Giving in Retirement: America`s Longevity Bonus

Transcription

Giving in Retirement:
America’s Longevity Bonus
A Merrill Lynch Retirement Study conducted
in partnership with Age Wave
Table of Contents
Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 3
Methodology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 4
The $8 Trillion “Longevity Bonus”. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 5
Giving Gives Back . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 12
Giving to Family . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 15
The More Generous Gender. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 17
A Game Plan for Greater Giving . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 20
Unleashing Your Longevity Bonus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 24
Endnotes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 25
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Giving in Retirement: America’s Longevity Bonus
2
Introduction
Two-thirds (65%) of retirees say retirement is the best
time in life to give back. How retirees give—through
financial contributions or by volunteering their time and
skills—will have important implications for how our nation’s
challenges and needs will be met in the years ahead.
Generosity is at the heart of America. Total U.S. charitable
donations reached a record high of $358 billion last year.
While corporations and foundations account for some
of this amount, 80% of giving in the U.S. comes from
individuals and families.1 In addition, Americans contributed
7.7 billion hours in 2013 through volunteering for charities,
nonprofits, and causes.2 Based on rates of charitable
donations, volunteering, and helping out neighbors and
strangers in need, the U.S. ranks among the most generous
nations in the world.3
But while people of all age groups give generously, the
center of gravity of giving is about to shift. Over the next
two decades there will be a surge in giving by retirees:
America’s $8 trillion “Longevity Bonus.” Three forces are
converging to create this new phenomenon:
•
The movement of the massive boomer generation into
their retirement years
•
Increasing longevity, which means more people may
spend more years in retirement
•
High rates of giving among retired men and women
(especially women)—of both money and time
The impact of the “Longevity Bonus” is not only about how
much retirees give, but also how they give. The Giving in
Retirement: America’s Longevity Bonus Study is an in-depth
exploration of the priorities, rewards, and challenges of
giving in retirement.
The Study uncovers:
•
How retirement transforms giving, and why retirees
are able to give more, and with greater impact, than
younger age groups
•
How giving gives back, and why giving can be a key
ingredient to make retirement happier, healthier, and
more purposeful
•
The #1 motivation for retirees to give
•
How the boomer generation will give differently—and
with more potential impact—than prior generations
•
Seven strategies for teaching generosity to the next
generation, and which strategy retirees say is the most
effective
•
How “giving while living” to family, rather than waiting
until the end of life, is becoming the new norm
•
How women are the more generous gender, and are
increasingly taking control of giving in retirement
•
The top barriers that limit giving by retirees, and what
is most important when retirees seek guidance and
advice
•
The five giving conversations couples should have
•
Methods and innovations that can make giving in
retirement both more impactful and personally fulfilling
The following report summarizes the key findings of our
Study.
3
Methodology
This research study, completed in July 2015, was conducted in partnership with Age Wave and executed by TNS
via an online data collection methodology. The sample is nationally representative of age, gender, ethnicity,
income, and geography. The survey was conducted among a total of 3,694 adult respondents age 25+. The
generational distribution of the 3,694 respondents is: 762 Silent Generation (age 70-90), 2,140 Boomers (age
51-69), 373 Generation Xers (age 39-50), and 419 Millennials (age 25-38). Qualitative research—six focus groups
among both pre-retirees and retirees, and interviews with national thought leaders on a variety of topics related
to giving—was also conducted prior to the quantitative research.
About Merrill Lynch Global Wealth Management
Merrill Lynch Global Wealth Management is a leading provider of comprehensive wealth management and investment services
for individuals and businesses globally. With 14,563 Financial Advisors and $1.9 trillion in client balances as of September 30,
2015, it is among the largest businesses of its kind. Merrill Lynch specializes in goals-based wealth management, including
planning for retirement, education, legacy, and other life goals through investment, cash and credit management. Within Merrill
Lynch Global Wealth Management, the Private Banking and Investment Group provides tailored solutions to ultra affluent
clients, offering both the intimacy of a boutique and the resources of a premier global financial services company. These clients
are served by more than 150 Private Wealth Advisor teams, along with experts in areas such as investment management,
concentrated stock management, and intergenerational wealth transfer strategies. Merrill Lynch Global Wealth Management is
part of Bank of America Corporation. For more information, please visit www.ml.com/retire.
About Age Wave
Age Wave is the nation’s foremost thought leader on population aging and its profound business, social, financial, healthcare,
workforce, and cultural implications. Under the leadership of Founder/CEO Dr. Ken Dychtwald, Age Wave has developed a
unique understanding of new generations of maturing consumers and workers and their expectations, attitudes, hopes, and
fears regarding retirement. Since its inception in 1986, the firm has provided breakthrough research, compelling presentations,
award-winning communications, education and training systems, and results-driven marketing and consulting initiatives to over
half the Fortune 500. For more information, please visit www.agewave.com. (Age Wave is not affiliated with Bank of America
Corporation.)
Source: Bank of America Corporation. Merrill Lynch Global Wealth Management (MLGWM) represents multiple business areas within Bank of America’s wealth and investment
management division including Merrill Lynch Wealth Management (North America and International), and Private Banking and Investment Group. As of September 30, 2015, MLGWM
entities had $1.9 trillion in client balances. Client Balances consists of the following assets of clients held in their MLGWM accounts: assets under management (AUM) of MLGWM
entities, client brokerage assets, assets in custody of MLGWM entities, loan balances and deposits of MLGWM clients held at Bank of America, N.A. and affiliated banks.
4
The $8 Trillion “Longevity Bonus”
Retirees lead the nation in giving. As the boomer generation retires, they will help create an $8 trillion
surge — the total value of retirees giving and volunteering.
The Retirement Giving Potential
Giving back is important to Americans of all ages. However, younger Americans face many constraints on their giving: work
schedules, the responsibilities and costs of raising a family, and daily expenses that often leave little extra time or money for
either volunteering or charitable donations.
For many, retirement unleashes new opportunities to give. Retirees have the greatest amount of time, savings, life experiences,
and skills they can contribute to charities, nonprofits, and causes.
•
More time. As people emptynest and retire from full-time work, they gain free time and become more available to engage
in charitable giving and volunteering (FIG 1).
•
More savings. Many retirees have accumulated savings—which are necessary to fund their retirement years—but part of
which may be available to contribute to causes and needs they are passionate about (FIG 2).
•
More skills. Retirees bring a lifetime of experience when they give back. According to our survey, 84% 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.
80
80
75
75
70
70
65
65
60
55
50
Hours per week
Hours per week
Figure 1: Discretionary
time,
by age group
time, by age
group
Retirement Retirement
$250,000
$200,000
$200,000
$150,000
$150,000
$100,000
$100,000
$50,000
$50,000
$0
$0
< 35
$216,100
$165,900
55
50
45
40
40
35
35
30
<25
<25
2534
25- 44
34
35-
35- 54
44
45-
45- 64
54
55-
55- 64
65-74
65-74
BLSSurvey,
Time Use
Survey,
2014; discretionary
defined
Source: BLSSource:
Time Use
2014;
discretionary
time definedtime
as time
not as time not
spent
for work, educational
activities,
sleeping,
personal
care, household
spent for work,
educational
activities, sleeping,
personal
care,
household
andothers
caring for others
chores, and chores,
caring for
Figure 6:hours
Average
hours volunteered
perage
year, by age
Figure 6: Average
volunteered
per year, by
140
140
128
120
120
100
$250,000
Emptynesting
Emptynesting
60
45
30
Figure 2:net
Median
age of household
Figure 2: Median
worth,net
byworth,
age ofby
household
100
83
83
133
128
133
$10,400
$105,300
$46,700
$216,100
$165,900
$105,300
$46,700
$10,400
<3535
-44
35
45-44
-54
45
55-54
-64
5565+
-64
65+
Source:
Federal
Reserve,in“Changes
in U.S.
Family
Finances
from
2010 to 2013:
Source: Federal
Reserve,
“Changes
U.S. Family
Finances
from
2010 to
2013:
Evidence
from of
theConsumer
Survey ofFinances,”
Consumer2014
Finances,” 2014
Evidence from
the Survey
Figure 7:as
Retirees
as aofpercent
of total
Figure 7: Retirees
a percent
total U.S.
adultU.S.
(ageadult
25+)(age 25+)
population,
financial contributions,
and volunteer
population,
financial contributions,
and volunteer
hours hours
45%
45%
40%
40%
35%
35%
30%
30%
31%
42%
31%
42%
45%
45%
5
The Most Generous Americans
With more time, savings, and skills to contribute, two-thirds (65%) of retirees say retirement is the best time in life to give
back. As people move to and through their retirement years, giving often escalates. Older adults are the most likely to donate
money or goods to charities (FIG 3), and among those who give, contributions are by far the most dollars of any age group
(FIG 4).
Figure
Figure 4:
4: Average
Average amount
amount given
given to
to charities,
charities, by
by age
age
Figure
Figure 3:
3: Percent
Percent who
who give
give money/goods
money/goods to
to charities,
charities,
nonprofits,
nonprofits, or
or causes,
causes, by
by age
age
80%
80%
80%
80%
73%
73%
70%
70%
58%
58%
60%
60%
$1,800
$1,800
62%
62%
62%
62%
$1,400
$1,400
50%
50%
40%
40%
80
$1,200
$1,200
75
$1,000
$1,000
70
30%
30%
Hours per week
10%
10%
2525-34
34
3535-44
44
4545-54
54
5555-64
64
65+
65+
Retirement
$949
$949
$555
$555
$600
$600
60
Emptynesting
$400
$400
55
$200
$200
50
$0
$0
45
Base:
Base: Age
Age 25+
25+
$1,462
$1,462
$1,307
$1,307
$800
$800
65
20%
20%
0%
0%
$1,672
$1,672
$1,600
time, by age group
$1,600
25-34
25-34
35-44
35-44
45-54
45-54
55-64
55-64
65+
65+
Base:
Base: Age
Age 25+
25+ who
who gave
gave money/goods
money/goods to
to aa charity,
charity, nonprofit,
nonprofit,
or
or cause
cause in
in the
the last
last 12
12 months
months
40
35
30
<25
25- 34
35- 44
45- 54
55- 64
65-74
Source: BLS Time Use Survey, 2014; discretionary time defined as time not
spent for work, educational activities, sleeping, personal care, household
Currently,chores,
olderand
adults
not the most likely to volunteer: The
caring are
for others
A similar pattern emerges when looking at volunteering.
percentage of people volunteering is highest in midlife (FIG 5), often related to volunteer activities with their school-age
4
children.Compared
But while midlife
volunteersI retired,
often have limited time to contribute,
olderGreatest
adults give much more
of their time. or
The
Figure
Figure
Figure 9:
9: Greatest motivations
motivations for
for charitable
charitable giving
giving or
Figure 8:
8: Compared to
to how
how II gave
gave before
before I retired,
average
number
of
hours
contributed
by
volunteers
soars
among
older
adults
(FIG
6).
volunteering
in
volunteering among
among retirees
retirees
in retirement
retirement …
… (%
(% agree)
agree)
I have more time to figure out what
77%
77%
Figure
5:
Percent
who
volunteer
for a charity, by age
charities
IIreally
care
about
about
charities
really
care
Making
Makingaa difference
differencein
inthe
the lives
lives of
of
Meaning
Meaningand
andpurpose
purposein
inlife
life
II want,
II am
am able
able to
to give
give how
how30%
want,
instead
of
30%
instead
ofhow
how others
othersexpect
expect me
me to
to
72%
72%
29%
26%
25%
II have
strategy
have aa better
better
strategyfor
for giving
giving
22%
time
timeand
and money
money
140
120
24%
64%
64%
100
10%
0%
25- 34
59%
59%
0%
0%
Base:
Base: Age
Age
50+ retirees
retirees
5%50+
35- 44
Hours
20%
II am
15% to
am able
able
to give
give back
back in
in aa way
way that
that
has
hasmore
more impact
impact
20%
20%
45- 54
40%
40%
55- 64
60%
60%
80%
80%
36%
36%
80
83
Expressing
Expressingor
oracting
actingupon
uponmy
my
religious
religiousor
orspiritual
spiritualbeliefs
beliefs
60
58
55
Charitable
Charitabletax
tax deductions
deductions
0%
0%
5x
5x
34%
34%
16%
16%
20%
20%
40%
40%
60%
60%
80%
80% 100%
100%
0
25-34
35-44
45-54
55-64
65+
Figure
Figure 16:
16: Which
Which of
of the
the following
following brings
brings you
you greater
greater
happiness
happiness in
in retirement?
retirement?
51%
51%
50%
66%
66%
Happy
Happy
52%
Giving
Bonus
40%in Retirement: America’s Longevity
52%
50%
50%
20% 43%
43%
76%
76%
80%
80%
Figure 13: Percent who give to religious/spiritual charities,
70%
70% or causes, by generation
nonprofits,
60%
60%
57%
57%
High
self-esteem
60%
High
self-esteem
20%
Friendships
Friendshipsand
andrelationships
relationships
133
Base: Age 25+ who volunteered for a charity, nonprofit, or cause in the
last 12 months
59%
Strong
59%
Strong sense
senseof
of
Figurepurpose
10: Change
in population
by age
group: 2016-2035
43%
43%
purpose
Healthy
Healthy
128
36%
36%
Base:
Base:
Age 50+
50+ retirees
retirees
20 Age
Figure
Figure 15:
15: Percent
Percent of
of retirees
retirees who
who say
say they
they have/are
have/are …
…
30%
61%
61%
Being
Beingmentally
mentallyand
andphysically
physically
active
active
40
65+
Source: Bureau of Labor Statistics, 2015
81%
81%
others
Figure 6: Average hours volunteered
per year, by age
others
57%
Gives
Gives or
or
volunteers
volunteers
Does
Does not
not give
give
or
or volunteer
volunteer
60%
50%
40%
30%
20%
50%
50%
60%
40%
40%
30%
30%
32%
20%
20%
10%
10%
48%
38%
48%
24%
24%
51%
6
24%
30%
Without question, when considering contributions of
Figure 6: Average hours volunteered per year, by age
both money and time, retirees lead the nation in giving.
Although retirees account for less than a third (31%) of
133
140 adult U.S. population (age 25+), they contribute:
the
128
100
•
Nearly half (45%) of total
83 volunteer hours (FIG 7)
Hours
45%
80
35%
20%
15%
10%
20
5%
0%
25-34
35-44
45-54
55-64
65+
Figure 13: Percent who give to religious/spiritual charities,
nonprofits, or causes, by generation
48%
50%
30%
32%
20%
51%
48%
30%
24%
10%
5%
10%
0%
Gave money
Millennials
Volunteered time
Generation X
Boomers
Percent of total hours
volunteered
22%
18%
17%
15%
38%
20%
0%
Percent of total money
given
Figure 14: Percent who give to select causes, by generation
25%
60%
60%
Percent of population
Source: Calculations based on U.S. Census and “Giving in Retirement:
America’s Longevity Bonus” survey data
Base: Age 25+ who volunteered for a charity, nonprofit, or cause in the
last 12 months
40%
31%
30%
25%
58
55
40
0
45%
42%
40%
120
•
42% of money given to charity
60
Figure 7: Retirees as a percent of total U.S. adult (age 25+)
population, financial contributions, and volunteer hours
Silent Generation
18%
12%
10%
9%
6% 6%
4%
Volunteered for
animal rights
Millennials
Volunteered for
enviromental causes
Generation X
Boomers
11%
8%
Gave money to
human rights
causes
Silent Generation
Base: Age 25+ who gave money or volunteered in the last 12 months;
Bases vary
Bases vary
Figure 18: Percent retirees who say what they do
miss most in retirement
Figure 19: Which of the following better defines success
in retirement?
100%
Social connections
85%
34%
80%
29%
Reliable income
60%
19%
Having purpose and work goals
40%
12%
Mental stimulation
20%
7%
Employer health insurance
0%
10%
15%
0%
20%
30%
40%
Source: Merrill Lynch/Age Wave “Americans’ Perspectives on New Retirement
Realities and the Longevity Bonus” Survey 2013, among retirees
Being wealthy
Being generous
Base: Age 50+ retirees
7
nonprofits, or causes, by age
80%
80%
$1,800
73%
70%
62%
62%
Giving
with
Greater
Impact
Figure
as a percent
of total U.S. adult (age 25+)
58%
60% 7: Retirees
population,
financial
contributions,
volunteer
In50%addition
to giving
more thanand
younger
agehours
groups,
retirees
also
give
differently.
Retirees
report
that
45%
40%
45%
42%
retirement
can
be
a
gateway
to
more
fulfilling
and
40%
30%
effective
giving. Compared to before they retired, the
35%
20%
31%
majority
of
retirees say they now give in a way that is
30%
10%
more
focused,
hands-on, and impact-oriented (FIG 8).
25%
$1,800
$1,672
$1,600
$1,462
Figure
8: Compared
to how I gave
before I retired,
America’s
“Longevity
Bonus”
$1,400
$1,307
in retirement
… (% agree)
What
$1,200 is the future of retiree giving? To answer this
question,
this study
calculated the Longevity Bonus, the
$1,000 time to figure out $949
I have more
what
77%
charities
I
really
care
about
total
value of money and time that retirees are projected
$800
Figure 14: Percent who give to select causes, by generation
to give.
Three
$555 forces will drive a surge in retiree giving
$600
I am able to give how I want,
over
the
next
two decades:
72%
instead of
how others expect me to
$400
25%
•
22%
The
$200
movement of the massive boomer generation
I have a into
better strategy
for giving
20%
18%
18%
their
retirement
years.
64%
$0 17%
time and money
25-34
15%•
35-44
45-54
55-64
65+
Increasing
longevity,
which
means
more people will
Base: Age
25+ who gave
money/goods
to a charity,
nonprofit,
12%
11%
10%
orable
cause
in
theback
last
12a months
I10%
am
to
give
in
way
that in retirement. The
9%aging of the
spend
more
years
has more impact
5%
59%
8%
6% 6%
•
Volunteered
Volunteered
for retirees,
Gave money
High
ratesforof giving
among
who, toas the
animal rights
enviromental causes
human rights
causes
survey found, have more free time and
savings than
younger
adults,
andX give
more generously
Millennials
Generation
Boomers
Silent Generation than people
Figure
Greatest
motivations
in9:their
working
years. for charitable giving or
Base:volunteering
Age 25+ who gave
moneyretirees
or volunteered in the last 12 months;
among
BasesThe
vary combined effect of these three forces is the potential
Making
a difference ingrowth
the lives of
for
tremendous
in financial giving. Assuming
giving
81%
others
Figure
15:
Percent
of
retirees
who
say
they
have/are
…
rates among retirees remain at the level they are today,
Meaning and
purpose in lifefinancial giving from
61%
we believe
charitable
retirees
overBeing
thementally
nextand
two
decades
will
swell
to
an
estimated
physically
36%
5
active
59%
Strong
sense
of
$6.6
trillion.
purpose
43%
$600
$400I am able to give how I want,
instead of how others expect me to
religious or spiritual beliefs
100%
Charitable tax deductions
16%85%
66%
Happy
80%
0%
60%
52%
20%
40%
$0
I have a better
strategy for
giving
25-34
35-44
time and money
80%
Figure 5: Percent who volunteer0%for a 20%
charity,40%
by age
60%
20%
40%
60%
30%
30%
29%
26%
Figure 9: Greatest motivations for charitable giving
24%or
25%
volunteering
22% among retirees
20%
Making a difference in the lives of
others
15%
81%
Figure 15:
Percent of retirees who say they have/are
…
Meaning and purpose in life
61%
10%
Being mentally and physically
active
36%
5%
Strong sense of
and relationships
0%Friendships
43%
purpose
25- 34
35- 44
45- 54
59%
36%
Expressing or acting upon my
65+
34%
Source: Bureau
of Labor
Statistics,
2015
religious
or spiritual
beliefs
57%
High self-esteem
Gives or
volunteers
51%
Happy
5x
55- 64
16%
0%
20%
40%
52%
66%
Does not give
60% or80%
100%
volunteer
50%
Healthy
43%
0%
20%
40%
60%
80%
Figure 10: Change
in population
by age
group:
2016-2035
Base: Age 50+ retirees; includes giving and volunteering activities
in the last 12 months
57%
60%
Figure
16: Which of the following brings you greater
50%
happiness in retirement?
40%
76%
30%80%
20%
70%
8%
6%
5%
0%
100%
40%
Gratitude
30%
-10%
Under 25
20%
Faith
24%
25-34
35-44
-7%
55-64
45-54
54%
48%
65+
Source: U.S. Census Bureau, 2015
10%
Passion
80%
20%
in the
last 12 months 15%
31%
Spending money on myself
21%
Obligation
Pride
Guilt
0%
Being
wealthy
generous
Figure 16:
Which
of the followingBeing
brings
you greater
happiness
in
retirement?
76%
80%in Retirement: America’s Longevity Bonus
Giving
Figure 20:
70% Top motivations for retirees to give or volunteer
60%
80%
50%
43%
0%
65+
64%
59%
0%
40%
55-64
I am able to give back in a way that
has more impact
60%
50%
Healthy
45-54
Base: Age 25+ who gave money/goods to a charity, nonprofit,
or cause in the last 12 months
10%
Does not give
or volunteer
60%
72%
$200
Figure 20: Top motivations for retirees to give or volunteer
Gives or
volunteers
51%
77%
$555
20%
36%
Figure 19:Friendships
Which ofand
therelationships
following better defines
success5x
57%
in retirement?
Expressing or acting upon my
34%
High self-esteem
$949
$1,000
$800
charities I really care about
boomers 4%
and increasing longevity will drive the age
20% (FIG
40%
65+ population up0%by 57%
10). 60% 80%
0%Age 50+ retirees
Base:
$1,462
$1,4008: Compared to how I gave
Figure
before I retired,
$1,307
in retirement
… (% agree)
$1,200
0%
34
35- 44
45-is
54 a priority
55- 64 for retirees.
65+
20%fact, 25In
giving
with
impact
Base:There
Age 25+
15%
are many motivations for giving, including having
10%
greater
purpose, staying active and connected, expressing
5%
religious
or spiritual beliefs, and charitable tax deductions.
0%
However,
for retirees,Percent
“making
a difference
in the lives
Percent of population
of total money
Percent of total hours
Figure 4: Average amount given
age
givento charities, by
volunteered
of others” is by far the top motivation to give, 5x more
Source: Calculations based on U.S. Census and “Giving in Retirement:
important
than
getting
tax deductions (FIG 9).
America’s
Longevity
Bonus”
survey data
$1,672
$1,600
Helping people in need
18x
20%
3%
Figure 17: Percent
pre-retirees
say what
will
0%
10%
20% who
30%
40% they
50%
miss
most
in
retirement
Reliable income
60%
38%
Figure 21: In your most fulfilling giving experience, in what
ways did you contribute?
Social connections
17%
8
o focus giving on fewer
my giving hasorganizations
27%
13%
37%
The best giving strategies
+
=
42%
How much time to volunteer
23%
give to larger charitable
39%
organizations
15%
ax deductions
19%
32%the next two decades. Assuming
ble organizations
spend
How to involve
family members58 billion hours over
But it’s
not just about money. Retirees are44%
projected
to volunteer
n the best possible way
19%
industry
standard
measures
retiree
will
0%
10%
30% 40%
50% 60% of the value of volunteer time, we believe
0%
20% volunteering
40%
60% contribute almost $1.4
el it is their
duty
to 20%
give
35%
9)
$1.4
trillion worth of services nationwide.6 Base: Age 50+ married retirees
0%
20%
40%
60%
$6.6
Trillion
Trillion
In total, we believe the value of giving by retirees, including both charitable giving and the value of volunteer
of (FIG 11).
Charitable
hours, will create an estimated $8 trillion Longevity Bonus cumulatively over the next twoValue
decades
volunteer hours
contributions
Source: Calculations based on data from the Center for Wealth and Ph
the U.S. Corporation for National Community Service, and Giving in Re
Figure 11: Estimated value of retiree charitable contributions: 2016-2035 (in $ trillions)
America’s Longevity Bonus (2016-2035)
$8
Trillion
Generation
s’ Parents
ion
%
+
=
$1.4
$6.6
Value of
volunteer hours
Charitable
contributions
Trillion
Trillion
Source: Calculations based on data from the Center for Wealth and Philanthropy at Boston College, the U.S. Census,
the U.S. Corporation for National Community Service, and Giving in Retirement: America’s Longevity Bonus survey.
9
Boomers Will Transform Giving
The Longevity Bonus also means new kinds of giving are on the horizon. As the boomer generation moves into retirement
over the next two decades, they are poised to transform how people give during a stage of life already characterized by high
levels of generosity. Compared to their parents’ generation, boomers say they are more strategic, hands-on, and demanding
with how their time and financial contributions are used. They also say they are more likely to want to fully leverage the
talents and skills developed over a lifetime when volunteering (FIG 12).
Fig
Figure 12: According to boomers, which generation is more likely to…
Seek to understand how a charity uses its
money before donating
Prefer to specify how charitable donations
are used
Prefer to challenge themselves to fully use
their skills and experience when volunteering
Want to understand impact of charitable
donations
Give a lot of thought to which charities to
donate to
Prefer to focus giving on fewer
organizations
Prefer to give to larger charitable
organizations
Believe charitable organizations spend
donations in the best possible way
Feel it is their duty to give
49%
9%
44%
15%
41%
16%
40%
11%
39%
11%
13%
37%
23%
19%
19%
0%
20%
Boomer Generation
Boomers’ Parents
Generation
39%
44%
35%
40%
60%
Base: Boomers (age 51-69)
Sou
the
10
100100
83 83
Hours
Hours
80 80
60 60
31%
31%
30%30%
25%25%
58 58
55 55
20%20%
Retirement Giving Priorities
15%15%
40 40
10%
Today’s retirees give generously to a variety of causes. However, they are10%
most
likely to give to religious or spiritual
20 20
5% 5%
charities, nonprofits, and causes. Among retirees who donate money or goods, about half (53%) donated to religious or
0% 0%
0 0 organizations or causes in the past year (far more than, for example,
spiritual
to
poverty
relief (31%),
disaster
relief
Percent
of population
of total
money
of(26%),
total
hours
Percent
of population Percent
Percent
of total
money Percent
Percent
of total
hours
25-34
35-44
45-54
55-64
65+65+
25-34
35-44
45-54
55-64
given
volunteered
given
volunteered
or educational institutions (19%)). Similarly, among retiree volunteers, almost half (48%) gave their time to religious/spiritual
Source:
Calculations
based
on on
U.S.U.S.
Census
andand
“Giving
in Retirement:
Source:
Calculations
based
Census
“Giving
in Retirement:
Base:
AgeAge
25+
who
volunteered
forfor
a charity,
nonprofit,
or cause
in the
Base:
25+
who
a charity,
nonprofit,
cause
in the
organizations
orvolunteered
causes—three
times
theorrate
of
retiree volunteering for
any other
type
of survey
recipient.
America’s
Longevity
Bonus”
data
America’s
Longevity
Bonus”
survey
data
lastlast
1212
months
months
Future generations of retirees may change the giving landscape. Younger generations are less likely to give to religious or
spiritual causes and more likely to give to animal rights, environment, and human rights causes (FIGS 13 and 14).
Figure
13:13:
Percent
who
give
toto
religious/spiritual
charities,
Figure
Percent
who
give
religious/spiritual
charities,
nonprofits,
oror
causes,
byby
generation
nonprofits,
causes,
generation
50%
50%
40%
40%
30%
30%
25%
25%
60%
60%
60%
60%
Figure
14:14:
Percent
who
give
toto
select
causes,
byby
generation
Figure
Percent
who
give
select
causes,
generation
51%
51%
48%
48%
48%
48%
18%
18%
17%
17%
15%
15%
38%
38%
32%
32%
30%
30%
24%
24%
10%
10%
20%
20%
5%5%
10%
10%
0%0%
0%0%
22%
22%
20%
20%
Gave
money
Gave
money
Volunteered
time
Volunteered
time
Millennials
X X Boomers
Generation
Millennials Generation
Generation
Boomers Silent
Silent
Generation
12%
12%
10%
10%
11%
11%
9%9%
8%8%
6%6%
6%6%
4%4%
Volunteered
forfor
Volunteered
animal
rights
animal
rights
18%
18%
Volunteered
forfor
Volunteered
enviromental
causes
enviromental
causes
Gave
money
to to
Gave
money
human
rights
human
rights
causes
causes
Millennials
X X Boomers
Generation
Millennials Generation
Generation
Boomers Silent
Silent
Generation
Base:
AgeAge
25+
who
gave
money
or or
volunteered
in the
lastlast
1212
months;
Base:
25+
who
gave
money
volunteered
in the
months;
Bases
vary
Bases
vary
Base:
AgeAge
25+
who
gave
money
or or
volunteered
in the
lastlast
1212
months;
Base:
25+
who
gave
money
volunteered
in the
months;
Bases
vary
Bases
vary
Figure
18:18:
Percent
retirees
who
saysay
what
they
dodo
Figure
Percent
retirees
who
what
they
miss
most
in in
retirement
miss
most
retirement
Figure
19:19:
Which
of of
thethe
following
better
defines
success
Figure
Which
following
better
defines
success
in in
retirement?
retirement?
100%
100%
Social
connections
Social
connections
85%
85%
34%
34%
80%
80%
29%
29%
Reliable
income
Reliable
income
60%
60%
19%
19%
Having
purpose
and
work
goals
Having
purpose
and
work
goals
Mental
stimulation
Mental
stimulation
Employer
health
insurance
health
insurance
Employer
0%0%
40%
40%
12%
12%
20%
20%
7%7%
10%
10%
15%
15%
0%0%
20%
20%
30%
30%
Figure
23:23:
What
areare
thethe
most
effective
ways
toto
teach
Figure
What
most
effective
ways
teach
generosity
toto
thethe
next
generation?
generosity
next
generation?
BeBe
a role
model
forfor
giving
a role
model
giving
Create
holiday
family
giving
Create holiday family giving
49%
49%
traditions
traditions
Involve
children
in family
giving
Involve
children
in family
giving
45%
45%
decisions
decisions
Being
wealthy
Being
wealthy
40%
40%
Source:
Merrill
Lynch/Age
Wave
“Americans’
Perspectives
on on
New
Retirement
Source:
Merrill
Lynch/Age
Wave
“Americans’
Perspectives
New
Retirement
Realities
andand
thethe
Longevity
Bonus”
Survey
2013,
among
retirees
Realities
Longevity
Bonus”
Survey
2013,
among
retirees
Being
generous
Being
generous
Base:
AgeAge
50+
retirees
Base:
50+
retirees
Figure
24:24:
Which
of of
thethe
following
brings
greater
happiness
at at
Figure
Which
following
brings
greater
happiness
this
time
in in
your
life?
this
time
your
life?
74%
74%
100%
100%
90%
90%
80%
80%
70%
70%
Men
Men Women
Women
83%
83%
68%
68%
11
Giving Gives Back
8: Compared
howbefore
I gaveIbefore
Figure 8:Figure
Compared
to how Itogave
retired,I retired,
in retirement
… (% agree)
in retirement
… (% agree)
I have
timeout
to figure
I have more
timemore
to figure
what out what
I really
charities Icharities
really care
aboutcare about
77%
77%
9: Greatest
motivations
for charitable
giving or
Figure 9:Figure
Greatest
motivations
for charitable
giving or
volunteering
volunteering
among among
retirees retirees
Making a difference
the lives of
Making a difference
in the livesinof
others
others
Meaning
andinpurpose
in life
Meaning and
purpose
life
able
to Igive
how I want,
I am
give
how
want,
I am able to
of how
others
me to
instead ofinstead
how others
expect
meexpect
to
72%
72%
Beingand
mentally
and physically
Being mentally
physically
active
active
81%
81%
61%
61%
36%
36%
Giving is a key ingredient to a better retirement. Today’s retirees are almost 6x more likely to define success by
36%
Friendships
and relationships
I have
a betterfor
strategy
for giving
36%
Friendships
and relationships
5x
I have
a better
strategy
giving
64%
5x
their
generosity,
rather
than by their wealth.
64%
time
and money
time and money
Expressing
or acting
Expressing
or acting upon
my upon my
religious
orbeliefs
spiritual beliefs
religious or
spiritual
I am
able
to give
backthat
in a way that
I am Giving
able to
give
back
in a way
Transforms
Retirement
more impact
has more has
impact
59%
59%
tax deductions
CharitableCharitable
tax deductions
16%
34%
34%
16%
The Longevity Bonus has the potential to transform giving in the years ahead. But giving can also transform
retirement.
Seven
20%60%
40%80%
60%100%
80% 100%
0%
20%
40%
60%
80%
0%
20%0% 40%
0%
20%
40%
60%
80%
in Base:
ten retirees
(69%)
say
being
generous
is
an
important
source
of
happiness
in
their
retirement
years.
Retirees
who
give
are
Age 50+ retirees
Age 50+ retirees
Base: AgeBase:
50+ retirees
more likely than those who don’t to say they have a strong sense of purpose, high self-esteem, and are happy and healthy (FIG
15). Multiple studies have demonstrated that giving and volunteering are associated with lower rates of depression, blood
pressure, and mortality.7 Retirees are 3x more likely to say “helping people in need” brings them greater happiness vs. “spending
money on themselves” (FIG 16).
Figure
16:of
Which
of the following
brings
you greater
Figure 16:
Which
the following
brings you
greater
happiness
in retirement?
happiness
in retirement?
Figure
15: Percent
of retirees
they have/are
…
Figure 15:
Percent
of retirees
who saywho
theysay
have/are
…
Strong
Strong sense
of sense of
purpose purpose
43%
57%
High self-esteem
High self-esteem
Happy
51%
Happy
52%
50%
Healthy Healthy
20%
40%
57%
Gives or Gives or
volunteers
volunteers
66%
Does not Does
give not give
66%
or volunteer
52% or volunteer
51%
50%
43%
43%
0%
20%
0%
59%
59%
43%
40%
60%
60%
80%
80%
80%
70%
70%
60%
60%
50%
50%
40%
40%
30%
30%
20%
20%
10%
10%
0%
80%
76%
24%
76%
24%
0%
Spending
Helping
people in need
Spending money
on money
myself on myself Helping people
in need
Age 50+ retirees
Base: AgeBase:
50+ retirees
Age 50+includes
retirees;giving
includes
and volunteering
Base: AgeBase:
50+ retirees;
andgiving
volunteering
activities activities
last 12 months
in the lastin12the
months
“We
makeoravolunteer
living by what we get. We make Figure
a life by
wemost
give.”
Figure
Top motivations
for retirees
to volunteer
give
21:what
In your
giving experience,
Figure 20:
Top 20:
motivations
for retirees
to give or
Figure 21: In your
most
fulfillingfulfilling
giving experience,
in what in what
ways
you contribute?
—Sir Winstonways
Churchill
did
youdid
contribute?
Gratitude Gratitude
Faith
Faith
Passion
48%
Passion
Pride
Guilt
Guilt
3%
0%
21%
21%
20%
48%
31%
31%
ObligationObligation
Pride
54%
54%
18x
18x
20%
10%
20%
50%
40%
40%
30%
30%
20%
20%
10%
10%
0%
3%
0%
10%
50%
20%
30%
30%
40%
Age 50+ retirees
Base: AgeBase:
50+ retirees
40%
50%
50%
60%
60%
43%
26%
26%
32%
43%
32%
0%
Donated money
Volunteered
my
Both donated
Donated money
Volunteered
my
Both donated
time
money and
time
money and
volunteered
volunteered
Age 50+ retirees
Base: AgeBase:
50+ retirees
12
10%
8%
10%
6%
5%
0%
0%
The
Giving Connection
-10%
Under 25
25-34
35-44
-7%
55-64
45-54
Gave money
Millennials
65+
Volunteered time
Generation X
Boomers
Silent Generation
While pre-retirees predict “a reliable income” is what they’ll miss most after leaving work (FIG 17), retirees tell us instead that it
U.S. Census
Bureau,
2015
isSource:
actually
the social
connections
that they miss most (FIG 18). By helping
retirees
Bases
vary connect with other people who have similar
interests, values, and passions, giving and volunteering can often help create new friendships to replace the social connections
that can be lost when people retire. Eighty-five percent of retiree volunteers say they have developed important new friendships
through their giving and volunteering activities.
Figure 17: Percent pre-retirees who say what they will
Reliable income
38%
Social connections
Social connections
17%
16%
16%
Mental stimulation
12%
0%
10%
19%
12%
7%
20%
30%
40%
Realities and the Longevity Bonus” Survey 2013, among pre-retirees
Figure 22: Percent who provided financial support to
family members in the last five years
70%
60%
50%
40%
30%
20%
10%
0%
29%
Reliable income
Mental stimulation
34%
0%
10%
20%
30%
Figure 23: What are the most effective ways to teach
generosity to the next generation?
68%
74%
Be a role model for giving
traditions
26%
16%
13%
40%
14%
49%
Involve children in family giving
decisions
45%
Volunteer as a family
44%
Set aside part of children's
allowance for giving
Source: Merrill Lynch/Age Wave “Family & Retirement: The Elephant
in the Room” Survey 2013; among age 50+ with adult children/
grandchildren/parents/siblings/other relatives; bases vary
17%
Create a list of family giving goals
14%
Create a shared family giving fund
13%
0%
20%
40%
60%
80%
Figure 27: Who takes the lead in making decisions regarding…?
Figure 28: Percent of U.S. men and women by age group
65%
Wife
Husband
Equal
Volunteering Activities
34%
22%
44%
55%
Smaller Financial Donations
28%
18%
54%
50%
60%
45%
66%
Men
Women
50% 50%
53%
57%
47%
43%
13
4%
5%able to give
5% back in a way that
I am
59%
has more impact
0%
0%
Volunteered
for
Volunteered
for
Gave money
to money to
Volunteered
for
Volunteered
for
Gave
0%
20%
60% rights
80% rights
animal rights
enviromental
causes 40%
human
animal rights
enviromental
causes
human
causes
causes
Base: Age
50+ retirees
Success
Redefined
Happy
66%
Happy
16%52%
0%
Healthy
Base: Age 50+ retireesHealthy
52%
20%50%40%
43%
Does
Does not give
66% not give
or volunteer
or volunteer
60%
50%
80%
100%
43%
Generation XGeneration
Boomers
Silent Generation
Millennials
X
Boomers
Silent Generation
20%
40%
60%
80%
DuringMillennials
the working
years, many
people
define
their success by career advancement or0%
the size
of their
account,
0%
20%bank
40%
60%house,
80%or
Base: Age
25+ who
money
or volunteered
in the definition
last in
12the
months;
paycheck.
But
in retirement,
new
are
6xgiving
more
to define
success
by
Base:
Agegave
25+ who
gave
money oravolunteered
lastof
12success
months; emerges. Today’s
Base:retirees
Age Base:
50+ retirees;
andlikely
volunteering
activities
Age almost
50+includes
retirees;
includes
giving
and
volunteering
activities
Bases varyBases vary
in the last in
12the
months
last 12 months
their generosity, rather than their wealth (FIG 19).
In fact, retirees say a top reason they want to give is because they are grateful for what they have had in their lives. They are 18x
more likely to say they are motivated to give by feelings of “gratitude” rather than “guilt” (FIG 20).
Figure 16: Which of the following brings you greater
Figure 15: Percent of retirees who say they have/are …
Figure 19:
Which
the following
better59%
defines
Figure
19:ofWhich
of the following
better success
defines success
Strong sense of
in retirement?
43%
in
retirement?
purpose
100%
57%
100%
High self-esteem
80%
51%
80%
60%
40%
20%
52%
60%
85%or
Gives
volunteers
Does not give
or volunteer
50%
Healthy
40%
70%
60%
85%
66%
Happy
76%
80% 20:
Figure
Top motivations
for retirees
give
or
Figure
20: Top motivations
for to
retirees
tovolunteer
give or volunteer
40%
Faith
48%
Faith
24%
30%
Passion
20%
31%
Passion
10%
Obligation Obligation
43%
0%
20% 0%15% 20%15%40%
54%
Gratitude Gratitude
50%
60%
80%
21%
in the0%
last 12 months
0%
Being wealthy
Being wealthy Being generous
Being generous
Base: Age Base:
50+ retirees
Age 50+ retirees
Base: Age Base:
50+ retirees
Age 50+ retirees
Money + Time = Most Fulfilling Giving Experience
Giving money or time to a cause often creates a better
retirement experience. But for the greatest personal
54% happiness
Figure
24:
Which
the strategy
following
brings
at
payback,
the
best
is
to dogreater
both. happiness
A quarter
Figure
24:of
Which
of the following
brings
greater
at
Gratitude
thisof
time
in
your
life?
this
time
in
your
life?
retirees (26%) say that their most fulfilling giving
48%
Faith
experience was when they donated money, and a third
100%
100%
Men when
Women
Men
say it was
theyWomen
volunteered.
However,
retirees are
31%
90%Passion90%
83%
83%
most likely
(44%) to say that their most fulfilling giving
80%
80%
21%
Obligation
68%
experience
was when they combined
their68%
money and
18x
70%
70%
60%
volunteering
time
and
gave
both
to
a
charity,
nonprofit, or
60%
20%
Pride
50%
cause 50%
they cared about (FIG 21).
40%
Guilt40%
30%
30%
20%
20%
3%
32%
0%
10%
32%
20%
17%
Base:10%
Age 50+ retirees
30%
17%
40%
50%
60%
0%
0%
SpendingSpending
money onmoney
myselfon myself
Helping people
in people
need in need
Helping
Base: Age Base:
50+ retirees
Age 50+ retirees
18x
18x
20%
3%
10%
0%
20%
10%
30%
20%
40%
30%
50%
40%
60%
50%
60%
50%
43%
Figure 25:
Which
the following
better defines
Figure
25:ofWhich
of the following
better defines
success
in
retirement?
40% success in retirement?
32%
100%
100%
30%
90%
90%
26%
Men Women
Men
80%
20%
80%
60%
10%
60%
40%
0%
40%
Donated money
20%
20%
0%
0%
21%
10%
0%
3%
Guilt
Guilt
48%
31%
21%
Spending
money on myself
20%
Pride
Pride
54%
21%
10%
Women
79%
Volunteered my
time
10%
Being wealthy
Being wealthy
79%
Both donated
money and
volunteered
Being generous
Being generous
Base: Age Base:
50+ retirees
Age 50+ retirees
“Before I retired, I just wrote checks to charities. I didn’t have time for anything else. In retirement, I give of my money, my time, and
myself. Now I can really feel the difference I am making.”
—Focus Group Participant
Figure 25: Which of the following better defines
success in retirement?
100%
Men
Women
80%
90%
79%
Figure 29:
Who29:
leaves
bequests?
Figure
Whocharitable
leaves charitable
bequests?
60%
40%
20%
Gratitude
Faith
49%
51%
44%
58%
Figure 30:
Top reasons
retirees limit
their
giving
Figure
30: Top reasons
retirees
limit
their giving
33%
Passion
28%
18%
17%
Worries about
trustworthiness
of
Worries
about trustworthiness
of
17%
charities24%
Pride
charities
16%
Obligation
Too many options
to choose
Too many
optionsfrom
to choose
26% from
5%
Legacy
6%
Financial limitations/worries
2%
Justice
Giving inMarried
Retirement:
America’s Longevity Bonus
Married
couples
21% couples
33% 10%
33%
Unmarried
Unmarried
women women
Women
41%
Men
41%
14
39%
39%
39%
39%
Figure 16: Which of the following brings you greater
Giving to Family
Figure 17: Percent pre-retirees who say what they will
76%
80%
Reliable income
70%
60%
38%
Social connections
17%
50%
40%
24%
30%
16%
16%
20%
Giving
to family is top of mind, including both creating a meaningful legacy and helping out family members
10%
Mental stimulation
12%
in times of need.
0%
A Age
Legacy
Is Now
Base:
50+ retirees
Much More Than Money
0%
10%
20%
30%
40%
Realities and the Longevity Bonus” Survey 2013, among pre-retirees
Some may think that an inheritance is principally about financial assets and real estate. While a financial inheritance can be
an important part of one’s legacy, today’s retirees are 2x more likely to say it is very important to them to pass on “values
and life lessons” vs. “financial assets or real estate”. And perhaps even more surprisingly, younger generations are 2.5x more
likely to say receiving values and life lessons is very important vs. receiving financial assets.
Giving While Living
Today,
to family no longer means waiting until the
ways
did giving
you contribute?
end of life. Three in four retirees (77%) now prefer to give
50%
43%
money to family throughout their retirement
years. With
today’s
unprecedented
longevity,
parents
might
live until
40%
32%
their children are in their 50s, 60s, or even older. The times
30%
of greatest26%
need in the lives of children are likely to be well
before we pass away.
20%
The Merrill Lynch/Age Wave 2013 study Family &
Retirement: The Elephant in the Room, revealed that six in
ten
people (62%) age 50+ provide some kind of financial
0%
Donated
moneymembers
Volunteered
mylast five
Both
donatedFinancial
support
to family
in the
years.
time
money and
help can extend in multiple directions, including
to adult
volunteered
Base:
Age
50+
retirees
children, grandchildren, parents and in-laws, and siblings
(FIG 22).
70%
60%
50%
40%
30%
20%
10%
0%
68%
26%
16%
13%
14%
10%
However, “giving while living” introduces a new challenge:
Retirees must carefully balance generosity toward family
with their own financial needs in retirement. Giving too
much without accounting for future needs may jeopardize
their retirement financial security—and ultimately require
Figure
26:toTop
retirees
tofamily.
give or volunteer
them
relymotivations
on supportforfrom
their
Gratitude
Faith
33%
28%
Passion
Justice
Pride
Obligation
5%
6%
2%
4%
Legacy
Guilt
0%
10%
49%
51%
44%
20%
30%
40%
50%
58%
18%
17%
17%
24%
16%
26%
Source: Merrill Lynch/Age Wave “Family & Retirement: The Elephant
in the Room” Survey 2013; among age 50+ with adult children/
grandchildren/parents/siblings/other relatives; bases vary
Wife
Husband
Equal
Women
34%
22%
44%
Men
28%
18%
54%
Larger Financial Donations
12%
12%
74%
60%
Base: Age 50+ married retirees
15
Sage Advice: How to Teach Generosity to the Next Generation
Social connections
34%
For many retirees, the importance of generosity is one of the values and life lessons they most want to pass on to the next
generation. In our study, we interviewed thought leaders on giving from around the Reliable
countryincome
to uncover seven best practices
to
29%
teach generosity to the next generation:
19%
Having
purpose
work goals for you.
1. Be a role model for giving by sharing your giving experiences and why
they
areand
meaningful
2. Create family giving traditions during holidays, such as making a trip to localMental
charities
to donate together.
12%
stimulation
3. Involve children in family giving decisions so they can better understand how to set priorities, identify giving goals, and
7%
decide between giving options.
0% giving
10% together
20%
30%
40%
4. Volunteer as a family. According to our study, seven in ten (71%) retirees say volunteering and
deepens
family relationships.
5. Set aside part of children’s allowance for giving, so that giving can become a habit.
6. Create a list of family giving goals so that values can be discussed and shared among family members.
7. Create a shared family giving fund so that family members can better understand how to budget responsibly for their
giving priorities.
The survey asked retirees to rank what they felt were the
most effective ways to teach generosity. A top strategy,
according to retirees, is “teaching by doing”—being a role
model for the next generation through one’s own giving
(FIG 23).
Figure 23: What are the most effective ways to teach
generosity to the next generation?
74%
Be a role model for giving
traditions
49%
decisions
45%
Volunteer as a family
44%
Set aside part of children's
17%
14%
Create a shared family giving fund
13%
0%
20%
40%
60%
80%
Figure 28: Percent of U.S. men and women by age group
65%
60%
55%
50%
66%
Men
Women
50% 50%
53%
57%
47%
45%
43%
40%
34%
35%
30%
25%
20%
<65
65-74
75-84
85+
16
15% 15%
12% 12%
10% 10%
10% 10%
4% 4%
5% 5%
6% 6%
6% 6%
11% 11%
9% 9%
8% 8%
57% 57%
HighHigh
self-esteem
self-esteem
51% 51%
not give
66% 66%DoesDoes
not
The More Generous Gender
0% 0%
Happy
Happy
Volunteered
for for Volunteered
for for GaveGave
money
to to
Volunteered
Volunteered
money
animal
rightsrights enviromental
causes
rightsrights
animal
enviromental
causes human
human
causes
causes
Base:Base:
Age 25+
money
or volunteered
in theinlast
Age who
25+ gave
who gave
money
or volunteered
the12
lastmonths;
12 months;
BasesBases
vary vary
52% 52%
give
or volunteer
or volunteer
50% 50%
Healthy
Healthy
Millennials
Generation
X
Boomers
Silent Silent
Generation
Millennials
Generation
X
Boomers
Generation
GivesGives
or or
volunteers
volunteers
43% 43%
0% 0% 20% 20%40% 40%60% 60%80% 80%
Base:Base:
Age 50+
includes
givinggiving
and volunteering
activities
Age retirees;
50+ retirees;
includes
and volunteering
activities
in theinlast
the12
lastmonths
12 months
When it comes to giving, the genders are not equal. Women are more generous than men—and are leading the
retirement giving revolution.
Our
uncovered
six ways
retired
women
are different from retired men. Women in retirement are more likely to:
Figure
19:study
Which
of the
better
defines
success
Figure
20: Top
motivations
for retirees
to give
or volunteer
Figure
19: Which
of following
the following
better
defines
success
Figure
20: Top
motivations
for retirees
to give
or volunteer
in retirement?
in(1)
retirement?
prioritize giving;
(2) give and volunteer;
100%100%
85%85%
(3) be motivated by gratitude, faith, and passion;
80% 80%
(4) take the lead in couples’ giving decision-making;
60% 60%
(5) prefer “giving while living” to family; and
(6) control inheritance decisions and make charitable bequests.
40% 40%
20% 20%
15%15%
54% 54%
Gratitude
Gratitude
48% 48%
Faith Faith
Passion
Passion
31% 31%
21% 21%
Obligation
Obligation
PridePride
18x18x
20% 20%
1. Women are more likely to say giving is a high priority in retirement.
They are more likely than retired men to say
Guilt Guilt 3% 3%
0%
that retirement is the best time in life to give back (68% vs. 62%). They are more likely than men to say that they get
Being
wealthy
Being
generous
Being
wealthy
Being
generous
0%
10% 10% 20% 20% 30% 30% 40% 40% 50% 50% 60% 60%
greater happiness from “helping people in need” than from “spending money on 0%
themselves”
(FIG 24). Women are also
Base:Base:
Age 50+
Base:Base:
Age 50+
retirees
Age retirees
50+ retirees
Age
50+
retirees
more likely than men to define success in retirement by generosity vs. wealth (FIG 25).
0%
2. Women are more likely to give in retirement. Compared to retired men, retired women are both more likely to
contribute financially (81% vs. 71%) and to volunteer their time (29% vs. 22%) to charities, nonprofits, and causes.
Figure
24: Which
of the
brings
greater
happiness
at at
Figure
24: Which
of following
the following
brings
greater
happiness
this this
timetime
in your
life?life?
in your
100%100%
90% 90%
100%100%
Men Men
Women
Women
80% 80%
83%83%
68%68%
70% 70%
50% 50%
30% 30%
32%32%
17%17%
20% 20%
10% 10%
0% 0%
80% 80%
Men Men
Women
Women
90%90%
79%79%
60% 60%
60% 60%
40% 40%
Figure
25: Which
of the
better
defines
Figure
25: Which
of following
the following
better
defines
success
in
retirement?
Spending
money
on myself
people
in need
Spending
money
on myself Helping
Helping
people
in need
40% 40%
20% 20%
0% 0%
21%21%
10%10%
Being
wealthy
Being
wealthy
Being
generous
Being
generous
Base:Base:
Age 50+
Age retirees
50+ retirees
Base:Base:
Age 50+
Age retirees
50+ retirees
Figure
29: Who
leaves
charitable
bequests?
Figure
29: Who
leaves
charitable
bequests?
Figure
30: Top
reasons
retirees
limitlimit
theirtheir
giving
Figure
30: Top
reasons
retirees
giving
Worries
aboutabout
trustworthiness
of
Worries
trustworthiness
of
charities
charities
41% 41%
17
50%
68%
70%
60%
50%
Figure 26:
Top motivations for retirees to give or volunteer
40%
26%
30%
16%
20%
14%
58%
13%
Gratitude
49%
10%
51%
0%
Faith
44%
33%
Passion
28%
18%
Justice
17%
Women
17%
Pride
Men
24%
43%
3. Women are motivated differently to give. When
Figure40%
25: Which of the following better defines
it retirement?
comes to motivations for giving, both genders are
success in
32%
highly
motivated by gratitude, faith, and passion—but
30%
26%
100%
women are even more so than men. Men
90% more often
Men
Women
20%than women
79% to give out of a
say they are motivated
80%
sense of obligation to a cause or their community, or
10%
out of the sense of pride they gain when making a
60%
0%difference (FIG 26).
40%
Donated money
Volunteered my
Both donated
4. Married women are more
their
time likely than
money
and
21% to take the lead on manyvolunteered
husbands
giving
Base: Age 50+ retirees10%
20%
decisions. When married retirees make decisions
regarding how and where they give, they often make
0%
Being wealthy
Being generous
the decisions
together—particularly
when it comes
Base: Age 50+
retirees larger financial donations. However, when
to making
retired spouses plan how they will volunteer and make
smaller financial donations, the decision is made
jointly only about half the time—and women are
significantly more likely than their husbands to be in
charge (FIG 27).
Gratitude
Faith
33%
49%
51%
44%
4%
0%
0%
10%
20%
41%
50%
26%
Don’t think giving is making a
difference
Understands my values and priorities
regarding giving
Larger Financial Donations
18%
54%
12%
12%
52%
74%
Helps me to research and identify which
charities, nonprofits, and causes I want to
give to
37%
Helps me discover what ways to give are
most fulfilling for me
60%
33%
Helps me identify charitable tax deductions
40%
0%
60%
27%
15%
10% 20% 30% 40% 50% 60%
Figure 31: What is most important in the ideal person to
guide and advise your giving activities?
regarding giving
Figure 32: Percent have discussed/agreed with spouse
regarding…
All five giving conversations
52%
give to
22%
Where we are most passionate about
giving
37%
52%
Figure 11: Estim
51%
How much money to give
33%
50%
27%
Helps me assess the impact my giving has
15%
are used
Prefer
to
challenge
themselves
to
Giving in Retirement: America’s Longevity Bonus fully use
donations
Give a lot of thought to which charities to
32%
How to involve family members
10% 20% 30% 40% 50% 60%
Am
42%
Figure 12: According to boomers, which generation is more likely to…
0%
28%
20%
60%
Base: Age 50+ retirees who give or volunteer
50%
Men
8%
0%
40%
Women
10%
Giving is not a priority
30%
Wife
Figure 31: What is most important
in theHusband
ideal personEqual
to
guide
and
advise
your
giving
activities?
34%
22%
44%
39%
40%
20%
39%
30%
10%
58%
Justice
Don’t have enough free time
26%
Source: Merrill Lynch/Age
Wave “Family & Retirement: The Elephant
5%
Legacy
in the Room” Survey6%
2013; among age 50+ with adult children/
2%
grandchildren/parents/siblings/other
relatives; bases vary
Guilt
Passion
28%their giving
Figure 30:
Top reasons retirees limit
18%
17%
17%
24%
WorriesPride
about trustworthiness of
charities
16%
Obligation
26%
Too many options to choose
5% from
Legacy
6%
2%
Guiltlimitations/worries
Financial
4%
16%
Obligation
0%
20%
40%
60%
49%
9%
15%
16%
11%
44%
18
41%
40%
39%
Boomer Generation
Boomers’ Parents
traditions
90%
49%
decisions
45%
0%
20%
40%
60%
80%
6. In later life, women are increasingly the ones to
control inheritance and giving decisions, both
to family and charitable causes. In part, women’s
growing influence is a result of their greater longevity.
On average, women outlive men by six years,9 and
in later life women significantly outnumber men.
Among Americans age 85 or older, there are almost
twice as many women as men (FIG 28). Women are
moreoflikely
thanand
men
to beby
widowed
in later life,10
Figure 28: 3x
Percent
U.S. men
women
age group
and therefore often decide how and where to pass
on money and assets—both to family
66%and charitable
Men
65%
causes.
Women Among people age 55+, unmarried women,
60%
57%
including those who are widowed,
divorced, or never
53%
55%
married,
50% 50% already contribute nearly half (49%) of all
50%
47%
charitable bequests
(FIG 29).
43%
45%
40%
83%
68%
70%
60% 28: Percent of U.S. men and women by age group
Figure
50%
32%
40%
30%65%
20%60%
66%
Men
Women
17%
10%
57%
53%
55%
50% 50%
50% Spending money47%
on myself
45%50+ retirees
Base: Age
0%
43%
40%
34%
35%
30%
25%
20%
<65
65-74
75-84
Figure 29: Who leaves charitable bequests?
Married
couples
33% retirees who have used/participated
Figure 33: Percent
Unmarried
women
49%
24%
Using a website that measures charities
based on their effectiveness
30%
25%
20%
<65
65-74
75-84
85+
Giving directly to a charity online
34%
35%
Women
80%
5. Women are more likely to prefer to give while
44%
Volunteer
as a it
family
living.
When
comes to passing money
on, retired
Set
aside
part
of
children's
women are even more likely
17%than retired men to say
they prefer to give money to family members while
14%
still alive, rather than passing it on as an inheritance
(81%family
vs. 73%).
Create a shared
giving fund
13%
Men
85+
9%
Unmarried
Usingmen
a website that helps match
volunteering opportunities with my interests
18%
4%
Participating In Internet 'crowdfunding'
4%
Source: American Charitable Bequest Demographics, 2013; among age 55+
Giving directly to a charity
by texting on cell phone
4%
Providing microloans to people
who otherwise cannot borrow
2%
0%
10%
20%
30%
40%
Figure 33: Percent retirees who have used/participated
Figure 34: Compared to other ways of giving, what do you find
most appealing about social impact investing?
24%
Giving directly to a charity online
Using a website that measures charities
based on their effectiveness
It can be more effective in getting
results for causes I care about
9%
Using a website that helps match
volunteering opportunities with my interests
4%
Participating In Internet 'crowdfunding'
4%
Giving directly to a charity
by texting on cell phone
4%
Providing microloans to people
who otherwise cannot borrow
2%
0%
10%
20%
30%
72%
Seeing my rate of return helps me
to measure how much impact my
giving has
43%
I like having the opportunity to
make financial return or profit on
my charitable giving
43%
It is a way to help make
corporations become more
socially responsible
42%
0%
40%
20%
40%
60%
80%
19
50%
43%
54%
Gratitude
A Game Plan for Greater Giving
40%
48%
Faith
Figure 24: Which of the following brings greater happiness at
Passion
31%
this time
in your life?
Obligation
100%
90%
80%
70%
60%
Men
21%
Women
20%
100%
18x
83%
20%
Pride
68%
Men
10%
80%
0%
60%
3%
Guilt
32%
Figure
25: Which of the following better defines
30%
26%
90%
Women
Donated money
79%
Volunteered my
time
Both donated
money and
volunteered
Creating a retirement giving game plan can empower retirees to unleash their Longevity Bonus.
50%
0%
10%
20%
30%
40%
50%
60%
40%Age 50+ retirees
Base:
Base:40%
Age 50+ retirees
32%
30%
Retirees
20%
are equipped
17% with both greater potential and
greater passion for giving, but they also face challenges.
10%
0%
Retirees report that top barriers that limit their giving
include knowing which charities to trust, having too many
options to choose from, and financial limitations (FIG 30).
giving
is complex,
FigureToday’s
25: Which
of thelandscape
following better
definesbut with a sound
game
plan
retirees
can
give
with
the greatest impact and
personal fulfillment. This game plan includes:
100%
80%
1.
Explore
giving goals
Men your
Women
2.
Maximize your impact
90%
79%
Passion
60% 3.
Assess and refine your giving game plan
Figure 29: Who leaves charitable bequests?
40%
20%
10% many people have little time to develop
Before retirement,
Married
a giving
strategy that addresses their goals, values, and
couples
0%
priorities.
Moreover,
activities
may often be
33%
Being
wealthy their giving
Being
generous
Unmarried
driven
by
needs
and
obligations
such
as
volunteering
for
women
49%
their children’s schools or pitching in through workplace
giving programs. Retirement can be an opportunity to
rethink your giving strategy, and to explore and discover
what isUnmarried
most important to you.
your top motivations?
• What
do you find
most
fulfilling2013;
when
giving?
Source:
American Charitable
Bequest
Demographics,
among
age 55+
• What are you most hoping to achieve?
Figure 30: Top reasons retirees limit their giving
• What values are you hoping to express or bring to life?
Everyone has unique goals, and exploring and identifying
41%
these giving goals can be a very important
first step
in
developing
a
giving
game
plan.
In
fact,
when
asked
Too many options to choose from
39%
what is most important in the ideal giving guide or
Figure 34:
Compared
to other
giving,
what
dosomeone
you find who
Financial
limitations/worries
advisor,
retirees
say ways
they of
are
looking
for39%
most appealing
about
social
impact
investing?
“understands my values and priorities” (FIG 31).
Worries about trustworthiness of
charities
26%
It can be more effective in getting
Giving is
not a about
priority
results for causes
I care
Seeing my rate of return helps
me
difference
to measure how much impact my
giving has
72%
10%
43%
20%
Base:
Age
50+ the
retirees
who give
I like
having
opportunity
toor volunteer
40%
60%
It is a way to help make
corporations become more
socially responsible
42%
20%
10%
20%
30%
40%
60%
40%
50%
60%
39%
26%
10%
Giving is not a priority
difference
8%
0%
20%
40%
60%
Base: Age 50+ retirees who give or volunteer
Figure 31: What is most important in the ideal person to
regarding giving
52%
give to
37%
33%
27%
0%
15%
10% 20% 30% 40% 50% 60%
Figure 12: According to boomers, which generation is more
43%
make financial return or profit on
0%
0%
8%
0%
28%
18%
17%
Women
Figure 30: Top reasons retirees
limit their giving
17%
Pride
Men
24%
16%
Obligation
26%
Worries about trustworthiness of
41%
5%
charities
Legacy
6%
2%
Guiltoptions to choose from
Too many
39%
4%
Justice
1. Explore
Your Giving Goals
21%
men
• What 18%
are
21%
Creating
a budget is also
20%
10% an important step to help
prioritize among different giving options, ensure one’s
own0%
financial security, and create a lasting strategy that
Being wealthy
Being generous
enables you to give to causes you care about throughout
retirement. However, four in five (80%) retirees who
gave to a charity or nonprofit last year did not create a
Figure for
26: Top
for retirees
to give
volunteer
budget
howmotivations
much to give.
Similarly,
theor
vast
majority
of people age 50+ have never budgeted and prepared for
58% members
giving
or providing financial help to other family
Gratitude
49%
(88%)—even though they are highly likely
to provide such
51%
Faith
44%
support.11
33%
80%
are used
Prefer to challenge themselves to fully use
donations
9%
20
15%
16%
11%
For retiree couples, talking about and agreeing on their
Figure
Whatand
is most
important
in thespouses
ideal person
to
giving31:
goals
strategy
can help
and partners
understand each other’s priorities and enable them to
give with the greatest impact. Three-quarters of married
52%
retirees (77%) say
it isgiving
very important to have in-depth
regarding
conversations
about
Helps
me to research and
identifygiving
which with their spouse. This study
37%
reveals five importantgive
conversations
for spouses to have
to
about
giving:what ways to give are
Helps
me discover
1.
Figure 32: Percent have discussed/agreed with spouse
regarding…
All five giving conversations
Where we are most passionate about
giving
51%
Where we feel most passionate about giving
2.
3.
15%
4.
0% 10%
20% 30% 40% 50% 60%
family members in our giving
50%
27%
Base:
50+ to
retirees
5. Age
How
involve
52%
33%
22%
42%
32%
How to involve family members
0%
20%
60%
Though married retirees say discussions are important, there is still a significant absence of planning, discussion,
coordination of giving priorities and activities between spouses. Only one in five retirees (22%) say they have addressed all
five giving conversation topics with their spouse (FIG 32).
There is a payoff when spouses explore giving priorities and make giving decisions together. Retiree couples who have
engaged in all five giving conversations are more likely than those who haven’t to say that giving is an important source of
happiness in their retirement (79% vs. 64%).
Figure 11: Estimated value of retiree charitable contributions: 2016-2035 (in $ trillions)
America’s Longevity Bonus (2016-2035)
$8
e likely to…
Trillion
49%
44%
%
41%
%
40%
39%
Boomer Generation
Boomers’ Parents
Generation
37%
23%
9%
9%
0%
40%
+
39%
44%
35%
40%
60%
=
$1.4
$6.6
Value of
volunteer hours
Charitable
contributions
Trillion
Trillion
Source: Calculations based on data from the Center for Wealth and Philanthropy at Boston College, the U.S. Census,
the U.S. Corporation for National Community Service, and Giving in Retirement: America’s Longevity Bonus survey.
21
14%
Create
a shared
family
giving
fund fund
Create
a shared
family
giving
13% 13%
Base:
Age 50+
2. Base:
Maximize
Your
Age retirees
50+ retirees
20%
10% 10%
0% 0%
0% 0% 20% 20%40% 40%60% 60%80% 80%
Impact
Spending
money
on myself
people
in need
Spending
money
on myself Helping
Helping
people
in need
Base:Base:
Age 50+
Age retirees
50+ retirees
Among prior generations, mailing a check to a worthy cause was a standard way to give. Today, there are a growing number
of ways to both research and identify giving options, and to give in ways that optimize the impact of your contributions. A
few examples include:
•
Leverage technology innovations. Technology is creating new ways to identify, research, and give to charities and
causes. These technologies are gaining popularity among younger generations, but they have been slower to catch on
with with retirees (FIG 33).
• Launch an encore career. Seven in ten (72%) pre-retirees age 50+ say they want to keep working after they retire.12
29: Who
leaves
charitable
bequests?
Figure
28: Percent
of U.S.
menmen
and
women
bycareer,”
age
group
Figure
29: Who
leaves
charitable
bequests?
Figure
28:find
Percent
of U.S.
women
by age
group
Many
fulfillment
in
anand
“encore
where they work for pay Figure
(perhaps
earning
less
than
before
retirement) in a
13
field that enables them to give back.
66%66%
Men Men
• 65%Engage
in voluntourism. Voluntourism, or “volunteer vacations,” combines a vacation with volunteering at a travel
65% Women
Women
60%
Married
destination,
and provides opportunities
for cultural immersion, learning, and new
friendships, as well as giving back.
60%
Married
57%57%
couples
couples
53%53%
55%55%
Become
a mentor.
Many retirees have a lifetime of valuable skills and experience.
Becoming a mentor, either Unmarried
informally
50%50%
50%
33%33%
50%
Unmarried
50%50%
47%47%
or through an established
program, can be one form of volunteering that enables retirees to pass on their knowledge
and
women
women
43%43%
45%45%
49%
connect with the next generation.
49%
40%40%
34%34%
• 35%Start
your own program or organization.
Although this approach has its challenges, one in five of today’s retirees
35%
•
(19%)
30%
30%
say they have an appetite to become hands-on “philanthropreneurs,” and start their own nonprofit to address a
Unmarried
need
they
care about.
Unmarried
25%25%
menmen
• 20%Consider
social impact investing. This can include buying stocks or bonds, and
mutual
20%
18%
18% funds or making other
<65 <65
65-74
85+ 85+
65-74 75-84
75-84
investments
designed
to
have
a
positive
social
or
environmental
impact
in
addition
to
financial
returns.*
Although
Source:
American
Charitable
Bequest
Demographics,
2013;2013;
among
age 55+
Source:
U.S. Census
Bureau,
20152015
Source:
American
Charitable
Bequest
Demographics,
among
age 55+
Source:
U.S. Census
Bureau,
retirees say financial returns from social impact investing can be appealing, the top benefit cited by retirees is that social
impact investing is more effective in getting results for causes they care about (FIG 34).
Figure
33: Percent
retirees
whowho
havehave
used/participated
Figure
33: Percent
retirees
used/participated
in the
last
12
months
24% 24%
Giving
directly
to a charity
online
Giving
directly
to a charity
online
UsingUsing
a website
that measures
charities
a website
that measures
charities
based
on their
effectiveness
based
on their
effectiveness
9%
9%
UsingUsing
a website
that helps
match
a website
that helps
match4%
volunteering
opportunities
with my
volunteering
opportunities
withinterests
my interests
4%
Participating
In Internet
'crowdfunding'
Participating
In Internet
'crowdfunding'4%
4%
Giving
directly
to a charity
Giving
directly
to a charity 4%
by texting
on cell
by texting
onphone
cell phone
4%
Providing
microloans
to people
Providing
microloans
to people2%
who otherwise
cannot
borrow
who otherwise
cannot
borrow
2%
0%
Base:Base:
Age 50+
Age retirees
50+ retirees
Figure
34: Compared
to other
waysways
of giving,
what
do you
findfind
Figure
34: Compared
to other
of giving,
what
do you
most
appealing
about
social
impact
investing?
most appealing about social impact investing?
It canItbe
more
effective
in getting
can
be more
effective
in getting
results
for causes
I careI care
aboutabout
results
for causes
72% 72%
Seeing
my rate
return
helpshelps
me me
Seeing
my of
rate
of return
to measure
how much
impact
my my
to measure
how much
impact
giving
has has
giving
43% 43%
I like Ihaving
the opportunity
to to
like having
the opportunity
makemake
financial
return
or profit
on on
financial
return
or profit
my charitable
giving
43% 43%
It is aItway
help
makemake
is a to
way
to help
corporations
become
moremore
corporations
become
socially
responsible
socially
responsible
42% 42%
0% 0% 20% 20%40% 40%60% 60%80% 80%
20% 20%
30% 30%
40% 40%
0%10% 10%
Base:Base:
Age 50+
Age retirees
50+ retirees
*Social impact investing is a relatively new and evolving investment opportunity which is highly speculative and involves a high degree of
risk. An investor could lose all or a substantial amount of their investment.
22
•
Donate appreciated assets to reduce capital gains. Rather than donating cash, giving appreciated assets such as
stocks, mutual funds or real estate to a charity can be a win-win: This strategy may reduce the donor’s capital gains tax
on the asset’s appreciation, while the charity receives the full market value of the gift.
•
Use an IRA or other retirement accounts. There are multiple options such as donating distributions directly to
charities; naming charities as beneficiaries; or leaving retirement accounts to charities upon death. Each option has
different requirements and impacts on estate planning, as well as current and future taxes.
•
Open a donor advised fund account. With a donor-advised fund account, donors make a charitable contribution and
receive an immediate tax benefit, and then request gifts to their favorite charities from the account over time. Donor
advised funds are simple to use and are becoming increasingly popular. In 2013, contributions to donor advised funds
totaled $17.3 billion—an 86% increase over the prior five years.14
•
Use a charitable gift annuity (CGA). Many nonprofit organizations offer CGAs to their donors. CGAs are similar to
regular commercial annuities, with an upfront donation in exchange for an annuity stream of income, now or deferred.
The CGA contract is with the nonprofit organization instead of an insurance company. The upfront contribution is a
charitable donation that creates a tax deduction.
•
Create a charitable trust. Trusts can combine goals such as “splitting” the interest from assets donated to the
trust. One form of charitable trust provides an income stream to the donor in exchange for the donation, while leaving
remaining assets to a charity – or vice versa, where the trust assets provide income to charities while leaving assets to
heirs. These methods can be complex and require outside assistance to set up.
•
Start a private foundation. For specialized, more extensive goals or donations, a private foundation may make sense.
Foundations have overhead in establishing and managing, but provide flexibility and control in supporting very specific
causes and managing foundation assets that have been donated. Foundations are also complex with legal and tax
assistance to set up and maintain annually.
3. Assess and Refine Your Giving Game Plan
Generosity can be an ongoing journey in retirement. You
can periodically measure giving activities against giving
priorities, maintain a giving plan consistent with your
long-term financial security, and identify which kinds of
giving are most fulfilling.
You may also want to assess whether your efforts have
achieved the impact you want by following up on the
results of programs you have donated to or volunteered
for. Other ways to evaluate impact include speaking with
other donors or volunteers about their experiences, or
researching the reputation of the charitable organizations
you support.
By evaluating your goals and impact, you can continue to
build upon and find new ways to give back that meet your
personal and family goals, values, and aspirations in the
years ahead.
23
Unleashing Your Longevity Bonus
This study reveals how retirees are poised to unleash an $8 trillion Longevity Bonus that has the potential to transform
giving in the years ahead. Giving back in a way that is both impactful and personally rewarding requires careful planning and
forethought, including:
1. Plan ahead for new ways you may want to give in retirement. Retirees have greater freedom and flexibility to give back,
and giving can be an important part of happiness and fulfillment in retirement.
2. Look for ways to deeply engage with a charitable organization you have passion for, and combine contributions of both
your money and time for greatest impact and fulfillment.
3. Seek ways to create new friendships through volunteering. Loss of social connections can be an unforeseen consequence
of retirement, and giving and volunteering can be a great way to build connections with people who share similar
interests and values.
4. When planning your legacy, and look for ways to effectively convey your values and life lessons, in addition to any
financial assets, to the next generation.
5. Teach generosity to the next generations by leveraging the seven strategies. You may find that being a role model
through your own giving is the most effective.
6. When “giving while living”—either to family members or charities—carefully balance your giving objectives with your
own retirement financial security.
7. Develop a game plan for the most impactful giving in retirement—including (1) exploring your giving goals, (2)
identifying creative avenues to optimize impact, and (3) continuing to assess and refine your giving game plan to both
make a difference and create a more satisfying and purposeful retirement.
24
Endnotes
1
Giving USA 2015: “The Annual Report on Philanthropy for the Year 2014”, The Giving USA Foundation.
2
“Volunteering and Civic Life in America,” 2014, Corporation for National and Community Service and the National Conference
on Citizenship.
3
World Giving Index 2014, “Charities Aid Foundation”. Based on Gallup surveys of 195,000 people in 153 nations. In this survey
the U.S. ties for the #1 ranking in generosity.
4
Volunteer Growth in America: A Review of Trends Since 1974, Corporation for National and Community Service and the
National Conference on Citizenship, 2006.
5
The retiree charitable financial giving estimate is based on the paper published by the Center for Wealth and Philanthropy at
Boston College, released in May of 2014, “A Golden Age of Philanthropy Still Beckons: National Wealth Transfer and Potential
for Philanthropy Technical Report” by Havens and Schervish. Our estimate uses data from their scenario, which assumes a 2%
growth rate and a $5 million estate tax exemption. Their 55-year estimates (2007-2061) for lifetime giving and bequests were
scaled to 20 years. The lifetime giving potential was adjusted for percent of giving by retirees observed in our survey data. The
percentage of giving by retirees was projected to reflect demographic changes forecasted by the U.S. Census Bureau over time.
All numbers are in 2015 U.S. dollars. The estimate includes charitable bequests but does not include the value of any gifts or
bequests to family members.
6
The value of retiree volunteer hours is based on data from our survey, population projections from the U.S. Census Bureau,
and the volunteer hourly value estimate from Corporation for National Community Service. U.S. Census Bureau projection data
provided expected number of individuals by age group over the 20-year time horizon. Survey data on the likelihood of being
retired, likelihood of volunteering, and average number of hours per volunteer by age group were used to create an estimate of
the number of retiree volunteer hours. These hours were valued at a rate of $23.63/hour based on inflation-adjusted estimates
derived from figures published by the Independent Sector. All numbers are in 2015 U.S. dollars.
7
Examples studies and publications supporting this point include: “A Prospective Study of Volunteerism and Hypertension Risk
in Older Adults,” Rodlescia S. Sneed and Sheldon Cohen, 2013; Patricia A. Boyle, Lisa L. Barnes, Aron S. Buchman, and David A.
Bennett, “Purpose in Life Is Associated With Mortality Among Community-Dwelling Older Persons,” Psychosomatic Medicine,
June 2009; “Volunteering and mortality among older adults: findings from a national sample.” Musick MA, Herzog AR, House JS J
Gerontol B Psychol Sci Soc Sci. 1999 May; 54(3):S173-80.
8
Merrill Lynch/Age Wave 2013, “Family & Retirement: The Elephant in the Room.”
9
Centers for Disease Control and Prevention 2014, “Health, United States.”
10
U.S. Administration on Aging 2014, “Profile of Older Americans.”
11
Merrill Lynch/Age Wave 2013, “Family & Retirement: The Elephant in the Room.”
12
Merrill Lynch/Age Wave 2014, “Work in Retirement: Myths and Motivations Career Reinventions and the New Retirement
Workscape.”
13
You can learn more about the benefits and strategies to create an encore career at www.encore.org.
14
2014 Donor-Advised Fund Report, National Philanthropic Trust.
25

Giving in Retirement: America`s Longevity Bonus

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