[ad_1]
MADISON, Wisconsin – Despite the challenges posed by the COVID-19 pandemic and resulting recession, the middle class is showing increased optimism and confidence in their financial security and retirement prospects – even as their savings remain strained, according to new survey data from CUNA Mutual Grouper.
When asked to rate the ability of the middle class to achieve the American Dream, respondents gave a B-minus, higher than March and May 2020, when the average mark was C-plus, as well as to May 2019, when the average score was a C. In addition, confidence in their personal economic situation increased. Specifically:
- 71% say they feel very or somewhat confident, higher than in March and May 2020 (63%), as well as in May 2019 (61%).
- The outlook for retirement has also become more positive – 89% of respondents plan to retire in their lifetime, up slightly from the 87% reported in May 2020.
- Those planning to retire before age 65 fell from 30% in May 2020 to 39% in April 2021.
Additionally, interviewees revealed that while the COVID-19 pandemic has dealt a noticeable blow, the impact may not have been as great as expected a year ago:
- More than half (57%) suffered setbacks as a result of the pandemic, and 35% reported physical or mental health issues.
- At the same time, 30% of those polled said the pandemic had reduced their financial stability, up from 38% in May 2020.
- Almost three-quarters (72%) said their jobs were the same or more stable than a year ago.
Importantly, however, even as the middle class feels more financially secure, their personal safety nets still tell a different story. Almost half (45%) have only three months or less of emergency savings, which is in line with May 2020 (47%).
“While it is encouraging to see growing optimism within the middle class, especially after a year of unprecedented losses and financial hardship, it is evident that the gap between awareness and preparedness is only widening. dig, ”said Paul Chong, senior vice president of CUNA Mutual Group. . “This further underlines that the retirement crisis is still very real and risks worsening when the pandemic is over. It is more important than ever for the financial services industry to focus on how to best meet the long-term planning needs of all hardworking Americans.
Reality Bites or are the kids okay?
The data also showed that Gen Xers were consistently more skeptical than other generational groups about their own financial prospects – but also about the scale of the pandemic that pushed them back – while the opposite was reported by Generation Z. More specifically:
| Generation X | Generation Z | Millennials | Baby boomers | |
| % with three months or less of emergency savings | 65% | 35% | 48% | 35% |
| % feeling a little less or not very confident in their economic situation | 44% | 20% | 24% | 26% |
| % who suffered setbacks due to the COVID-19 pandemic | 59% | 83% | 75% | 38% |
| % who experienced physical or mental health problems as a result of the pandemic | 38% | 47% | 45% | 25% |
| Plurality note on the ability of the middle class to achieve the American dream | VS | B | B | B |
Latinx is optimistic about the future of the middle class
The Latinx middle class – especially Latinx women – are more optimistic about the ability of the middle class to achieve the American Dream, but report less financial confidence and more challenges than other groups due to the COVID pandemic. 19. To note :
- 62% of Latinx respondents gave an A or B rating, higher than the general population (49%), led by Latinx women, who were the most positive of all racial and gender demographic groups (65%).
- However, when asked about their personal ability to achieve the American Dream, Latinx women were significantly weaker than Latinx men (66% vs. 71%).
- However, Latinx respondents were the most likely to report having suffered setbacks from the pandemic (80% vs. 57% of the general population), with more than half (51%) saying they had suffered setbacks for their mental or physical health. – especially more than the general population (35%).
- Latinx was the worst of all racial demographics when it came to emergency savings – 50% reported being three months or less, compared to 45% of the general population, led by 53% of Latinx women.
“The disparities we see among the Latinx middle class on key indicators of financial stability are concerning, although unfortunately not surprising given how much economic inequality has been – and continues to be – for communities of color.” said Steve Rick, chief economist, CUNA Mutual Group. “Especially given the impact of the COVID-19 pandemic on the Latinx community, it is absolutely paramount that action is taken holistically in our economy not only to bridge the K-shaped recovery that has started to emerge. , but to ensure more equitable access to financial security for all in the future.
Methodology
Based on the results of a general population survey conducted by ENGINE INSIGHTS from April 14-18, 2021, assessing 1,000 U.S. adults aged 18 or older with an annual income of between $ 35,000 and $ 99,999 – and an oversampling from April 19 to 22 with 800 Blacks and Hispanic men and women aged 18 or older with annual income between $ 35,000 and $ 99,999
[ad_2]
