More and more research is piling up showing that the COVID-19 pandemic and its resulting economic turmoil has turned more Americans into savers.
Perhaps not a big surprise, as it’s been nearly impossible to spend tourism dollars in 2020, income stability is volatile and who needs fancy clothes and accessories to work and eat at home?
The latest research example of a shift toward saving is from a Voya Financial consumer survey released today, which found that 69% of Americans agree that they are now more focused on saving rather than spending.
Voya’s data also found that more individuals are seeking to get back on track with their emergency savings. A CNBC survey earlier this fall found that 14% of Americans—up to 46 million people—said they’ve wiped out their emergency savings. A lack of emergency savings has been somewhat of a wakeup call for many Americans, with the new Voya survey showing more than six in 10 agree that they are better prepared for a future emergency (66%) and are saving more money to cover possible unexpected expenses (62%).
Eighty-two percent also report financial wellness being a main focus for their family—indicating shifting priorities for many due to experiences with COVID-19.
“If there are any silver linings that we can take away from this year, it’s that the shifting priorities of individuals are emphasizing the importance of workplace holistic wellness offerings. This includes things like retirement savings, emergency fund support and access to voluntary benefits such as protection for unexpected critical illnesses, accident or hospital stays, particularly in light of the global health crisis,” said Charlie Nelson, CEO of Retirement and Employee Benefits for Voya Financial.
Indeed, the survey also found saving for retirement still remains a priority. In a year of financial uncertainly, still more than half of individuals (55%) say they are more focused on planning for retirement. And they are more interested in the financial wellness capabilities being offered by their employers.
“The good news is Voya’s survey found 60% of working individuals have grown a new appreciation for their employer given their experiences with COVID-19,” Nelson said. “So, for employers, helping individuals maintain a healthy balance when it comes to both their financial and mental well-being is becoming increasingly important. And while support for financial and heath needs are pivotal, employers cannot forget one’s mental health—which could mean greater access to employee assistance programs or simply being more aware of the heightened stress of your workers and reminding them to take a break.”
Voya’s survey found a three-fourths majority (75%) of Americans have become more focused on their mental health and emotional well-being given their experiences with the COVID-19 pandemic, emphasizing the concept that wealth has garnered new shades beyond financial means. A significant amount (73%) of Americans agree that material goods matter less.
The results of Voya’s new survey reveal that many individuals will likely be seeking a fresh outlook in 2021 and beyond as arguably one of the most impactful and memorable years in multiple generations comes to an end. While COVID-19 has undoubtedly changed the lives of many Americans, the survey indicates that the shifting priorities of many Americans have changed for the better.
One final example would be a better work/life balance. As many individuals continue to work from home, more are seeking opportunities to “make the most of it” as more than half (60%) of working Americans say they have more work/life balance than prior to COVID-19, while just over half (59%) have noted becoming more healthy through diet or exercise.