Half of Americans feel they're running out of
time to save for retirement,
though average 401(k) balances suggest people may be further along
than they think
GREENWOOD
VILLAGE, Colo., May 1, 2024
/PRNewswire/ -- Time is money, and there's a premium: Americans say
their time is worth $240 per hour, on
average, according to new research from Empower, a leader in
financial planning, investing, and advice. Based on a standard
40-hour week, that puts the perceived value at $499,200 per year – nearly eight times higher
than the average U.S. salary of $59,384.1 One third of people set the
price at under $50 per hour, though 1
in 4 Millennials value their time at over $500 per hour – the highest of any generation
(just 6% of Boomers name that rate).
Many Americans are racing against the clock when it comes to
financial goals: Half think they're running out of time to save for
retirement, even though 44% say they started putting money away
early enough. Another 43% wish they could go back in time to start
saving sooner, and half (48%) would rather have a longer retirement
period with less money, than retire later in life with more.
People may be further along than they think. According to
Empower Personal Dashboard™ data, the average 401(k) balance
clocks in at $291,810 and for people
in their 50s approaching retirement age the number jumps to
$580,2592 – one key
measure of overall personal savings and investments.
Additional key findings from Time is Money:
- Spending time wisely: The average price of 60 minutes
varies: Millennials say it's worth $328.84 per hour, followed by Gen Z at
$266.92, Gen X at $215.90 and Boomers at $137.19. Based on this study's findings of how
Americans value their time, two hours of meetings at work cost
close to $500 per person; catching
nightly Z's costs nearly $2,000 a day
(or close to $60,000 a month).
- Less is more: 1 in 4 people (26%) are willing to take a
15% pay cut to gain more free time. 40% would rather pay to make
life easier right now than to save and have more money later and
more than 2 in 5 say outsourcing household tasks gives them a
better work/life balance (41%).
- Cost of convenience: 36% would rather pay more to get an
item delivered instead of driving 10 minutes to get it. A third of
Gen Z (30%) would pay up to $5,000
per year to save time not doing everyday tasks like cleaning and
yard work, and 36% of Millennials would shell out up to
$10,000 for someone to take on
in-house chores and cook meals.
- AI to save time: 21% would use AI to recommend money
moves to plan for retirement, help pay bills on time (25%) and make
a budget by examining personal financial accounts (23%).
- Time on money: 26% would spend $5,000 per year to have someone else manage their
long-term financials, investments, and savings. More than a third
of Americans admit to procrastinating money tasks like paying their
bills.
- Clocking in: 44% say they wish they could work
part-time, but can't afford it. More than a third (32%) say they
want to start their own business, but don't have the time.
- Financial signs of the times: 1 in 4 Americans are
keeping a close eye on shrinkflation (24%), as well as their
ability to retire and when (22%), the strength of the job market
(21%), and cryptocurrency (19%).
- The luxury of time: 6 in 10 people (63%) "feel wealthy"
if they have enough time to spend with family and friends. Nearly a
third feel comfortable taking on debt if it buys more free time
(29%) or a memorable experience (29%). Nearly 2 in 5 say saving
time is more important than saving money (37%).
For many, getting advice early on is key: Nearly 1 in 5 would
have worked with a financial professional sooner. Overall,
Americans remain optimistic, with 78% saying it's never too late to
start focusing on your finances.
Visit The Currency™ to read Empower's full research report,
"Time is Money."
*ABOUT THE STUDY
The Empower "Time is Money" study is
based on online survey responses from 2,204 Americans ages 18+
fielded by Morning Consult from March 11-14,
2024. The survey is weighted to be nationally representative
on the following dimensions: age, gender, education, race and
region. Results from the survey have a margin of error between +/-
2%.
ABOUT EMPOWER
Empower, a leader in financial planning,
investing, and advice, is dedicated to creating financial freedom
through people and technology. It administers approximately
$1.5 trillion in assets for more than
18.5 million individuals3 and is the nation's
second-largest retirement plan recordkeeper.4 Connect
with us on Empower.com, and subscribe to The Currency™ for the
latest money news and views shaping how we live, work and play.
Media contacts:
Rebecca
Rickert Rebecca.Rickert@empower.com
Katelyn Kwiatkowski
Katelyn.Kwiatkowski@empower.com
1 U.S. Bureau of Labor Statistics Dec
2023. Quarterly Census of Employment and Wages.
2 Anonymized user data from the Empower Personal Dashboard™ as
of March 2024.
3 As of December 31, 2023. Assets
under Administration (AUA) refers to the assets administered by
Empower. AUA does not reflect the financial stability or strength
of a company.
4 Pensions & Investments 2022 Defined Contribution Survey.
Ranking measured by total number of participants as of September 2022.
Empower refers to the products and services offered by Empower
Annuity Insurance Company of America and its subsidiaries. This
material is for informational purposes only and is not intended to
provide investment, legal, or tax recommendations or advice.
The information contained herein is being provided for
discussion purposes only and does not constitute an offer to sell,
or a solicitation of an offer to buy or sell securities. All
visuals are illustrative only.
"EMPOWER" and all associated logos and product names are
trademarks of Empower Annuity Insurance Company of America.
© 2024 Empower Annuity Insurance Company of America. All rights
reserved.
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SOURCE Empower