Pre-Retirees and Retirees Prioritize Charitable Giving
Pre-retirees and retirees often prioritize charitable giving as they reflect on their legacy and look for meaningful ways to make an impact in their communities and the world. As people near retirement or move into their retirement years, they tend to become more intentional about their financial planning and how their wealth can be used to support causes they care deeply about.
Several factors contribute to this growing trend:
- Legacy Planning: Pre-retirees and retirees frequently think about the legacy they want to leave. Charitable giving allows them to support causes that align with their values and create lasting change beyond their lifetimes.
- Desire for Purpose: After leaving the workforce, many retirees seek purpose and fulfillment through philanthropic efforts. Supporting nonprofits, engaging in volunteer work, or establishing family foundations helps them stay connected and make a difference.
- Tax Benefits: Charitable donations can offer significant tax advantages, particularly for retirees who need to manage required minimum distributions (RMDs) from retirement accounts. Qualified charitable distributions (QCDs) allow retirees to directly transfer up to $100,000 from their IRA to a charity, reducing taxable income.
- Family Values: For many, charitable giving is a way to model values of generosity and responsibility to future generations. It can be an opportunity to engage children and grandchildren in family philanthropy, fostering a legacy of giving across generations.
Retirees prioritize charitable giving focus on giving back, nonprofit organizations often benefit from their contributions, which can include significant financial gifts as well as time and expertise.
