| A nationwide survey of 4,000 pastors conducted six years ago revealed a shocking trend: 33 percent had set aside less than $10,000 for retirement—and 29 percent had no retirement savings. Many pastors may not wish to think about life after ministry, but the reality is that they must. Unlike most employees, ministers are considered self-employed for Social Security and must pay self-employment tax rather than Social Security and Medicare taxes. As we all know, if you do not pay Social Security tax when you work, you cannot collect it when you retire. A pastor in New York, unaware his church was not withholding Social Security taxes on his behalf, sued his church when he discovered he was not eligible for any payments upon his retirement in 2017. Along with pointing out potential legal issues related to withholding, this case also demonstrates that pastors need assistance with planning for retirement. Here are three resources that will help your church provide such assistance: • “Retirement Savings and the Rule of 72s”by attorney Richard Hammar will help your pastor understand the power of compounding. • Learn how retirement plans offered by churches can go a long way toward encouraging such savings. • Understand how pastors are treated for Social Security and Medicare purposes. | 