Millions went through a tough period due to the economic recession that hit the United States in 2008. While many consider that economic collapse the worst since the Great Depression, it seems the coronavirus pandemic has reshaped much of the truth when it comes to global disasters. With economies around the world shutting down, a survey found that most American adults perceive the current financial crisis as worse than the "Great Recession" that occurred in 2008.
More than half of 2000 adults aged 40 to 65, earning over $100,000 annually, believe the impact of the coronavirus pandemic on the U.S. economy is more harmful than the economic recession that happened 13 years ago. Commissioned by Edelman Financial Engines in late 2020, a large-scale survey reported that 59% of Americans based most of their answers in 2020 on COVID-19 response plans, and over 7 in 10 people (72%) stated that concerns about their financial future significantly influenced their voting preferences in the recent U.S. presidential elections, with 64% describing "the economy" as the main issue affecting their voting decisions.
Additionally, it is clear that financial worries weigh heavily on Americans right now. While 88% of survey participants are still saving for retirement, 24% had to save less than they planned since the pandemic began, while another 35% admitted they did not have enough savings overall.
**The Viral Pandemic Puts Retirement at Risk:**
Among American contributors to retirement funds, 1 in 4 had to withdraw from these funds to help cover costs during the pandemic, with the average American saying it would take six years to recover those depleted savings. One in two people has spent some retirement funds early to pay bills, whereas nearly 4 in 10 people (39%) provided some money to a friend or family member in need during the crisis caused by the viral pandemic, with one-third using their retirement savings due to an emergency for survival. Another common theme among many Americans is the regret of not starting retirement savings earlier, as the average person begins saving for up to 30 years, but most said they wish they had started a decade earlier.
Among Americans who are still not saving for retirement, 80% claim this choice was a bad mistake. When asked why they had not saved before, two in five said it was because their employers never offered them retirement plans. A third of survey participants said they could not make regular retirement contributions, and only 16% stated they did not want to participate in retirement planning.
**Top Reasons for Saving Among American Citizens:**
- Retirement: 74%
- Preparing for a rainy day: 27%
- Vacation: 15%
- Buying a car: 15%
- Paying for education: 14%
- Buying a home: 13%
- Starting a business: 11%
- Funding a special event: 9%
- Funding a wedding: 6%
