Survey Says 46% Of Americans Say They'd Give Up A Raise Or Promotion For This Perk - It's Not Remote Work

A recent survey by Empower, a leading U.S. financial service company, reveals that nearly two-thirds of Americans believe the current economic climate will negatively impact their retirement plans. In a striking finding, 46% of respondents indicated they would be willing to forgo a raise or promotion in exchange for enhanced benefits from their employer.

Interestingly, remote work doesn't top the list of perks people are willing to sacrifice salary for; instead, the focus is on more substantial company-provided benefits. The survey also found that half of the participants would trade pay for the flexibility of working from home, while about one-third would opt for more paid time off (PTO) instead of a higher salary.

With rising costs for essentials like food and gas making many Americans are anxious about their financial future, 70% of those surveyed report feeling uncertain about their financial stability. To address these concerns, 80% are turning to investment to secure their financial well-being. This aligns with advice from trusted financial experts like Barbara Corcoran and Grant Cardone, who emphasize that investing is crucial for wealth accumulation.

Over one-third of respondents are eager to boost their retirement savings through employer-sponsored plans, while others are exploring high-interest savings accounts and stocks as viable options for growing their wealth. The influence of these experts in shaping investment decisions is a reassuring sign of informed decision-making.

The Shift Towards Retirement Security Over Salary

More people plan to put more money into their 401(k) plans (26 percent) than those cutting back (24 percent). The survey also says over 20 percent of young people (Gen Z) hope for luck, like winning the lottery or getting surprise money, to help with their money problems.

Empower's survey found that many people plan to have extra jobs (25 percent), especially young people (33 percent). This matches a new report from a paid company, Gusto, that says almost half of new US businesses started as side jobs this year.

Gen Z is most worried about losing their jobs and doesn't like taking risks. Over one-fourth of them (26 percent) would withdraw their money from investments, and 22 percent would change jobs this year to earn more.

Retirement Goals: How Much Is Enough?

While Americans are exploring ways to boost their income, the question of how much they believe they need to retire comfortably is also a significant concern. Americans have ambitious retirement plans, thinking they'll need a substantial $1.46 million to retire comfortably.

According to a new survey from Northwestern Mutual, this is a significant increase of 53 percent compared to their 2020 goal. Unfortunately, most people are far behind in saving for retirement. The average person only has $88,400 saved, which is $1.37 million less than they think they need.

Financial expert Grant Cardone says you're not rich even with a million dollars. He shared a TikTok video saying you actually need $10 million to be considered wealthy today. Grant Cardone says a million dollars was worth a lot more in 1960. Because money is worth less now, you'd need about $10 million to feel as rich as someone with a million dollars did back then.

Due to rising prices and other financial challenges, Americans now believe they need to save significantly more for retirement than in 2020. Aditi Javeri Gokhale, chief strategy officer at Northwestern Mutual, told CBS MoneyWatch that people now think they need around $1.46 million to retire comfortably, a big increase from the $951,000 they wanted in 2020.

However, people also expect to live longer and spend more time retired, which might explain why they need more money saved. The survey found that young people (Gen Z) want to retire at 60 and think they might live to 100, meaning they must save for a 40-year retirement.

"The magic number is at an all-time high — it's 50% higher than what it was before the pandemic," Gokhale said. "The cost of living in general, whether in reality or perception, seems to be more costly now than it was before."

Is $1.46 Million Enough?

Many of the 4,588 adults surveyed probably guessed how much they needed to retire. According to a financial expert, the study also found that only about half of older people (boomers) who are already retired know how much they actually need.

Although some people have spoken with financial advisers or meticulously devised their retirement plans, many Americans are heading toward retirement without having assessed their needs.

"There is no major calculation; it's a feeling," Gokhale noted. "Some of them probably have done some math, in terms of saving and in terms of average burn to operate [in retirement], but it generally comes [down] to feeling."

While $1.46 million might seem like a lot, the reality of retirement finances is more complex. Everyone's situation is different, based on factors like lifestyle, location, and taxes.

If we follow a common rule of withdrawing 4 percent of savings each year, that $1.46 million would provide about $58,400 annually. Combined with an average Social Security benefit of $23,000, this totals roughly $81,000 annually in retirement income.

This is higher than the average US household income, but it's important to remember that expenses can change in retirement. Unfortunately, most Americans are far from reaching this savings goal, with many retiring without any savings at all.