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 – 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 recognized as the nation's second-largest retirement services provider⁴ by total participants. 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