A new survey by Empower, the second largest retirement services provider in the United States, found that of 1,000 Americans surveyed, nearly two-thirds believe the current economy will impact their ability to retire – and nearly half of respondents (46%) were willing to take a pay cut or forgo a raise for increased retirement benefits.
By comparison, 50% of respondents said they would do the same for remote work options and 37% said they would do so for more paid time off.
According to the report, rising inflation and the corresponding increase in prices of everyday goods and services cause a majority of Americans (70%) to feel financially uncertain.
Related: CPI report: Inflation rose more than expected in March, driven by housing and energy costs
Most still choose to save, with 80% planning to invest more. Over a third (37%) of respondents told Empower they plan to invest more money in 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 24% of respondents who said they would decrease them.
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More than 1 in 5 Gen Z respondents indicated in the Empower survey that they were counting on luck, such as a lottery win or an unexpected inheritance, for financial relief.
Side hustles are soaring
Empower’s survey responses on side hustles are in line with payroll company Gusto’s recent survey, released this week, which found that 44% of new businesses in the U.S. in 2023 started as side hustles.
Empower also found a high number of respondents planning to pursue side hustles or second jobs (25%) and greater interest among Gen Z (33%).
Generation Z also expressed the greatest concern about job security and was 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 change jobs this year to earn more.
Related: Gen Z is putting in extra work – hustles on their side