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Originally Posted On: https://www.empower.com/the-currency/money/financial-peace-of-mind-research
Most Americans will pay a high price for peace of mind
New Empower research shows more than half of Americans are willing to pay a high price for financial peace of mind (56%): In fact, 1 in 5 say they’d be willing to take on debt for items or services that help them achieve it (19%).
The majority define it as being debt-free (81%) and paying bills on time and in full (79%). For over 3 in 5 Americans, it’s affording everyday luxuries without guilt.
Key takeaways
- Americans say financial peace of mind comes from the ability to retire when they want (63%) and being able to afford experiences with loved ones (57%).
- Many also defined it as having a work-life balance (55%) and owning a home (53%).
- Nearly 7 in 10 Americans (68%) are willing to pay more for items or services that help them achieve financial security.
- 66% of Americans are willing to spend more for an item or service if it buys them more free time.
- 6 in 10 say they would increase their retirement savings contribution (62%) and up their investments (45%) if they got a raise.
What is financial peace of mind?
For over half of Americans, financial peace of mind comes from the ability to retire when they want (63%) and being able to afford experiences with loved ones (57%). Many also define it as having a work-life balance (55%) and owning a home (53%).
Most Americans (68%) would pay more for items or services to help them achieve their financial goals. Two-thirds (66%) are willing to spend more if the item or service gives them more free time. Almost 1 in 5 Americans say items or services that provide financial peace of mind are worth taking on debt (19%).
Almost three-quarters of Gen Z (73%) are willing to pay more for items or services that could help them achieve financial independence and security — the most of any generation. Millennials (71%) and Gen Z (68%) are also the most willing to spend more on items or services that create more free time.
To save or splurge?
Americans are willing to pay a higher price for services and experiences over “things.” When it comes to putting a dollar amount on financial peace of mind, Americans spend an average of $3,276 on each service or experience that brings peace of mind compared to $2,449 on an item.
Americans consider vacations (56%), dining out (45%) and buying concert tickets (38%) luxury experiences. More than a third say service subscriptions like TV streaming options are a luxury (36%). On average, Americans spend $1,893 on each splurge. Over a third (36%) would pay more for exclusive experiences or items.
On average, Americans say they spend $726 on each luxury product they buy, with some (21%) spending over $2,000 per item. Looking at specific purchases, Americans are more likely to label electronics like smartphones, big-screen TVs, and video game systems as luxury purchases. For almost a third of Americans, two of the largest peace-of-mind purchases include home ownership (30%) and purchasing a car (30%).
In the event of a salary increase, 62% of Americans would increase their retirement savings contribution and investments (45%). Some 42% would put the money towards experiences like traveling or dining out.
Spending and satisfaction
Methodology
Empower commissioned an online survey of 1,011 Americans from April 10-16, 2024.
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