More than half of Americans say they are in financial recovery mode

More than half of Americans say they are in financial recovery mode
Northwestern Mutual survey finds most respondents' financial planning is focused on the short term, with only 14% actively planning more than five years out.
JUN 24, 2021

While 58% of U.S. adults say they are in financial recovery mode as a result of the pandemic, 89% of them are confident they will ultimately achieve a full financial comeback.

That’s the key finding of a survey conducted by Northwestern Mutual, which found that average personal savings rose more than 10%, from $65,900 last year to $73,100 currently, and average retirement savings increased 13%, from $87,500 to $98,800.

The survey also found that while 33% of people say they have been able to save more over the last year, 31% say they are saving less or stopped saving altogether and 9% say they have had to dig into savings and are going backwards.

Among those who say they are in financial recovery mode, the survey found that only 14% are actively planning more than five years out, while 24% are planning month-to-month.

“Maintaining momentum over time will require a long-term view, and the study shows that planning horizons today are quite short,” Northwestern Mutual said in a release.

The survey of 2,320 Americans 18 or older was conducted between March 16 and March 26.

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