American adults have an average of $65,900 in their personal savings, a 10% increase from the $59,737 average reported in 2019, according to new research released Tuesday by Northwestern Mutual.
That amount specifically excludes funds earmarked for retirement.
Northwestern Mutual noted that this aligns with U.S. Bureau of Economic Analysis data, showing that the savings rate — the portion of monthly income that households are saving — hit a record 33.7% in April, and has hovered around 20% since then. Before the pandemic, the savings rate was approximately 7.5%.
The new study found that 37% of study participants felt financially secure, putting themselves between eight and 10 on a 10-point scale, compared with 16% who put themselves at the insecure end of the scale, between one and three.
However, that was seven percentage points below pre-pandemic levels. Moreover, a substantial minority of respondents appeared to be financially vulnerable, with 9% reporting no personal savings at all and 36% saying they did now know how much they had saved.
“People are dealing with wide and varying circumstances as a result of the pandemic, and many are taking action to increase what they can save,” Christian Mitchell, chief customer officer at Northwestern Mutual, said in a statement. “For those who can, adding to their emergency funds may help mitigate some of the widespread feelings of financial anxiety that so many Americans are confronting.”
The 2020 study, part of a research series conducted by The Harris Poll, included 2,702 American adults who participated in an online survey between June 26 and July 10.
Preparing for the Future
Although savings were up overall, survey participants expressed significant concerns about what could take place over the coming months and years, and how it might affect their finances.