Saturday, November 23, 2024

Americans Would Take a Pay Cut for More Retirement Benefits

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A new survey from Empower, the second largest retirement provider in the U.S., found that of 1,000 Americans surveyed, nearly two-thirds think the current economy will impact their ability to retire — and nearly half of respondents (46%) were willing to take a pay cut or give up a raise for more retirement benefits.

In comparison, 50% of respondents said they would do the same for remote work options, and 37% said they would for more paid time off.

Rising inflation and correspondingly higher prices for everyday goods and services have the majority of Americans (70%) feeling uncertain financially, according to the report.

Related: CPI Report: Inflation Rose More Than Expected in March, Driven By Housing and Energy Costs

Most are choosing to save anyway, with 80% planning on investing more. Over a third (37%) of respondents told Empower that they specifically wanted to put more money into employer-sponsored retirement plans.

Other popular investments included high-yield savings accounts (34%) and stocks (44%).

A slightly higher percentage of respondents said they would increase their 401(k) contributions (26%), compared to the 24% of respondents who said they would decrease them.

Related: Entrepreneurs Are Starting Businesses While Working Part- or Full-Time Elsewhere

More than 1 in 5 Gen Z respondents indicated in the Empower survey they were counting on luck, like a lottery win or an unexpected inheritance, for some financial relief.

Side Hustles Are Soaring

Empower’s survey responses on side hustles aligned with payroll company Gusto’s recent survey, which was released this week and found that 44% of new businesses in the U.S. in 2023 started as side hustles.

Empower also saw a high number of respondents who intended to work side hustles or second jobs (25%), and greater interest in Gen Z (33%).

Gen Z also expressed the most concern about job security and were the most risk-averse. More than a quarter of Gen Z respondents (26%) said they would withdraw their investments for cash and 22% said they would job switch this year to make more money.

Related: Gen Z Is Putting in the Extra Work — On Their Side Hustles



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