Generous seniors giving more
When it comes to giving their time and money, seniors come out in front. But it pays to have a plan to avoid running into potential problems, writes
OLDER Australians are punching above their weight when it comes to donating money and time.
They comprise 33 per cent of the national population but are giving 38 per cent of the donations, despite many having a limited supply of income and assets because they have stopped working, according to new research by Australian Seniors Insurance Agency.
Seniors are also spending almost eight hours a week volunteering, and most don’t get paid for their out-of-pocket expenses doing this.
However, generosity by older Australians is best to be carefully planned to avoid running into potential problems with Centrelink means testing and longer life expectancies.
Australian Seniors spokesman Simon Hovell said many believed it was their generation’s turn to give back.
“Many seniors are seeking a sense of being useful or needed, having left full-time work, so turn to volunteering or donating to charity to help achieve this,” he said.
Almost three-quarters of seniors (73.2 per cent) had donated money in the past year, with an average donation of $323 to Australian charities and $330 to international charities, the research found.
And 83.9 per cent of senior volunteers have rarely or never been reimbursed for their outof-pocket expenses such as travel costs, meals, clothing or insurance.
Almost 30 per cent say this is the biggest barrier to them volunteering more.
“While smaller community organisations may not have the funds to help subsidise these costs, seniors who regularly volunteer their time to national and international organisations should consider researching the financial terms and conditions of their organisations to see if they can be reimbursed for at least some of this burden,” Mr Hovell said.
Wealth for Life Financial Planning principal Rex Whitford said seniors generally had a greater financial capacity to donate, considering the financial pressures faced by younger people today.
“The reality is that you cannot give unless you first have something to give,” he said.
“You don’t help anyone by giving all your money away and then going on welfare as a result.”
Mr Whitford said many older Australians would spend a third of their life being retired and had a desire to give more, but should remember potential future costs such as aged care, which now “is very expensive”.
Centrelink’s pension asset and income tests allow people to give $10,000 a year or $30,000 in a five-year period before potential penalties occur. These limits apply whether you give to family, friends or charities.
“People need to feel fulfilled either through giving or by contributing some of their time through volunteering,” Mr Whitford said.