Employer-Matching Increases Retirement Contributions

Have you ever heard the story of the man who trusted God to save him from a flood so much that he responded to each offer of help God sent via a truck, a boat and even a helicopter, with the phrase, “It’s OK, I will trust in God.”

The man was surprised when he drowned. Upon arriving in heaven, he asked why God had not saved him. God reminded him about the truck, boat and helicopter, three vehicles He’d sent as salvation opportunities. This is a story about faith — and about missing God’s help when it comes in practical form.

The truth is, we sometimes do the same thing. God provides tools, opportunities and resources to help us thrive — but we have to take action and actually begin using them.

When I learned that nearly a third of pastors in the Virginia United Methodist Conference (VAUMC) are not taking full advantage of the conference’s offer to match their retirement contributions up to a certain amount, I was genuinely surprised and curious whether this was unique to pastors — and it turns out they are not alone in leaving matching funds on the table.

This article isn’t just about pastors, but how a whole lot of us are passing up the truck, boat and helicopter, the equivalent of God providing an offer to help us prepare for retirement.

According to a 2024 analysis about employer-matched retirement programs by Vanguard, an international investment firm:

• 48% saved more than the amount required to get the full match.
• 18% of participants saved enough to receive the full employer match.
• 34% saved below the employer match level, with some not contributing at all.
  

For those who have invested money in the stock market, earning a steady 15%-per-year return would be delightful. But that kind of return can never be guaranteed. In comparison, investing in a matching account gets a 100% return on day one! Where else can we get that kind of return? Admittedly, the employer-matched amount is often limited to 3% to 5% of your income.

A couple of use scenarios:

• If a 4%-match is applied to a $40,000 salary, we would be investing $1,600 (4% of $40K), the employer-matched amount would be $1,600, and we could invest that much more that year.
• 4% of a $100,000 salary means we would invest $4,000 per year from our paycheck, which would be doubled to $8,000 through the employer-matched amount!

In summary, employer-matching allows you to expedite the growth of your annual investment. At the same time, when a salary is lower, it can be hard to justify or even accomplish putting aside the matchable amount from each paycheck. That is where tracking spending comes into play and focusing on living beneath rather than above our means.

Whether part-time employees qualify for employer-matching depends on their company’s policy. Those who are retired are not eligible for employer-matching, but have you taught your kids, grandkids or your younger friends about this gracious God-given offer of a practical tool – think truck, boat or helicopter – to help improve financial standing in life?

This isn’t about greed. It’s about making the most of what is being offered.

In the “Parable of the Talents,” the “good and faithful servants” are the ones who grew the master’s money, rather than burying or hiding it. If we can provide well for our retirement, we can be much more generous later on. Right now, who are normally the most generous givers in our congregations?

The reality is that most often they are our seniors, the well-to-do, who took full advantage of the opportunities God gave them. They were good stewards and can now be generous givers. So let’s thank God for the very generous offer of matching funds, be good stewards of the gifts God has bestowed, and take advantage of that financial helicopter.

When we make wise choices with what God provides, we are not just securing our own future — we are freeing ourselves to give more generously, live more faithfully and bless others. Stewardship isn’t just about giving — it is about trusting God enough to act on the opportunities God provides.

By the Rev. Brad Duty, Foundation Services Advisor
Images: JuSun/iStock & Dilok Klaisataporn/iStock