The average expected retirement age will be pushed back three years to 63.
As inflation, interest rates and student loans dampen the sense of prosperity
Greenwood Village, Colorado, November 20, 2023 /PRNewswire/ — Can money buy happiness? 59% of Americans (72% of Millennials and 67% of Gen Z) say the answer is yes, and here’s what it costs. $1.2 million according to new research According to Empower, a leader in financial planning, investing and advice, only 17% of people say financial satisfaction means reaching a certain net worth.
Most people rate their “returns to happiness” as being able to pay their bills on time (67%), be debt-free (65%), afford everyday luxuries without worry (54%), and own a home. associated with having (45%). Half of people feel satisfied with being optimistic about the following: spending money on experiences with people they care about (53%) and retiring on their own terms (37%) The answer is that it can be obtained.
Still, there are obstacles to happiness for many (67%), and 73% of Americans say they feel financial stress. In the current environment, people are estimating that on average they will delay their retirement plans by three years until they are 63, and for those without a financial plan the clock will wind back five years. Economic pressures such as inflation (81%), rising costs (81%), interest rates (66%), and student debt (32%) are dampening the sense of prosperity.Half of people say they are in debt (54% vs. 72% of Gen Xers) and 36% are unable to cope with unexpected expenses 500 dollars Really without worrying.
For many people, happiness is rooted in the peace of mind of financial planning (73%). Americans who have more detailed financial plans are nearly three times more likely to report higher levels of happiness with money.
“Each generation has grappled with the problem of how to calculate financial well-being: working hard, planning well, saving consistently, and even having a little bit of luck, with the right means.” A spirit of financial confidence is prevalent with 7 in 10 saying, “They have clear financial goals, and Americans continue to envision a brighter future.” . ” To tell carol waddellPresident of Empower Personal Wealth.
Other important findings financial well-being:
- Money happiness milestones: Seven in 10 (71%) believe that more money would solve most problems, but for a third (32% overall and 37% of baby boomers) There will be achievable profits. $15,000 It will have a meaningful impact on their lives and improve Americans’ sense of financial well-being for six months. This number he jumps to 42%. $25,000 (50% of baby boomers) and just $5,000 I’ll do it at 17%.
- Millennials estimate they need more wealth than other generations to feel comfortable: When it comes to paychecks, Americans say they need a paycheck. $284It takes 167 times a year to be happy, and the estimate for men is much higher than for women ($381,000 and $183,000, Each).Millennials think that number is $525,000Generation Z $128,000Generation X $130,000boomers $124,000every year.
- Retirement evokes joy, but the timing can be reset. Gen Z will be the earliest of all generations to retire at age 54, but that estimate has been revised upward from age 49 just 12 months ago. Future generations may not be able to expect their savings to increase through inheritance. His 67% of survey respondents, including his 75% of baby boomers, value being able to take care of themselves now rather than passing on wealth to future generations.
- Many people work to survive and rely on their employers for important financial matters. Americans see work as a transaction (75%), and if money were no object, two-thirds of Americans (64%) would quit their job tomorrow. Still, for 37%, saving for retirement is their top goal for the coming year, and 67% say their employer has a responsibility to help them plan for retirement, especially through a 401(k) option. thinking about. Three in four workers (72%) say they would like to receive financial coaching to reduce financial stress.
- Advice is the biggest factor in determining your financial well-being: More than half (52%) feel they know their financial goals but don’t know how to get there. Americans cite receiving good money advice (63%) as an important determinant of financial well-being.
- Coffee break from social media: For many people, happiness is defined by financial flexibility. 62% of Millennials say they are willing to spend money. 7 dollars I drink coffee every day because of the joy it brings me. 73% of people say they would quit social media if it meant their financial well-being.
- Financial well-being involves not only wealth but also health. Americans believe that improved financial well-being makes people healthier overall (79%), makes them more productive and creative at work (77%), and helps build intergenerational wealth ( 84%), and encourage people to pay money upfront (78%). , and help close the gap between rich and poor (75%).
“Empower’s financial experts combine the power of advice with technology to help Americans on the path to financial freedom,” he says. Waddell. “With financial goals in mind and a solid plan to achieve them, savers can spend more time doing the things that make them happy, during their working years and beyond.”
The full Financial Wellbeing report, including further research exploring the future of life, work and play, is available at: The Currency™. Start your path to financial freedom today: Check it out. Empower.com.
Empower’s “Financial Well-Being” study is based on online survey responses from 2,034 Americans age 18 and older conducted by Harris Poll. August 7th – August 14th, 2023, and data from Empower Personal Dashboard™. The survey is weighted to be nationally representative in terms of age, gender, education, race, region, income, household size, marital status, and employment status. In this study, the accuracy of the sample data is within + 2.9 percentage points using a 95% confidence level.
Empower is a leader in financial planning, investing, and advice, dedicated to creating financial freedom through people and technology.manage $1.4 trillion It holds the assets of more than 18 million retirement plan participants and holds the record for the second largest retirement plan in the nation by total number of participants.1 connect with us at Empower.com.
Rebecca Rickert [email protected]
caitlin kwiatkowski [email protected]
1 current June 30, 2023. Information refers to all retirement businesses of Empower Annuity Insurance Company of America (EAICA) and its subsidiaries, including Empower Retirement, LLC.Empowering life and pension insurance companies new york Empower Annuity Insurance Company (EAIC) is sold under the Empower brand. EAICA’s consolidated total assets under management (AUA) are: $1,387.9 billion. AUA is a non-GAAP measure and does not reflect the financial stability or strength of a company. EAICA’s total legal assets $739.8 billion and total debt 70.1 billion dollars. ELAINY’s total legal assets $7.2 billion and total debt $6.9 billion. EAIC’s total statutory assets $90.1 billion and total debt $88.8 billion.
upon August 1, 2022, Empower has announced that it will change the names of various companies within its group of companies to align them with the Empower brand. For more information about name changes, visit empower.com/name-change.
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