Charities could suffer due to new pension freedoms

New research* from Foresters, the international financial services organisation, has revealed that the pensions freedoms could impact on how much the 60+ age group donate to charity.

With over-60s giving the most per head of all age groups to charity in 2014 (£150 per person on average), the new pension freedoms could have a significant financial effect on future fundraising campaigns with:

• some over-60s believing they will have to cut their donations due to the uncertainty of making their fund last throughout their retirement
• 33% saying the amount they will give to charity in future could be affected as they reassess their finances in the wake of the new pension changes.

Despite financial pressures, retirees can still help charities by giving their time and gaining personal benefit from doing so with nearly one in three (30%) enjoying volunteer work with children or the elderly.

The study also showed that:

• 22% who give time feel they are making a difference
• 27% participate in charity events such as sponsored runs.

Steve Dilworth, Membership Director, comments: “The increased focus on pensions has increased consumer knowledge and interest on the subject. A great benefit arising from the new freedoms is that we are taking pension planning as a much more serious subject. We have all become pensions addicts.

“Certainly, the new pension freedoms herald a new era of financial choice for people, but these findings show that for a significant number it is also creating uncertainty in planning their future finances and that a negative impact on charitable giving could be a worrying unwelcome side-effect. Time will tell as the impact of the new freedoms on becomes clear over the next year.

“It is of course completely understandable that many of retirement age are reassessing their finances, but this doesn’t necessarily mean they can’t still help charities. Money is always appreciated by charitable causes, but the ability to give a small amount of time can go a long way. Whether it’s putting an hour aside a week to help a local cause or taking part in a fun run, time and skills are as worthwhile as donations.

“Giving time to charity has many benefits also, volunteering can allow people to get out in their community, meet neighbours and make friends. Best of all, it can give retirees the chance to gain more skills and opportunities to broaden their horizons with time they simply never had before”

Ends

*Over 1,100 people across the UK responded to an online survey in Q1 2015 of which 171 were aged 60 or above. This was conducted by Wriglesworth Research.

CONTACT:

Laura Wareing, Member Services, Foresters, on: 0208 628 3400 or email: laura.wareing@foresters.co.uk

ABOUT FORESTERS

At Foresters we believe in enriching the lives of our members, their families and the communities they live in. We’re member-based, family-focused, and community spirited.

We champion the well-being of families through quality financial products, unique member benefits and inspiring community activities.

We share our financial strength with over one million members across the United Kingdom, Canada and the United States. Throughout our 140-year history, our purpose has been to enrich the lives of members, their families and communities. The priorities remain today and will guide our future.

As an example, our work with Cash for Kids in their 2014 Mission Christmas Appeal helped nearly 300,000 children to have a better Christmas. The whole campaign raised over £9m and involved 2,660 Foresters volunteers. Together with other charity partners we helped over half a million disadvantaged children in 2014.

Forester Life is responsible for funds under management of nearly £3.3bn* and is part of Foresters, the international financial services organisation.
 

Internationally, Foresters has over £15.7bn* funds under management and has been assigned an 'A' excellent rating by A.M. Best.**
 

Safeguarding our members' interests is at the heart of what we do. Being financially strong and responsive, with sound governance and continuing professional service have always helped us to protect our members' benefits.
 

*As at 31st December 2014

**An ‘A’ excellent rating is assigned to companies that have a strong ability to meet their ongoing obligations to policyholders and have, on balance, excellent balance sheet strength, operating performance and business profile when compared to the standards established by A.M. Best Company. In assigning Foresters rating A.M. Best stated that Foresters outlook rating is ‘stable’, which means it is unlikely to change in the near future, assuming Foresters financial strength is maintained and operations grow. A.M. Best assigns rating from A++ to F, A++ being superior and A and A- being excellent ratings. This rating was assigned on 2nd July 2013. Our International Head Office is located at 789 Don Mills Road, Toronto, Canada M3C 1T9. 

DAC Ref No. 2014272/FM/OT  04/16

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