life reimagined life budget survey report...most agree they would rather have extra money than extra...

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Life Budget SurveyNovember 18, 2014

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Copyright © 2014

Life Reimagined

Reprinting with Permission

All inquiries about this report should be directed to AARP’s Media Relations department at 202-434-2560 or [email protected]

Life Reimagined

Life Reimagined was launched by AARP in 2013 to provide a personal guidance system to help people navigate transitions

and live their lives to the fullest. By off ering online and offl ine experiences made up of tools, experts and community, Life

Reimagined helps people refl ect, evaluate priorities and take action to navigate transitions and new life phases. Learn more

at http://lifereimagined.aarp.org.

Life Budget Survey

https://doi.org/10.26419/res.00094.001

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Life Reimagined seeks to be a resource to help guide people through life transitions by helping them discover new possibilities.

To gain insight into how people in their 40’s and 50’s live and assess their lives, Life Reimagined commissioned an online survey

of people ages 40-59. The survey addresses how they move toward their goals and what they would change if they could. A key

element of understanding priorities is what Life Reimagined has labeled a “life budget” – how people allocate their time, energy,

and passion across various areas of their lives. The survey explores people’s current “life budget” as well as their ideal. Key fi ndings

from the survey follow.

Overall, most people are happy and are satisfi ed with their accomplishments in life – despite many who have at least a

somewhat stressful life and some who have fallen short of where they had expected to be in life. As shown in this survey: 79% are happy, 69% are satisfi ed with what they have accomplished in life, 42% have fallen short of expectations, and 66% have at least a somewhat stressful life.

However, current Life Budgets (i.e., how people allocate their time, energy, and passion across various categories) do not

always match ideal ones. The biggest gap can be seen in the allocation devoted to job/career. On average, people devote 21% of their time, energy, and passion to their job or career, while they see 12% as the ideal. Analysis of Life Budgets by parental status shows that 40-59 year-olds with children devote most of their Life Budget to their children (24%), followed by their spouse/partner/signifi cant other (20%), and their job or career (19%). This is close to their ideal for children (25%) and spouse/partner/signifi cant other (23%), but nearly double what they would like to devote to work (11%). Among those without children, the largest budget categories are job or career (24%), spouse/partner/signifi cant other (17%), family (16%), and health/wellness (15%). These are close to their ideal levels for family (14%) and health (18%), but slightly lag their ideal for spouse/partner/signifi cant other (23%) and exceed their ideal for work (13%).

Although people are split on what is most important in life (between money, meaning/purpose, and lack of fear/worry),

most agree they would rather have extra money than extra time. About 4 in 10 people feel it is most important to have a life of meaning and purpose (39%), while roughly 3 in 10 feel it is most important to have enough money to do the things they want (31%) and to have a life without fear and worry (30%). Nevertheless, when asked to choose between extra money and extra time in the day, 71% choose money.

Executive Summary

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More fi nancial security tops the list of changes that would increase one’s happiness. Similarly, the top things people would have done diff erently in their lives pertain to fi nances. In addition, people feel lack of fi nancial security is the top obstacle to prioritizing things that would make them happier. When asked to select what would most increase their happiness, nearly 4 in 10 say more fi nancial security (39%). Moreover, when people are asked what one thing they would have done diff erently in their life, 21% wish they had made smarter fi nancial decisions and12% wish they had pursued a career path with more fi nancial security. Thirty-three percent say lack of fi nancial security is the main obstacle to prioritizing things that would make them happier, followed by 20% who say lack of enough time, and 14% who say job demands. In addition to fi nancial security, relationships matter and will play a key role in priorities over the next ten years. For parents, 47% say their children brought them the most happiness, followed by their spouse or partner (23%). Over the next ten years, their top priority is family (38%), followed by relationship with spouse/partner/signifi cant other (16%). For those without children, their spouse or partner brought them the most happiness (22%), followed by their friendships (20%). Their top priority over the next ten years is health (25%), followed by relationship with spouse/partner/signifi cant other (17%). In addition, regardless of parental status, more people derive their self-worth from family and close friends (71%) rather than from their job (29%).

Although few made a New Year’s resolution last year, nearly all value refl ection and envisioning change. Only 1 in 4 people (25%) made a New Year’s resolution last year. However, 92% appreciate the value of refl ecting on how their life is going and imagining ways they could change or improve it. If a resolution were made this year, the most popular topics would be saving more money (20%), developing good habits (17%), and spending more time with loved ones (16%). Fewer than 4 in 10 people who made at least one New Year’s resolution last year kept all of them (36%).

Character/integrity, money, and relationships are most often cited as the most important element of “a good life.” Consistent with the emphasis on fi nancial security and relationships, the top element of “a good life” is having strong character and living life with integrity (22%), followed by having the money to live the lifestyle you want and pursue your passions and hobbies (19%), and maintaining strong ties with friends and family (19%).

The survey was written by Luntz Global, LLC in collaboration with Life Reimagined. It was fi elded by Global Marketing Research Services from October 7 to October 9, 2014. A total of 1,000 online interviews were completed with adults ages 40-59 in the United States. The results from the study were weighted to be nationally representative. The margin of sampling error for the sample is ±3.1%.

Executive Summary

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Detailed Findings

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Life Budget Survey: Detailed Findings

People are split on what is most important to them and answers diff er for parents

Q5. Overall, which of the following is most important to you?

Have kids (27%) < No kids (39%)

Having enough money to

do the things I want to do

Have kids (42%) > No kids (32%)

Having a life of meaning and purpose

Have kids (30%) = No kids (29%)

Having a life without

fear and worry

31%

39%

30%

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Family is the highest priority for those with kids; Health tops the list for those without kids

Q6: As you look ahead over the next 10 years, which of the following is your highest priority?

Highest priority over the next 10 years

Differences by Age

40-49 50-59

Family 37% 23%

Health 13% 22%

Family

Health

Relationships with spouse/partner/s.o.

Finances

Happiness

Opportunity to do what I want

Job/Career

Hobbies + Passions

Friends

10%

25%

17%

38%

14%

16%14%

12%

12%9%

11%8%

6%2%

4%1%

0%2%

No kids

Have kids

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4 in 10 Have Fallen Short of Expectations They Had for Their Life When They Were 21 Years Old

Q8. Think back to when you were 21. Overall, have you exceeded the expectations you had for your life back then, fallen short of your expectations, or are you about where you expected to be at this time in your life?

Fallen Short

About where expected

Exceeded42%

32%

26%

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Most people are satisfi ed with what they’ve accomplished in life – although few totally

Q9. Generally speaking, how satisfi ed or unsatisfi ed are you with what you’ve accomplished in life so far?

Differences by Relationship Status and Parental Status

Married or living Widowed Never Have No with partner or divorced married kids kids

Satisfied 76% 58% 50% 74% 57%

Unsatisfied 15% 29% 27% 17% 26%

69% SATISFIED

37%

SOM

EWH

AT

12%

NEI

THER

11%

SOM

EWH

AT

6%

VERY

3%

TOTA

LLY

TOTA

LLY

26

%

6%

VERY

19%UN-SATISFIED

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Most people are happy, despite having at least a somewhat stressful life

Q10. Generally speaking, how happy would you say you are?

Q11. Generally speaking, how stressful would you say your life is right now?

Totals exceed 100% due to rounding.

79%HAPPY

TOTALLY HAPPY VERY HA

PP

Y SOMEWHAT HAPPY

NE

ITH

ER U

N

HAPPY

6%

34%

40%

9%

12%

66%STRESSED

EXTREMELY VERY SOM

EWHAT

O

NLY

A L

ITT

LE

N

O

T

10%19%

37%

28%

7%

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If given an extra hour in the day, family time tops list for parents; sleep tops list for those without

Q12. If you had an extra hour in the day, which of the following would you be most likely to use it for?

Differences by Age

40-49 50-59

Family time 37% 23%

Pursuing hobbies + passions 13% 22%

Differences by Gender

Male Female

Pursuing hobbies + passions 19% 11%

Watching TV or browsing web 9% 3%

Family time Sleep Improving health by exercising

Pursuing hobbies + passions

Getting chores done

Watching TV or browsing

web

Working

Have kids

No kids

14%

18%

21%

17% 18%

14%

18%

10%

16%

4%

10%

3% 2%

35%

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If given an extra $1,000 bonus at work, most would be practical: paying off a bill or saving/investing it

Q14. If you got an extra $1,000 bonus at work, which of the following would you be most likely to do with it?

Pay off a bill or credit card

Put it in savings or invest it

Spend it on travel

Buy something I’ve wanted

Make home improvements

Spend it on someone I care about

Have an exciting experience

Donate it to charity

37%

28%

10%

8%

8%

7%

2%

<1% Differences by Gender

Male Female

Pay off a bill or credit card 31% 43%

Put it in savings or invest it 35% 21%

Spend it on travel 7% 12%

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Job/Career shows the biggest gap in current vs. ideal allocation of time, energy, and passion

Q16-Q23. Below is a list of priorities you might have in your life. We would like to understand how you currently allocate your time, energy, and passion across these priorities. Assign a percentage to each category from 0-100%.

Q24-31. Now focus on the way you want your life to be. Imagine life at perfection. Here’s the same list. Assign a percentage from 1-100%.

Q32. Looking back over those same parts of your life, are you generally satisfi ed with the way you prioritized them over the past 20 or 30 years, or would you do things diff erently?

Mean percentage of time, energy and passion allocated to each category

Most (71%) are generally satisfied with their priorities over the past 20-30 years

HAVE KIDS NO KIDS CURRENT IDEAL CURRENT IDEAL

My job or career 19% 11% 24% 13%

My children 24% 25% 1% 2%

My parents, siblings, or other extended family 9% 9% 16% 14%

My spouse, partner, significant other 20% 23% 17% 23%

My friendships 6% 7% 9% 10%

My faith or religion 5% 7% 6% 6%

My hobbies or leisure time 8% 9% 12% 14%

My health and wellness 9% 10% 15% 18%

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Finances and time are the top obstacles to prioritizing things that would make people happier

Q32. Which of the following has been the main obstacle when it comes to prioritizing the things in your life that would make you happier?

Q35. What is more important in life, playing it safe or taking risks?

Most people feel playing it safe (71%) is more important than taking risks (29%) in life.

LACK OF FINANCIAL SECURITY 33%

NOT ENOUGH TIME 20%

JOB DEMANDS 14%

HEALTH ISSUES 11%

8% LIVE TOO FAR FROM LOVED ONES

8% FAMILY DEMANDS

4% DON’T KNOW HOW TO START

2% INSUFFICIENT SUPPORT FROM FAMILY AND FRIENDS

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Although most would prefer extra money to time, most also feel their self-worth comes from relationships, not their job

Q36. Which statement do you agree with more? I derive most of my self-worth from my family and close friends: How much time I can spend with them, the strength of the bonds I grow, and the close connections I create with the ones I love. OR I derive most of my self-worth from my job: How productive I am, how successful I am at it, and how much impact my work has on the lives of myself and others.

Q36. Which would you rather have? Extra money. Or Extra time.


Male Female

Job 39% 19%

Family & close friends 61% 81%

Most of myself-worthcomes from...

MY

FA

MIL

Y A

ND

CLO

SE FRIENDS MY JOB

29%71%


Male Female

Extra money 66% 76%

Extra time 34% 24%

I wouldrather have...

EX

TR

A M

ONEY

EXTRA TIME IN T

HE

DA

Y29%71%

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Although few made a New Year’s Resolution, nearly all value refl ection and envisioning change

Q38. Did you make at least one New Year’s resolution last year?

Q53. Generally speaking, do you refl ect on how your life is going and imagine ways you could change or improve it?

Only 1 in 4 (25%) made a New Year’s Resolution last year.

8%

22

%

44

%

26

%

No, and I don’t see much value in it

No, although I can appreciate its value

Yes, but I don’t do enough of it

Yes, and I do a lot of it

Generally speaking, do you reflect on how your life is

going and imagine ways you could change or improve it?

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Of those who made New Year’s Resolutions last year, fewer than 4 in 10 kept all of them

Q39. [BASE: Have made a New Year’s resolution this year] Have you kept all of the New Year’s resolutions you made last year?

Q40. If you were to make a New Year’s resolution this year, which of the following is it most likely to be?

While most people believe keeping a New Year’s resolution is more likely than winning the lottery (67% vs. 33%), only about a third of people who made at least one New Year’s resolution last year have kept all of them (36%).

Most likely area if you were to make a New Year’s resolution this year

To save more money

To pick up good habits

To spend more time with loved ones

To stop a bad habit

To have more fun

To do better at work or find a new job

To learn a new skill

To date, find spouse/partner, or get married

To volunteer more

To spend more time on hobbies

Other

20%

17%

16%

11%

11%

6%

5%

4%

3%

3%

5%

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More fi nancial security tops the list of changes that would most increase happiness

Q43. Right now, which one of the following changes would most increase your happiness?

Right now, which one of the following changes

would MOST increase your happiness?

39%

12% 11% 9% 7% 6%5% 4% 3% 4%

More financial security

Improved health

Asignificant other or stronger

marriage or relationship

Moretime with my family

Better work-

life balance

Job I enjoy more

More meaning

and purpose in my life

More time in my day

More vibrant

social life

Nothing. Am

completely happy already

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Finances tops the list of things people would have done diff erently in their life

Q45. If you could change one thing in your life, which of the following would you have done diff erently?

21%12%

12%

11%

8%8%7%

5%4%

4%3%

7%

Made smarterfinancial decisions

Changed my education (more of a different subject)

Pursued a career path withmore financial security

Take better care of my health

Spent more time with familyWorked harder at my marriage

or to find a spouse/s.o. ormarried a different person

Pursued a career with more meaning

Traveled more

Taken life less seriously and had more fun

Made different decisionsabout kids (having and/or #)

Stayed in better touchwith old friends

Nothing. I would notchange anything

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Children and relationships have brought people the most happiness

Q48. Which of the following do you think has brought you the most happiness over the course of your life?

Male Female

My children 25% 42%

My spouse or partner 27% 18%

My hobbies or passions 11% 6%

My health 5% 1%

My children

My spouse or partner

My positive attitude & outlook

My faith

My hobbies or passions

My friendships

My job or career

My health

My volunteer work

My involvement in my community

47%

23%

9%

9%

6%

2%

2%

1%

2%

0%

1%

22%

13%

11%

14%

20%

9%

7%

2%

1%

No kids

Have kids

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Character/Integrity, Money & Relationships top list of the most important element of “A Good Life”

Q50. Which of the following is the most important to your personal defi nition of “a good life?”

22%

19%

19%

14%

14%

7%

1%4%

22% CHARACTER/INTEGRITYHaving strong character andliving my life with integrity

19% MONEYHaving the money to livethe lifestyle I want and pursuemy passions and hobbies

19% RELATIONSHIPSMaintaining strong ties with friends and family

14% HEALTHBeing healthy enoughto do the things I want

14% STRESS-FREEBeing free from stress

7% SATISFYING WORKDoing work I love thatbrings me satisfaction

4% GIVING BACKMaking the world

a better place

1% LOCATION Living in an interesting

and exciting location

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Nearly half feel writing a novel is easier than changing careers after age 50

Q52. Which do you think is easier? Changing careers after age 50 or Writing a novel?

Changing careers

after age 50

Writing a novel53%47%

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Appendix

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The survey was written by Luntz Global, LLC in collaboration with Life Reimagined. It was fi elded by Global Marketing Research

Services from October 7 to October 9, 2014. A total of 1,000 online interviews were completed with adults ages 40-59 in the

United States. The results from the study were weighted to be nationally representative. The margin of sampling error for the

sample is ±3.1%.

Methodology

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