Spending generally declines during retirement for most budget items, but charitable giving tends to buck this trend. A new study, conducted by the Women’s Philanthropy Institute (WPI), examined the spending habits of American households as workers transitioned into retirement.
It found that married couples and single women tended to maintain their levels of charitable giving both before and after retirement. Single men, however, tended to reduce their charitable giving as they left the workforce.
Interestingly, though, the WPI report found that women, both single and married, are generally less confident than men about their financial health in retirement, and they’re particularly focused on not outliving their savings. That’s a reasonable fear, given that women tend to live longer than men.
What’s the best way for all groups of retirees – men and women, both single and married – to donate to charities without worrying about running out of money? It’s a mistake to simply consider your retirement savings as a pot of money from which you can write checks to charity. That’s a good way to outlive your savings if you’re not careful.