When the Church Isn’t Contributing to Your Retirement: How to Start the Right Conversation

Most pastors don’t go into ministry for the money.
That’s part of what makes this conversation so hard.

You’re not trying to squeeze more out of the church. You’re trying to plan wisely for the future, and maybe for the first time, you’re realizing no one else is.

The budget meeting is coming up. The board is reviewing salaries. And you’re looking at your 403(b) statement wondering why the balance isn’t growing faster. Then it hits you: the church has never contributed to it.

For pastors who only ever worked in vocational ministry, that realization can be especially surprising. Many have never experienced a secular workplace where employer retirement contributions are the norm. In most 401(k) plans, companies automatically match a portion of what employees invest. So when a pastor discovers that their church has never done the same, it’s not just disappointing. It’s eye-opening.

For some, that moment comes early. For others, it doesn’t come until their fifties, when catching up feels impossible. But it’s never too late to start a healthy, informed conversation about retirement contributions.

Why This Matters More Than Most Pastors Realize

Unlike secular employees, pastors have a unique tax setup that makes intentional retirement saving essential.
You’re considered an employee for income taxes but self-employed for Social Security under SECA. That means you’re already paying double what most people do into Social Security, and if the church isn’t contributing to your 403(b), you’re shouldering the entire load.

Even a modest church match can make a remarkable difference over time.
A $200 monthly contribution, with average market returns, could grow to more than $100,000 in twenty years. Multiply that by the thousands of churches across the country not contributing, and it’s easy to see why so many pastors retire unprepared.

This isn’t about greed. It’s about stewardship of your future, your family, and the ministry you’ve poured your life into.

Understanding the Gap

In the corporate world, it’s common to see employer matches between 3–6% of salary.
In ministry, many churches contribute nothing at all. Some simply don’t know they can. Others assume pastors handle retirement privately, or that denominational benefits automatically apply (they often don’t).

The result?
Two pastors can serve faithfully for 30 years and retire in drastically different financial positions, not because of calling or competence, but because of how their board structured compensation.

A conversation can change that. But it has to start well.

How to Have the Conversation With Your Board

Here’s a simple framework that helps shift this from an awkward ask to a shared stewardship discussion.

1. Start With Education, Not Emotion

Your goal isn’t to complain; it’s to inform. Most board members aren’t aware of how clergy compensation works. Bring clarity:

“As a pastor, I pay both sides of Social Security through SECA and I’m responsible for funding retirement unless the church helps. I’d love for us to talk about ways we can strengthen this area going forward.”

When you start with understanding instead of frustration, you invite partnership.

2. Show Comparison, Not Competition

Provide context. You don’t need to guilt the board; you just need to give perspective.
Share denominational or nonprofit benchmarks. For example:

“Many churches our size contribute 3–5% to their pastor’s 403(b). That’s similar to what most nonprofits offer their employees.”

or

“According to SHRM’s 2025 Employee Benefits Survey, the average employer match for traditional 401(k) plans was 6.30 % of pay.”

Numbers make the need tangible and keep it from feeling personal.

3. Frame It as Shared Stewardship

You’re not asking for a perk; you’re inviting the board to participate in responsible stewardship.

“This is part of making sure our ministry is healthy long-term. A strong plan helps us avoid financial pressure later.”

Boards care about sustainability. When they see that this protects both the pastor and the church, they’re more likely to act.

4. Ask During the Right Season

Timing matters. The best moment to bring this up isn’t in the middle of a crisis; it’s during budget planning or annual compensation review.
That’s when numbers are already on the table and hearts are usually open to strategy.

5. Offer Practical Options

If the budget feels tight, suggest a phased approach. For example:

• Start with a 2% contribution this year and plan to increase by 1% annually.

• If cash flow is limited, discuss a one-time year-end contribution.

• Or explore denominational or third-party retirement programs that handle the setup with minimal administrative work.

What This Builds Over Time

When pastors and boards talk about retirement with honesty and humility, trust grows.
The board sees the pastor not as a burden but as a partner in stewardship.
The pastor gains peace of mind, knowing they’re not quietly falling behind.

These conversations also set a precedent for future staff, helping the next generation of ministers start stronger than the last.

A Biblical Perspective on Provision

Scripture reminds us that “a worker is worthy of his wages” (Luke 10:7). That’s not about entitlement; it’s about recognizing the value of faithful labor and ensuring provision that honors both the work and the worker.

Retirement planning isn’t a lack of faith; it’s an act of wisdom. It’s one more way we say, “I’m thinking beyond this season so I can finish well.”

Final Thought

If your church doesn’t currently contribute to your retirement, don’t wait for someone else to start the conversation.
Do it graciously. Do it clearly.
And do it with the quiet confidence that comes from stewardship, not selfishness.

Preparing for the future isn’t about leaving ministry. It’s about ensuring you can serve for as long as God calls you, without financial fear standing in the way.

Disclaimer: This post is for educational purposes only and should not be considered individualized financial, tax, or legal advice. Pastors should consult a qualified professional for personalized guidance.