This is the number of adults in the United States who have become better off – despite financial difficulties – because of the pandemic, according to the results of a new survey highlighting the unexpected impact of COVID-19.
Financial Recovery After the Pandemic
A survey conducted by Northwestern Mutual in February and published last week showed that 43% of adults had regained at least part of the money they lost during the first year of the pandemic, including 10% who regained so much that they are in a better position than they expected. An additional 27% said they did not lose money initially, while 30% said they had not recovered any of their funds.
Financial Benefits of the Pandemic
The results highlight not only the resilience of many households’ budgets during the pandemic but also how some actually benefited from it. Yes, the pandemic led to job losses for 22 million people in the early months, but it also spurred unprecedented government grants.
For example: 37 million people with federal student loans received over two years without any obligations. Not only could they skip payments without penalties, but interest also did not accumulate, giving them flexibility in repaying their balances, buying a home, or investing.
New Economic Challenges
Furthermore, 73% of student loan borrowers with outstanding debts said their financial situation was at least “good” financially in 2021, compared to 65% in 2019, according to a survey by the Federal Reserve on Monday about economic well-being. In contrast, 76% of those without student loans were at least “good” financially in 2021, compared to 77% in 2019.
How much longer will people’s economic situations hold up against the latest wave of economic challenges, including inflation running near its highest levels in decades and a struggling stock market, remains to be seen. Many responded to the uncertainty caused by the pandemic by saving more money, which typically received a significant boost from emergency government stimulus programs. However, in recent months, people have had to tap into those savings to continue spending, a trend reflected in the Northwestern survey. The average personal savings amount fell to $62,000 in 2022 from $73,000 in 2021.
Do you have a question or comment or a story you would like to share? You can reach out to Diccon at dhyatt@thebalance.com.
Would you like to read more content like this? Subscribe to The Balance newsletter for daily insights, analysis, and financial tips, delivered straight to your inbox every morning!
Was this page helpful? Thanks for your feedback! Let us know why! Last
Sources:
- Northwestern Mutual. “60% of adults in the United States say the pandemic caused severe disruptions to their financial situations – May 18, 2022.”
- FRED Economic Data. “All Employees, Total Nonfarm (PAYEMS) | FRED.”
Leave a Reply