Pastor, are you ready for retirement?

Pastor, are you ready for retirement?

Posted on by Matthew Laker

Pastor, are you ready for retirement?

The work that Pastors and Church staff do is essential. The reality is in Canada, 75% of people have less than 100K saved for retirement, and many are having to keep working or go back to work.

The reality is what retirement looks like is also shifting. For Ministry leaders, you will always do ministry, but it will look different for many. 

At the same time, you are not doing ministry for the income, but as you steward what you have, you need to plan for that retirement. 

At some point, the church is going to stop paying you, then what.  

How much you need depends on your lifestyle, needs and wants. This is why when I sit down with people and create a financial plan, it is different for each person. 

Are you one of the 50 percent of Canadians who do not have a retirement plan? It can be scary as we get closer. This is where I can help. We can sit down and develop a plan, and I will coach you along the way to reach those goals. That is free because we want to see you succeed.

Clergy Residence Deduction

Clergy Residence Deduction

Posted on by Matthew Laker

Clergy Residence Deduction

I was in a meeting (September 2021), and the speaker, among other things, talked about the Clergy Residence Deduction and how they had met a few people recently who did not know about this and qualified. 

If you are a clergy member in Canada, you may be eligible for taxable benefits called clergy residence deduction (CRD). 

Who is this for?

Those who hold traditional roles where theological training is required and religious duties are expected from the position. This individual 

is in charge of or ministering to a congregation or is engaged in full-time administrative service by appointment of the denomination

Each group may be slightly different on terms and who can use this, so I highly recommend you speak with your religious group leader, as they may limit who can get it. AS well don’t forget an accountant. 

You will often have to provide a job description of your responsibilities. 

How does it work?

First, get this form – https://www.canada.ca/en/revenue-agency/services/forms-publications/forms/t1223.html

Second, Start filling it out. 

Third, the deduction allows for your home’s fair market rental value to be excludable from your gross income for tax purposes. 

The bottom line is it drops the income you are taxed on.  

If you are renting your home, this still applies to you. Just fill in what you paid for rent. (You may need a letter from your landlord)

There are some possibilities of increased reduction if the church owns the house and receives it as part of the financial package.  

You can have it taken off at the source, or you can receive a refund at the end of the tax year. 

Before sending in the forms, make sure that you save a copy for your own records.