The COVID-19 pandemic created significant financial challenges for many businesses, individuals, and families. In January 2020, the unemployment rate in Atlanta was 3.2% but by June it had more than doubled to 7.6%. These numbers reflect how the fear of virus transmission and new government orders conspired to create adverse circumstances. While companies were busy adapting operations to find new ways to serve customers, individuals and families were re-assessing financial priorities to weather the storm. In some cases, they had to rely on retirement plan savings by taking out plan loans or early distributions. Despite this, it is surprising to learn the pandemic did not have a significant impact on retirement savings. According to the EBRI 2021 Retirement Confidence Survey, only 31% of respondents made changes to retirement plan contributions during the pandemic. In addition, it was also found that only 28% relied on retirement savings to help manage expenses during the same period. The survey also uncovered other insights on retirement planning. To help clients, prospects, and others, Wilson Lewis has provided a summary of the key details below.
The survey was conducted online between January 5th and January 25th, 2021, and includes responses from 3,017 participants. This includes 1,507 individuals currently employed and 1,510 retirees with an oversample of roughly 500 Black Americans and Hispanic Americans. All respondents were ages 25 or older.
The results provide important details which employers and plan sponsors can use to elevate the value of their company-sponsored retirement plan. While COVID did not cause a significant reduction in retirement savings, there are important “value-added” options that can be provided to help participants on the savings journey. If you have questions about the information outlined above or need assistance with a retirement plan issue, Wilson Lewis can help. For additional information call us at 770-476-1004 or click here to contact us. We look forward to speaking with you soon.
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