What You Need to Know
- About 19% of survey participants said their income increased in 2020.
- Most survey participants said they're saving money.
- Many consumers without advisors need help with dealing with debt.
The hot new investment these days may be a rainy day fund.
The Million Dollar Round Table (MDRT) looks at what consumers want, and need, in a new batch of results from a survey of 2,034 U.S. adults, ages 18 and older, that was conducted in November 2020, as the third U.S. wave of the COVID-19 pandemic was beginning.
MDRT is a Park Ridge, Illinois-based group for top sellers of life insurance, annuities and other insurance and financial services products. Its surveys serve as a supplement to the kinds of household finance surveys sponsored by the Federal Reserve Board and other governmental and academic organizations.
About 68% of the MDRT survey participants had investments of some kind, according to the public results summary and the survey executive summary.
The pandemic hit the finances of many of the survey participants hard: 19% said their income rose in 2020, but 35% said their income fell.
About 82% of all of the participants said they were saving money, and many of them reported aiming more for liquidity than for a secure retirement.
Here are those participants’ top reasons for saving:
- Emergency Funds: 43%
- Rainy Day Funds: 36%
- Retirement Savings: 32%
MDRT did not provide separate income data for survey participants with advisors and the participants without advisors.