S’pore may need to raise retirement age to 68, says Lim Boon Heng
By Channel NewsAsia, Updated: 28/10/2010
SINGAPORE: Singapore’s Minister in the Prime Minister’s Office Lim Boon Heng has indicated that the country may need to raise its retirement age to 68.
Mr Lim, who’s in Finland accompanying President S R Nathan on his state visit there said Singaporeans need to work longer as their life span increases.
That is because they need to accumulate more for their old age.
Mr Lim who is also the minister in charge of issues on ageing in Singapore, cited Finland as an example, and will use this trip as an opportunity to study how the Finnish are dealing with their ageing population.
Mr Lim added there are areas that Singapore can emulate. One of which is to mobilise the elderly to organise themselves and form retirement communities that can provide mutual support and friendship.
A law that will make it mandatory for employers to offer re—employment to workers beyond the age of 62 will be in place by 2012.
"We are raising the retirement age, through the process of re—employment from the current 62 to 65 in January 2012. Beyond that we would have to examine how we can further raise the retirement age. In Finland, they have raised it to 68, so it gives us an indication about where we should be heading.Because the Finns are not living longer than us, we have a life expectancy of about 80, I think the finns are little less than us," said Mr Lim.
—CNA/ac
Showing posts with label retirement. Show all posts
Showing posts with label retirement. Show all posts
Thursday, October 28, 2010
Monday, August 23, 2010
Pastors must plan for retirement
Pastors and Retirement
by John C. LaRue, Jr.
posted 3/01/1998
Pastors must plan for retirement just like other American workers. But besides social security, what types of retirement plans are pastors actually contributing to? And at what age do most pastors think they'll have enough money saved to retire? Research conducted for Your Church reveals the following information about pastors and retirement.
Social Security: No Longer a Given
According to our research, the typical pastor is 47 years old and about 19 years away from collecting full social security. That benefit may be in jeopardy, however, due to life expectancy increases and a huge group of baby boomers who will start collecting social security in 2012. If the fund comes up short, future benefits may be reduced, the retirement age may go higher, and social security taxes may be raised.
Unlike the average American worker, pastors can opt out of social security. Though our study did not measure how many pastors have chosen this option, we do know that 39 percent of pastors' churches pay the employer part of social security self-employment tax, averaging $3,198 for senior pastors, and $2,109 for solo pastors.
How Much to Save
Social security isn't enough for most pastors to retire on. They should also contribute to a retirement plan. Financial planners recommend saving four to eight times the household's peak annual earnings in order to retire at the same standard of living. Pastors should save the following money for retirement (for planning purposes, these figures should be adjusted for inflation):
Annual Salary Amount to Save
Married, with non-working spouse
$39,180 $155,000 - 310,000
Married, spouse works part-time
$46,320 $185,000 - 370,000
Married, spouse works full-time
$61,690 $250,000 - 500,000
Pensions, IRAs, and Other Plans
About 89 percent of the pastors surveyed are involved with a retirement program. Churches help 7 of 10 (71%) pastors with this by contributing to a pastors' pension plan. Typically, senior pastors receive $4,286 a year, and solo pastors get $3,486 a year.
Sixty-one percent of pastors have a denominational pension. The median value of such programs is $30,000. Graph 3 shows how the value of denominational pensions varies by the base salary and age of pastors.
Such figures show that pastors must rely on more than a denominational pension to maintain their standard of living during retirement. Our survey shows that 59 percent of pastors are contributing to a retirement plan other than a denominational pension. Twenty-one percent contribute to an IRA, 21 percent to a 403(b) plan, and 18 percent to other retirement plans.
In addition, 34 percent of pastors' spouses have a retirement plan.
When to Retire
When asked when they believed they would be financially ready to retire, 46 percent of the pastors who responded said at age 65. About 18 percent thought they'd be able to retire before age 65. About 36 percent said they didn't think they'd be able to retire until after age 65. Seven percent thought they'd have to wait until after age 70.
The Study
In 1996, Your Church mailed 1,200 surveys and 594 were returned, for a response rate of 52 percent. With those samples, results are considered accurate to within plus or minus 4 percent.
John C. LaRue, Jr., is vice president of research and development for Christianity Today International, in Carol Stream, Illinois. He may be reached by e-mail atwebmaster@christianitytoday.com. Past Special Reports can be found on the Web at:http://www.ChristianityToday.com/cbg/features/report.html.html.
Copyright © 1998 by the author or Christianity Today International/Your Church magazine. For reprint information call 630-260-6200 or e-mail yceditor@yourchurch.net.
Mar/Apr 1998, Vol.44, No. 2, Page 80
by John C. LaRue, Jr.
posted 3/01/1998
Pastors must plan for retirement just like other American workers. But besides social security, what types of retirement plans are pastors actually contributing to? And at what age do most pastors think they'll have enough money saved to retire? Research conducted for Your Church reveals the following information about pastors and retirement.
Social Security: No Longer a Given
According to our research, the typical pastor is 47 years old and about 19 years away from collecting full social security. That benefit may be in jeopardy, however, due to life expectancy increases and a huge group of baby boomers who will start collecting social security in 2012. If the fund comes up short, future benefits may be reduced, the retirement age may go higher, and social security taxes may be raised.
Unlike the average American worker, pastors can opt out of social security. Though our study did not measure how many pastors have chosen this option, we do know that 39 percent of pastors' churches pay the employer part of social security self-employment tax, averaging $3,198 for senior pastors, and $2,109 for solo pastors.
How Much to Save
Social security isn't enough for most pastors to retire on. They should also contribute to a retirement plan. Financial planners recommend saving four to eight times the household's peak annual earnings in order to retire at the same standard of living. Pastors should save the following money for retirement (for planning purposes, these figures should be adjusted for inflation):
Annual Salary Amount to Save
Married, with non-working spouse
$39,180 $155,000 - 310,000
Married, spouse works part-time
$46,320 $185,000 - 370,000
Married, spouse works full-time
$61,690 $250,000 - 500,000
Pensions, IRAs, and Other Plans
About 89 percent of the pastors surveyed are involved with a retirement program. Churches help 7 of 10 (71%) pastors with this by contributing to a pastors' pension plan. Typically, senior pastors receive $4,286 a year, and solo pastors get $3,486 a year.
Sixty-one percent of pastors have a denominational pension. The median value of such programs is $30,000. Graph 3 shows how the value of denominational pensions varies by the base salary and age of pastors.
Such figures show that pastors must rely on more than a denominational pension to maintain their standard of living during retirement. Our survey shows that 59 percent of pastors are contributing to a retirement plan other than a denominational pension. Twenty-one percent contribute to an IRA, 21 percent to a 403(b) plan, and 18 percent to other retirement plans.
In addition, 34 percent of pastors' spouses have a retirement plan.
When to Retire
When asked when they believed they would be financially ready to retire, 46 percent of the pastors who responded said at age 65. About 18 percent thought they'd be able to retire before age 65. About 36 percent said they didn't think they'd be able to retire until after age 65. Seven percent thought they'd have to wait until after age 70.
The Study
In 1996, Your Church mailed 1,200 surveys and 594 were returned, for a response rate of 52 percent. With those samples, results are considered accurate to within plus or minus 4 percent.
John C. LaRue, Jr., is vice president of research and development for Christianity Today International, in Carol Stream, Illinois. He may be reached by e-mail atwebmaster@christianitytoday.com. Past Special Reports can be found on the Web at:http://www.ChristianityToday.com/cbg/features/report.html.html.
Copyright © 1998 by the author or Christianity Today International/Your Church magazine. For reprint information call 630-260-6200 or e-mail yceditor@yourchurch.net.
Mar/Apr 1998, Vol.44, No. 2, Page 80
Help your pastor prepare for and transition into retirement
Preparing for Pastor's Retirement
Whether your pastor is 30 or 60 years old, now is the time to begin preparing for your pastor's retirement. It is difficult to intentionally plan for the departure of someone you know and love. But we all know that growing older is part of life. And at some point, your pastor will no longer be able to do the work of pastoral ministry on a full-time basis. So even for members of the clergy, retirement is inevitable.
The most loving and responsible thing you can do is prepare for your pastor's retirement.
Issues With Pastor's Retirement
While everyone faces questions about retirement, pastors have some unique issues that need to be addressed. As you work with your pastor to create a retirement package, consider the following.
When your pastor retires, he will probably have to relocate. In most cases it is not good for either the pastor or the church for the retiring pastor to remain in the area. When a new minister replaces the retiring pastor people in the congregation will have a difficult time transitioning to the new leadership if the previous pastor is still in the area. They will feel conflicted emotionally and think they are betraying the former pastor if they adapt to changes proposed by the new pastor.
Additionally, many pastors occupy the church's parsonage until their retirement. While some people will object to "kicking out" your retiring pastor, he obviously has to move before you can hire a new shepherd. A pastor's retirement package needs to make provision for this inevitability. He may need a severance amount so that he can purchase a new home somewhere else. Or, a church can help him make a downpayment on a house in Florida (or wherever) ten years before he retires.
His health insurance may not go with him. In order to get the least expensive insurance coverage, you may be tempted to purchase health insurance that only covers your pastor while he or she lives in your area. But it's important that you think long-term. Will he be able to take his insurance with him when he retires? If not, he may be forced to remain in the area. His dreams of retiring to the country or moving back to his childhood home may go unfulfilled if he can't find adequate and affordable insurance.
Your pastor's retirement may be complicated by social security. In the United States, a pastor can opt out of social security tax deductions from his salary. As you prepare your pastor's retirement package, make sure you understand the consequences of his decision. If he opts out of social security, your church should still invest the 7 1/2 percent of his income that you would have sent to the IRS. Start some type of pastor's retirement account so that he will have some money when it's time to retire.
Your pastor may not be ready for full retirement. Most pastor's don't want to retire to a little community in Florida and play shuffle board for the rest of their lives. They want to be involved in ministry. But it's possible that their clergy retirement funds won't be sufficient to support anything else. Perhaps you could consider supporting your retiring pastor like a missionary so that he or she can do short-term missions trips, serve as an ambassador for a mission organization, or become a chaplain.
He may be tempted to delay starting a retirement account. Pastors don't get paid a lot - most pastors any way. Generally speaking, though, no matter how small his salary it is essential that he start saving now for retirement.
These are among the most significant issues surrounding your pastor's retirement. The best way to address these issues is to have open and frank conversations with your pastor. But please know two things as you talk with your pastor about retirement.
You may feel hurt or offended when your pastor talks about a life without your church. This is normal. It's kind of like hearing your parents talk about all the fun they'll have after you and your siblings are grown up. This is a good thing - it shows you love and respect your pastor. Don't, however, allow your feelings to cloud your judgement when considering issues of your pastor's retirement.
As hard as it is for you to think about your pastor's retirement, it's even more difficult for him. He or she may even try to avoid talking about retirement. But for his own sake, you need to pursue these conversations.
A Word to Pastors
Pastor, please allow me a moment to speak directly to you about pastor's retirement. I can't imagine the conflicting feelings you must be experiencing as you consider the end of your pastoral ministry. When you transitioned from one church to another earlier in your ministry you had something to draw you forward... something to lead you away from your current location. But as you prepare for retirement, you may not have someplace to be, so to speak. You may not have a deadline to start at a new ministry... nothing forcing you to pack your boxes and move on.
But you know what you need to do for your church. Your congregation is experiencing grief not unlike that of a grieving widow. And prolonging your departure forces your church to extend their grief - like a woman watching the slow decline of her husband's health. She knows that death is coming, but she doesn't know when. You've walked many people through this grieving process. You know how difficult it is for the surviving spouse. Don't do that to the congregation you love - the people you served for years.
I've seen far too many pastors linger beyond their time. They end up damaging the very relationships they spent years building. Don't do that to yourself. Don't do that to the church you love. As hard as it is, when it's time to go, pack your boxes and go.
Pastor's Retirement Conclusion
For some pastors retirement is too far off to think about. For others the thought of leaving ministry is too painful to consider. But eventually, one way or another, your pastor will leave your church. For many, that means retirement. Help your pastor prepare for and transition into retirement. And the best way to do that is to start now by dedicating part of his salary to pastor's retirement.
Whether your pastor is 30 or 60 years old, now is the time to begin preparing for your pastor's retirement. It is difficult to intentionally plan for the departure of someone you know and love. But we all know that growing older is part of life. And at some point, your pastor will no longer be able to do the work of pastoral ministry on a full-time basis. So even for members of the clergy, retirement is inevitable.
The most loving and responsible thing you can do is prepare for your pastor's retirement.
Issues With Pastor's Retirement
While everyone faces questions about retirement, pastors have some unique issues that need to be addressed. As you work with your pastor to create a retirement package, consider the following.
When your pastor retires, he will probably have to relocate. In most cases it is not good for either the pastor or the church for the retiring pastor to remain in the area. When a new minister replaces the retiring pastor people in the congregation will have a difficult time transitioning to the new leadership if the previous pastor is still in the area. They will feel conflicted emotionally and think they are betraying the former pastor if they adapt to changes proposed by the new pastor.
Additionally, many pastors occupy the church's parsonage until their retirement. While some people will object to "kicking out" your retiring pastor, he obviously has to move before you can hire a new shepherd. A pastor's retirement package needs to make provision for this inevitability. He may need a severance amount so that he can purchase a new home somewhere else. Or, a church can help him make a downpayment on a house in Florida (or wherever) ten years before he retires.
His health insurance may not go with him. In order to get the least expensive insurance coverage, you may be tempted to purchase health insurance that only covers your pastor while he or she lives in your area. But it's important that you think long-term. Will he be able to take his insurance with him when he retires? If not, he may be forced to remain in the area. His dreams of retiring to the country or moving back to his childhood home may go unfulfilled if he can't find adequate and affordable insurance.
Your pastor's retirement may be complicated by social security. In the United States, a pastor can opt out of social security tax deductions from his salary. As you prepare your pastor's retirement package, make sure you understand the consequences of his decision. If he opts out of social security, your church should still invest the 7 1/2 percent of his income that you would have sent to the IRS. Start some type of pastor's retirement account so that he will have some money when it's time to retire.
Your pastor may not be ready for full retirement. Most pastor's don't want to retire to a little community in Florida and play shuffle board for the rest of their lives. They want to be involved in ministry. But it's possible that their clergy retirement funds won't be sufficient to support anything else. Perhaps you could consider supporting your retiring pastor like a missionary so that he or she can do short-term missions trips, serve as an ambassador for a mission organization, or become a chaplain.
He may be tempted to delay starting a retirement account. Pastors don't get paid a lot - most pastors any way. Generally speaking, though, no matter how small his salary it is essential that he start saving now for retirement.
These are among the most significant issues surrounding your pastor's retirement. The best way to address these issues is to have open and frank conversations with your pastor. But please know two things as you talk with your pastor about retirement.
You may feel hurt or offended when your pastor talks about a life without your church. This is normal. It's kind of like hearing your parents talk about all the fun they'll have after you and your siblings are grown up. This is a good thing - it shows you love and respect your pastor. Don't, however, allow your feelings to cloud your judgement when considering issues of your pastor's retirement.
As hard as it is for you to think about your pastor's retirement, it's even more difficult for him. He or she may even try to avoid talking about retirement. But for his own sake, you need to pursue these conversations.
A Word to Pastors
Pastor, please allow me a moment to speak directly to you about pastor's retirement. I can't imagine the conflicting feelings you must be experiencing as you consider the end of your pastoral ministry. When you transitioned from one church to another earlier in your ministry you had something to draw you forward... something to lead you away from your current location. But as you prepare for retirement, you may not have someplace to be, so to speak. You may not have a deadline to start at a new ministry... nothing forcing you to pack your boxes and move on.
But you know what you need to do for your church. Your congregation is experiencing grief not unlike that of a grieving widow. And prolonging your departure forces your church to extend their grief - like a woman watching the slow decline of her husband's health. She knows that death is coming, but she doesn't know when. You've walked many people through this grieving process. You know how difficult it is for the surviving spouse. Don't do that to the congregation you love - the people you served for years.
I've seen far too many pastors linger beyond their time. They end up damaging the very relationships they spent years building. Don't do that to yourself. Don't do that to the church you love. As hard as it is, when it's time to go, pack your boxes and go.
Pastor's Retirement Conclusion
For some pastors retirement is too far off to think about. For others the thought of leaving ministry is too painful to consider. But eventually, one way or another, your pastor will leave your church. For many, that means retirement. Help your pastor prepare for and transition into retirement. And the best way to do that is to start now by dedicating part of his salary to pastor's retirement.
Subscribe to:
Posts (Atom)
