£2bn time-bomb for third sector as future retirees expect to spend less time volunteering
Our data shows half the over 50s plan to continue working in retirement, with 6% of those never planning to stop work. Time pressures could therefore be a factor in the reduction in the number of people planning to volunteer, as could financial pressures to makes ends meet.
- Collapse of a third in proportion of over 50s planning to do voluntary work in retirement
- 50-64 year olds currently do nearly a quarter of all hours volunteered
- Retiree volunteering is currently worth £6.2bn to the voluntary sector; fall from 1-in-4 to 1-in-6 would cost £2.2bn
Retirement Advantage is warning that a collapse in the number of over 50s planning to do voluntary work presents a looming time-bomb that could cost the voluntary sector billions of pounds.
According to Retirement Advantage’s latest Retirement Sentiment Index report ‘Expanding Horizons’1, the past year has seen a fall of a third in the proportion of over 50s that expect to do voluntary work in retirement, down from 25% in 2016 to 16% in 2017.
Government estimates that the 4.8 million 50-64 year olds that currently volunteer did 430 million hours of voluntary work in 2015, totalling 22% of all hours volunteered that year and time worth £6.2bn to charities and non-profits.
Retirement Advantage’s analysis shows that a fall of a third in the number of that cohort volunteering would see an estimated 155 million fewer hours volunteered, hitting the third sector to the tune of £2.2bn.
Andrew Tully, pensions technical director at Retirement Advantage, said: ‘The research suggests a significant drop in the proportion of people who intend to do voluntary work in retirement, which could have a huge impact on the charity sector. Our data shows half the over 50s plan to continue working in retirement, with 6% of those never planning to stop work. Time pressures could therefore be a factor in the reduction in the number of people planning to volunteer, as could financial pressures to makes ends meet.
‘Getting proper advice is key so I’d encourage anyone approaching retirement to seek professional financial advice. Advisers are in the best position to help people and create the potential to allow them to enjoy a more fulfilling retirement.’
- The data in this release is taken from the latest Retirement Advantage Retirement Sentiment Index report, which is based on data from the following sources:
- 2017 figures: Censuswide survey of 1,005 over 50s, yet to retire, with private or defined contribution pensions, conducted between 28/06/2017 and 29/06/2017.
- 2016 figures: YouGov survey of 1,001 UK adults over the age of 50, with a DC pension but not yet in retirement. Fieldwork was undertaken between 15/08/2016 and 19/08/2016.
Volunteer hours and value estimates are based on ONS data on Community Life Survey 2015 figures on volunteer participation rate by age and average time volunteered per day, combined with ONS 2016 population pyramid estimates.