While many retirees work with a financial advisor, only half have had a charitable planning conversation.
BOSTON–(BUSINESS WIRE)–Fidelity Charitable®, an independent public charity and the nation’s largest grantmaker, today released findings from its “Charitable living and the new retirement” study, highlighting how donors age 50+ plan for and engage in charitable giving during retirement. With an estimated 4 million Baby Boomers turning 65 this year, the study shows that more than half of pre-retirees and retirees ages 50-80 are committed to giving, with 78% saying that charitable giving plays a significant role in their lives.
“Retirement is an exciting new chapter in life that creates opportunities for retirees to spend more time and resources in support of the meaningful causes they care about, but it also has implications for charities and financial advisors. While the intent and desire to make a difference are strong with retiring donors, there is a knowledge gap around tax-smart strategies,” said Amy Pirozzolo, head of donor engagement at Fidelity Charitable®. “That is where we can help them make charitable dollars go further and ensure they achieve their goal of doing well while doing good throughout this next stage of their lives.”
A demonstrated commitment to giving
Beyond providing financial support for charities, pre-retirees and retirees are also actively giving back through volunteerism. In the past year, over two-thirds of pre-retirees (71%) and over half of retirees (55%) volunteered. This could indicate that the trend toward volunteerism may continue to grow as the current group of pre-retirees transitions into retirement.
Of those retirees who volunteer, more than 1 in 4 (27%) report doing so for over 13 hours a month, indicating commitment to their causes.
Nearly 9 in 10 retired respondents who currently volunteer agree that volunteering is a way to remain active (88%) and connected (91%).
An opportunity for advisors
Additionally, the research reveals 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, this audience is ripe for additional guidance.
Tax-smart giving awareness: 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.
Giving method awareness: Awareness of what can be donated is also low. For example, just 1 in 3 pre-retirees and retirees (32%) are aware that they can donate appreciated assets, like stocks.
Professional charitable advice: While about two-thirds of pre-retirees (69%) and retirees (65%) work with an advisor (financial advisor, certified public accountant, or attorney), 61% of pre-retirees and 51% of retirees report ever having had a conversation with a professional advisor about charitable planning or giving.
Read the full study here.
About This Study
The 2024 Charitable living and the new retirement study surveyed more than 2,500 people, ages 50-80, including 844 givers with investable assets of at least $1 million. 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.
About Fidelity Charitable
Fidelity Charitable is an independent public charity that has helped donors support more than 406,000 nonprofit organizations with nearly $84.5 billion in grants as of December 31, 2023. Established in 1991, Fidelity Charitable is rooted in innovation, from its launch of the first national donor-advised fund program to its facilitation of difficult-to-donate assets to its tech-forward giving platform. The mission of the organization is to grow the American tradition of philanthropy by providing programs that make charitable giving accessible, simple, and effective. For more information about Fidelity Charitable, visit https://www.FidelityCharitable.org.
Fidelity Charitable is the brand name for the Fidelity Investments® Charitable Gift Fund, an independent public charity with a donor-advised fund program. Various Fidelity companies provide services to Fidelity Charitable. The Fidelity Charitable name and logo, and Fidelity are registered service marks of FMR LLC, used by Fidelity Charitable under license.
Information provided in, and presentation of, this document are for informational and educational purposes only and are not a recommendation to take any particular action, or any action at all, nor an offer or solicitation to buy or sell any securities or services presented. It is not investment advice. Fidelity does not provide legal or tax advice.
Information presented herein is for discussion and illustrative purposes only and is not a recommendation or an offer or solicitation to buy or sell any securities. Views expressed are as of the date indicated, based on the information available at that time, and may change based on market and other conditions. Unless otherwise noted, the opinions provided are those of the author and not necessarily those of Fidelity Investments or its affiliates. Fidelity does not assume any duty to update any of the information.
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