Retiring at 62 has become a thing of the past for most people. In fact, the average age for retirement across the country is now 67 years old. If your retirement is still several years away, but you’d like to make charitable gift now that will supplement your income later, consider exploring a deferred charitable gift annuity (CGA) or a flexible CGA.
Like an immediate CGA, a deferred or flexible CGA is a contract between you and Drexel University that provides for the guaranteed payment of a fixed income to one or two annuitants. If you choose a deferred CGA, when you make your gift, you’ll choose a future date when income payments will begin. If you choose to create a flexible CGA, rather than choosing a specific date, you’ll choose a date range when your payments can begin following a “trigger event,” such as retirement, sale of a home or business or a child’s graduation. The longer the delay between the creation of your deferred or flexible CGA and the start of payments, the higher the payout rate and the larger your charitable income tax deduction.
Many Drexel alumni view CGA’s as both as an attractive supplement to their retirement plans AND as a terrific, tax-savvy way to support the University. If you aren’t quite ready to retire, both deferred and flexible CGAs are excellent ways to make a gift that Drexel University can use today while locking in guaranteed income for yourself (or a loved one) that will begin later.
We’re happy to help you explore the benefits of CGAs, or any of the wide range of other charitable planning ideas. Contact David Toll, JD, senior associate vice president in Drexel’s Office of Gift Planning at (215) 895-1882 or giftplanning@drexel.edu, or visit our website at drexel.edu/giftplanning.