If
you are late starting to
save for retirement …
consider these steps
By Rev. Dr. Patricia L. Hunter, CFP ®
Everyone is familiar with the advice that most
financial planners share about saving for
retirement — the best time to start planning and
saving for retirement is in your 20s.
For any number of reasons, far too many people
do not get started that early.
R
etirement can seem so far in the future that people are not
motivated to begin saving. After all, at 25, you can tell yourself
that you have plenty of time.
Many pastoral leaders understand that choosing to serve God
often means accepting lower compensation than other professions
with comparable training and education. Even managing day-to-day
expenses can be a challenge, and saving for retirement is viewed as
another expense that squeezes the budget.
Even for those who do get an early start, their savings might have
been interrupted (or spent) because of unforeseen life circumstances.
Whatever the reason, if you find yourself in the position of having
to play catch-up in your 40s and 50s — even though you most likely
cannot make up for the years you’ve lost — there are steps you can take
to put yourself in a better position for your retirement.
Start saving now
This is the most important step you can take — and save as much as
you can. Every day that goes by without you saving only escalates the
problem, and you can’t afford to wait another year or three years and
look back with regret yet again.
Don’t spend time beating yourself up for not getting started. Take
action now, and recognize that you will need to cut unnecessary
expenses and do some sacrificial saving.
Maximize your contributions to your employer-based 403(b)
retirement plans. If your church or faith-based organization offers
a matching plan, make a commitment to contribute that amount or
percentage so you can take advantage of the employer’s matching
contribution. Arrange to have the money automatically deducted
from your paycheck. For 2020, you can contribute up to $19,500 to
an employer 403(b) plan, and if you are 50 or older, you can make an
additional $6,500 catch-up contribution.
Be sure to save any salary increases or honoraria from guest
preaching, workshops or other additional income.
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CHURCH EXECUTIVE | JAN / FEB 2020