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Ask Dave

Clergy Opt Out Of Social Security?

Rex is a pastor who doesn't think Social Security is the best retirement plan. Should he opt out and go for something else?

QUESTION: Rex is a pastor and wants to know if he should opt out of Social Security on the pastoral portion of his income.  Where should he save for retirement?

ANSWER: You should opt out of everything you possibly can when it comes to Social Security.  In your case, you can only opt out of the pastoral portion of your income.  You have to do this for religious reasons; you have to be a conscientious objector to the system.  As a Christian you can easily do this.  God tells us to be wise with the resources he gives us.  Giving money to a system that’s broken, like Social Security, is not wise. 

However, you have to put that money into a Roth IRA, long-term disability insurance, and life insurance.