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 [email protected]
Katelyn Kwiatkowski [email protected]
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.
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SOURCE Empower
