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Retirement Planning for Pastors

Discerning the financial and tax benefits—and drawbacks—of numerous retirement plans.

Introduction

One in five pastors do not save for retirement, revealed a National Association of Evangelicals (NAE) survey of more than 4,000 pastors nationwide. And among those who do, they don't save nearly enough.

Asked about the amounts saved thus far for retirement, whether through individual retirement accounts (IRAs), 403(b) or 401(k) plans, pension funds, or other options, 21 percent said "Nothing." The median amount for those who have set aside something was a meager $30,000—not nearly enough to cover living expenses for someone who may live 10, 20, or even 30 years after they retire. Perhaps most troubling is that a Barna study showed the median age for a US pastor in 2017 was 54 years old, a sign that many who are heading toward the home stretches of their careers may have little sources of income to live off of after those careers.

And even with 80 percent of ...

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Richard R. Hammar is an attorney, CPA and author specializing in legal and tax issues for churches and clergy.

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Posted:
  • October 13, 2017