They’re still saving at record levels, but how and why they save has changedA new survey conducted by SaveBetter.com, a consumer-focused saving and banking site, reveals a renewed concerned about retirement income adequacy. Visit here for more details.
A recent survey of over 1,000 Americans conducted on behalf of SaveBetter.com indicates the pandemic has prompted Americans to reconsider how they approach their own finances, with uncertainty over retirement being a dire concern.
With millions still out of work, and several key industries under forced closures or reduced capacities, unsurprisingly 48% of respondents reported being worse off financially as a direct result of the pandemic and other events of the past year. Furthermore, 55% of respondents indicated that they had been forced to change or reconsider their financial priorities.
While the pandemic created the immediate need to save more – 68% of respondents said the need to have an emergency fund became more apparent to them – it also influenced their longer term thinking with 68% of respondents indicating that the pandemic has directly increased their concerns about saving enough for retirement. However, 82% of respondents still admitted a lack of knowledge about their own retirement plans.
For consumers that are actively saving, standard savings accounts and high-yield savings accounts were the preferred savings vehicles, with 83% of respondents indicating they held such kind of account. Furthermore, Americans were much more inclined to move money into (36%) than out of (17%) a high-yield savings account than any other financial instrument in the past year.
“Many respondents indicated that the safety and security of their money had become a really important factor when choosing which bank to open an account with,” says President of SaveBetter.com Ben McLaughlin. “They’ve also increasingly turned to online only savings accounts since the beginning of the pandemic because of good customer service and ease of use.”
61% of respondents listed safety and security as very important when choosing which bank to open an account with, more than any other factor, including interest rates or fees.
Some other notable highlights from the results include:
- More than three quarters of Americans (76%) have, have had, or would consider opening an account with an online-only bank or institution
- 31% of those who have or have had an account with an online-only banking institution opened that account since the beginning of the pandemic (within the last 12 months)
- The most common reason for opening an account with an online-only institution was good customer service (49% said this), with Interest rate (48%) and ease of use (43%) the next closest.
Says McLaughlin: “We heard two messages loud and clear from the respondents: that Americans really are worried about the long term impact of the pandemic on their finances, and they have taken the pandemic as an opportunity to act on them by seeking out savings products that afford them with safety and convenience.”
Highlights of the survey:
SaveBetter.com is a new way for Americans to grow their savings potential with a focus on safety, convenience, and choice. SaveBetter.com offers access to competitive high-yield savings products through a single account that can be set up in a matter of minutes. SaveBetter.com gives account users the freedom to easily diversify their savings portfolio with products offered from a curated network of FDIC member savings banks. It’s a new way to help Americans follow through on their long-term savings goals.
SaveBetter.com is operated by SaveBetter LLC, a 100% subsidiary of Deposit Solutions LLC. Deposit Solutions is a registered trademark of Deposit Solutions GmbH. SaveBetter is a trademark of SaveBetter LLC.