New Data: Pre-Retirees and Retirees Prioritize Charitable Giving

Donors who are age 50 and older are planning to engage in charitable giving during retirement with 78% of pre-retirees and retirees responding that they plan to prioritize it.

Beyond providing financial support for charities, pre-retirees and retirees are also actively volunteering. More than two-thirds of pre-retirees (71%) and 55% retirees said that they volunteered during the past year. This could indicate that the trend toward volunteerism may continue to grow as the current group of pre-retirees transitions into retirement. 

The data is from new polling of 2,500 people ages 50 to 80, including 844 donors with investable assets of at least $1 million for the 2024 Charitable Living And The New Retirement polling from Fidelity Charitable. To qualify for the survey, respondents had to contribute at least $500 or more per year to charitable organizations. The study asked pre- retirees and retirees how they plan for and participate in charitable activities.

Of the donors surveyed, 56% of pre-retirees and 59% of retirees reported giving $1,000 or more and 17% of all donors gave $5,000 or more — to IRS-qualified charities during 2023. 

Just sort of one-quarter of pre-retirees and retirees (24%) said charitable giving is much more important than other financial priorities. 

The data showed that of those retirees who volunteer, more than one in four (27%) report doing so for at least 13 hours a month, indicating commitment to their causes. Nearly nine in 10 retired respondents who currently volunteer agree that volunteering is a way to remain active (88%) and connected (91%). 

The research showed that many retirees rely on advisors for financial planning, but only half (51%) have discussed charitable giving with an advisor. With their knowledge of tax-smart charitable planning methods low, the audience is ripe for additional guidance, according to authors of the report.

While most pre-retirees and retirees are familiar with at least one vehicle or method used to support charities financially, 21% are unaware of any. Awareness of what can be donated is also low. For example, just one in three pre-retirees and retirees (32%) are aware that they can donate appreciated assets such as stocks. 

Approximately two-thirds of pre-retirees (69%) and retirees (65%) work with an advisor financial advisor, certified public accountant, or attorney. While most pre-retirees and retirees are familiar with at least one vehicle or method used to support charities financially, 21% are unaware of any. Six in 10 (61%) pre-retirees and 51% of retirees report ever having a conversation with a professional advisor about charitable planning or giving. 

Read the full study here.