Several years ago, I had the privilege of attending the Lilly Endowment’s ‘National Initiative to Address Economic Challenges Facing Pastoral Leaders’ gathering as part of our Church of God C.A.R.E. team (Clergy Advocacy Resource Effort). A major goal of the gathering was to encourage strategic thinking and creative development of programs to address the economic challenges facing pastoral leaders and families in our care.
One glaring takeaway is what we often experience at Servant Solutions as we have discussions with pastors and church workers: They were unrealistic about their finances, especially in the area of retirement planning. However, a more telling (and realistic) assessment came from the spouses of pastors. In referencing the infographic below, one can see the typical pastor’s family financial picture is not as optimistic from the spouse’s perspective.
The concerns addressed cover critical areas such as compensation issues, savings rates, standard of living, and the absence of emergency funds. These are concerns for most families. However, the highest concern for pastor spouses was around retirement readiness. Solid financial and retirement planning is a must, especially with the challenges facing pastoral families.
Here are some of the significant findings of the Lilly study that support the concerns in the infographic below:
The most pervasive issue is adequate retirement savings/planning.
Salary/compensation for clergy has historically been modest; however, in aggregate, clergy compensation has diminished in recent decades compared to other identifiable occupations.
The most drastically changed factor in the past 15 years is the rapid rise in educational debt.
While pastoral leaders tend to express job satisfaction, a significant percentage have seriously considered leaving the ministry because of financial challenges/stress.
These issues are deeply systemic. It will take the integrated attention of the whole church body to address these issues in a meaningful, long-term manner.
While financial literacy needs to be increased for pastoral leaders, it is also imperative that the lay leadership join with the clergy in understanding and addressing the issues.
It is good to know what the concerns and issues are, but what do we do about them? We have found that many pastors experience shame about their financial circumstances, so many follow human nature and ‘hope for the best’. As you might imagine, this is not a responsible strategy. Some pastors are resistant, and in some cases even unwilling, to comprehend their financial realities and take the necessary steps forward to better financial health. Even more say, “I’ll just work my whole life” and ignore retirement planning altogether, not realizing most are forced to retire due to issues they cannot control (family illness, aging parents, job loss, etc.). Don’t ignore reality. Get help.
Consider the following questions:
Do you have concerns about credit card debt, student loan payments, or how to save for college?
Have you opted out of Social Security/Medicare and have no idea how you will deal with retirement income and healthcare in your retirement years?
Are you saving enough for retirement so you won’t experience a significant drop in your standard of living (which may already be low)?
Are you spending all of your income now, but are not saving near enough for the future?
Do you know of anyone that is experiencing the hardships above and needs some sound, Christ-centered financial guidance?
At Servant Solutions, we have a dedicated team that is passionate about financial and retirement planning. We can help! We offer FREE financial planning services to every Servant Solutions Retirement Plan member! This is a valuable benefit, as the industry average for a financial plan is $1,500. Our Financial Roadmap has made a healthy impact for many who have taken advantage of it.
Are you too optimistic about your finances? To answer that question, a good suggestion is to have a serious planning session with your spouse about the status of your income/expenses/savings and gain their perspective. The first step to knowing where you want to go is to gain a realistic perspective of where you currently are. This can only happen through proactive planning, preferably with a financial planner who can help you navigate your unique financial challenges. Is it time for you to take the next step? Please call or email us to get started on the path to better planning.
