Our client Fidelity Charitable recently published results from a study we conducted for them earlier this year on charitable living and the new retirement.
As more and more Baby Boomers are retiring, including 4 million reaching the pivotal retirement age of 65 in 2024, it’s fascinating to see what they plan to do with this next chapter of their lives. Here, we found that Americans are changing their attitudes toward retirement and are ready to embrace their next chapter through active social lives, giving back, and volunteering. Notably, 78% of pre-retirees and retirees prioritize charitable giving.
Further highlights include the following:
Of the donors we surveyed, over half of pre-retirees (56%) and retirees (59%) gave $1,000 or more—and 17% of all donors gave $5,000 or more—to IRS-qualified charities in 2023.
- However, donors may be missing out on tax-smart opportunities. Only 1 in 5 donors aged 50+ are aware of tax-advantaged giving methods.
Retirees are actively giving back through volunteerism, often dedicating significant time and experiencing meaningful benefits, while pre-retirees show even stronger intentions to volunteer. In the last year, over two-thirds of pre-retirees (71%) and over half of retirees (55%) volunteered.
Takeaways
Opportunities exist for financial professionals to both discuss charitable planning as part of retirement and financial planning and to educate their clients on charitable giving vehicles. Additionally, nonprofit organizations should take advantage of this group’s interest in volunteerism by offering plenty of opportunities to keep retirees engaged.
For this study, we surveyed more than 2,500 people, ages 50–80 who share in or make giving decisions in households that donate $500 or more per year to charities. We asked pre-retirees and retirees how they plan for and participate in charitable activities.
For a more detailed look, download the full report [PDF].
Fidelity Charitable is a long-time client of ours. In 2022, we shared studies on both giving in the workplace and impact investing that we conducted for them. Learn more about how we work with Fidelity Charitable here.
