage on all income coming in. Others may prefer to do this plus a percentage on the growth in their portfolio. - A More Detailed Approach
Some retirees prefer to separate contributions they already tithed on during working years from new growth. This means giving only on the “increase” portion of income (earnings, growth, or gains).
Both approaches can honor God. Ultimately, God wants to engage our hearts with His on our giving.
Three Smart and Tax-Efficient Ways to Give in Retirement
Beyond writing a check, there are ways to maximize your giving while also reducing taxes:
- Charitable “Stacking”: Combine two years of giving into one tax year so you can itemize deductions, then take the standard deduction the following year.
- Donating Appreciated Stock: Instead of selling stock and paying capital gains tax, gift shares directly to your church or ministry. They receive the full value tax-free.
- Qualified Charitable Distributions (QCDs): If you’re 70½ or older, you can give directly from your IRA. This counts toward your Required Minimum Distribution (RMD) and avoids taxable income.
These strategies can help you stretch your giving further.
Final Thoughts
Giving in retirement may look different, but it doesn’t have to be complicated. It does require that you seek God’s guidance as a starting point. You can find a method and strategy that works for your situation — while honoring God and blessing others.
If you’d like help creating a retirement giving plan that balances generosity and tax efficiency, our team is here to guide you.