The majority of Americans are still contending with the financial impact of the coronacrisis
According to the Northwestern Mutual’s 2021 Planning & Progress Study, 58% of US adults aged 18+ say they are in financial recovery mode. Although, among them, nine of out ten (89%) express confidence that they will ultimately achieve a full financial comeback.
For those in recovery, the research shows that the majority feel they are making considerable progress.
Indeed, 34% say they’re in “late-stage recovery” – they suffered losses but have mostly, if not fully, recovered to pre-pandemic levels and are feeling confident in their ability to achieve long-term financial security.
In addition, 47% say they’re in “mid-stage recovery” – they suffered losses and have begun making up ground, but have not yet reached pre-pandemic levels and still remain optimistic about their ability to achieve long-term financial security.
Only 18% of the respondents say they’re in “early-stage recovery” – they suffered losses, are still in decline and are unclear how they’ll achieve long-term financial security.
Across a range of different categories, year-over-year numbers indicate that people’s financial lives are trending in the right direction.
- Average personal savings are up over 10% — from $65,900 last year to $73,100 today;
- Average retirement savings increased 13% — from $87,500 last year to $98,800 today;
- Financial security is nudging upward – from an average of 6.3 on a ten-point scale last year to 6.5 today
Going a layer deeper into savings trends reveals a more nuanced story.
For instance, a third (33%) of people say they have been able to save more over the last year. Meanwhile, nearly an equal third (31%) say they are saving less or stopped saving altogether.
One in ten (9%) say they’ve had to dig into savings and are going backward.
We’ve reported that UK-based digital bank enables app access for children.