Study shows retiring baby boomers likely to bring surge in giving

• Published date: 01 December 2015
• DOI: http://doi.org/10.1002/nba.30138
• Date: 01 December 2015

DECEMBER 2015

7

NONPROFIT BUSINESS ADVISOR

© 2015 Wiley Periodicals, Inc., A Wiley Company • All rights reserved

DOI: 10.1002/nba

Nonprot Research

Study shows retiring baby boomers

likely to bring surge in giving

A new study conducted by Merrill Lynch in partner-

ship with population research rm Age Wave shows

that charitable giving by retirees could represent an $8

billion “longevity bonus” over the next two decades as

baby boomers leave the workplace and retire in droves.

Based on the giving levels of current retirees, the

study estimates that retired boomers will contribute

some $6.6 trillion in cash donations and about 58 bil-

lion volunteer hours—valued at $1.4 trillion—between

now and 2036.

The study points out three key factors that will drive

this surge in giving:

• The movement of the massive boomer generation

into their retirement years.

• Increasing longevity, which means more people

will spend more years in retirement.

• The high rates of giving, including time, money

and skills, among retirees.

According to the report, more people age 65-plus

donate money or goods than any other age group, and

give the greatest amount—more than double that of

younger adults.

And although slightly fewer older adults volunteer

compared to other age groups, those who do volunteer

contribute more than twice as much time, the report

shows. The research found volunteers over age 65 vol-

unteer an average of 133 hours per year, compared to

55 hours per year for those aged 25–34 and 58 hours

per year for those aged 35–44.

The report also explored the reasons that drive retir-

ees’ giving. Notably, giving appears to be a key ingredi-

ent to a better retirement, the report found. For example:

• Giving is good for mental and physical health.

Compared to those who do not volunteer or donate,

retirees who give say they have a stronger sense of

purpose (59 percent vs. 43 percent), higher self-esteem

(57 percent vs. 51 percent) and are both happier (66

percent vs. 52 percent) and healthier (50 percent vs. 43

percent) than those who do not contribute.

• Giving leads to more social connections in retire-

ment. Retirees report that social connections are what

they miss most about their working lives. Giving back

lls that void for many, with some 85 percent of re-

tirees reporting that they have developed important

new friendships through their giving and volunteering

activities, the report said.

• Retirees have a lifetime of experience to offer.

According to the report, some 84 percent of retirees

say an important reason they are able to give more in

retirement is that they have greater skills and talents

compared to when they were younger. Now that they

are in retirement, they say they are positioned to give

in ways that better match their personal priorities and

passions (77 percent), are more thoughtful and focused

(64 percent) and have a more meaningful impact (59

percent).

• They have new perspectives on happiness and suc-

cess. Retirees are three times more likely to say helping

others makes them happier than spending money on

themselves (76 percent vs. 24 percent). Further, retir-

ees are also nearly six times more likely to say “being

generous” denes success for them rather than “being

wealthy.”

While retirees do have the time, money and drive to

give back, they do face some challenges to doing so,

the report noted. First, many are concerned about the

trustworthiness of charitable organizations—cited by

41 percent of those surveyed for the study. And second,

nearly as many—39 percent—said there were simply

too many options to choose from. According to the

report, retirees are looking for trusted advisors that

can help them research and identify which charities

and causes to support.

The report, Giving in Retirement: America’s Lon-

gevity Bonus, is available online at http://www.ml.com/

retirementstudy. ■

Have a nonprot question

or story idea you would like to share?

Contact Nicholas King, Editor, at

nkelwr@comcast.net