Time is Money

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,¹ 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 $59,384.² 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).

"Against an uncertain economic backdrop, time is a precious commodity -- whether it's the way people value their hours to earn a living, or the price we pay to free up time in the here and now. Money is more than a math problem, and the study suggests a complex calculation of what it’ll take to achieve goals like a secure and timely retirement," says Rebecca Rickert, head of communications at Empower. “It's a race to find financial happiness, all around."

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 $580,259³ – one key measure of overall personal savings and investments.

Sign of the times

Americans are having to work alongside the wider economy on their journey to hit their goals. Though 30% of adults are not keeping track of any financial “signs of the times,” around a quarter are keeping an eye on shrinkflation (24%), as product sizes get smaller for the same or more cost. It can be a struggle, as more than 3 in 4 Americans believe they’re doing as much as they can to save money while shopping (76%).  Some 22% of Americans are also keeping track of their ability to retire and when (22%), as nearly half (48%) worry about how they’ll pay for expenses once they’re no longer working.

Americans are watching the strength of the job market (21%), and cryptocurrency (19%). The same amount are keeping an eye on volatility in the stock market. Compounding gains can play an essential role in building wealth and 3 in 10 people say they would have invested in a popular stock if they could go back in time.

*ABOUT THE STUDY

The Empower “Time is Money” study is based on online survey responses from 2,204 Americans ages 18+ from March 11-14, 2024. The survey is weighted to be nationally representative of U.S. adults.