Survey from Principal Financial Group® highlights how the pandemic has workers and retirees rethinking financial plans
A majority of today’s workers and retirees range from feeling cautious to pessimistic about the economic outlook for 2021, with nearly 75% concerned about how the global pandemic may impact their retirement savings, according to the latest Principal Retirement Security Survey. The study gauged consumer concerns and actions around saving for retirement, financial plans, and reactions to COVID-19 and the accompanying market and economic impacts.
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“COVID-19 and the resulting impacts have changed how many consumers think about their current and long-term financial security”
“COVID-19 and the resulting impacts have changed how many consumers think about their current and long-term financial security,” said Sri Reddy, senior vice president of Retirement and Income Solutions at Principal. “Throughout the pandemic, we’ve engaged with our individual and business customers to provide real-time information that can help in managing their finances amid the uncertainty. As we reflect on the past year and look ahead to what 2021 may bring, we’re committed to helping workers and retirees feel more secure about their future by offering actionable insights and possible financial solutions.”
Consumers say health and financial security are their two top priorities this year. They also expressed a need for advice as they navigate their financial plans. And despite citing uncertain feelings about what 2021 may bring, workers and retirees reported high overall happiness during the fourth quarter of 2020 (85%) that’s consistent with 2020 pre-pandemic findings (86%). In addition, 71% of workers and 87% of retirees said they’re confident they’ll remain in a positive state of mind for the next few months(Principal).
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Anticipating impacts from market volatility, consumers plan to improve their financial health
Nearly 75% of workers anticipate the pandemic is impacting their path to retirement, and the same percent of retirees anticipate an impact on their accumulated retirement savings. As a result, both workers and retirees plan to make changes to help improve their financial health, such as:
- spending less (35%)
- saving more (29%)
- paying down debt (25%)
Looking to 2021, consumers identify what’s most important and where they need help
Poised with caution and maintaining a positive outlook toward the coming months, workers and retirees call attention to what they feel is most important in life, notably:
- health (56%)
- financial security (49%)
- having a close-knit family (35%)