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.

About Empower

Empower, a leader in financial planning, investing, and advice, is dedicated to creating financial freedom through people and technology. 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.

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