Consumers have notably focused on savings in the volatile economic environment brought on by the coronavirus pandemic.
The U.S. personal savings rate, a measure of the percentage of disposable income saved by households, skyrocketed to 33.6% in April, up from 12.9% in March, MagnifyMoney reported Wednesday.
Researchers examined savings and retirement data from before and after the crisis erupted in order to determine how the pandemic has altered American consumers’ savings.
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According to the report, the 160.5% month-over-month increase in savings indicates that consumers used unemployment benefits and economic impact payments to supplement their savings accounts after the pandemic erupted and unemployment soared to record levels.
Monthly unemployment insurance benefits spiked to nearly $24 billion in May before dropping to $16 billion in August, MagnifyMoney said. And the personal savings rate has dropped monthly since April to 14.1% in August.
According to the report, 31% of American households report that they or someone in their family has used all or most of their savings during the coronavirus crisis.