RETIREMENT & ESTATE PLANNING
The Impact of COVID-19 on Retirement Savings Report reveals that average retirement contributions and balances are rising
I
t has been well documented that COVID-19 has wreaked havoc on both the US and global economies during the course of the last 12 months. From sky-high unemployment rates to the shuttering of businesses and wild swings in the stock market, the virus has impacted each and every sector of the economy. With so much attention being paid to the daily toll the ongoing pandemic has had on businesses, workers, and their finances, less attention has been paid to the long-term effects of COVID-19 on American’s nest eggs and retirement goals. Rather than surveying workers directly to learn their opinions regarding how COVID-19 has impacted their retirement plans, we wanted to go directly to the data. By reviewing the 401K’s of 59,000 American workers across all 50 states during 2020, we discovered that those who were fortunate enough to remain employed during this historic economic downturn were actually able to save more than they had in previous, non-pandemic years that saw the economy fare far better overall. In fact, the average retirement contributions and balances for employees in all 50 states were up from 2019 levels. Overall, we found that: • Between 2019 and 2020, the average 401K balance increased by 30.3%
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meadowlandsmedia.com
March 2021
