With all the negative economic and financial consequences and hardships of the coronavirus pandemic worldwide, shockingly Americans seem to be saving money. Not all Americans of course (those who are out of work are having a terrible time of it) but many others are, quite simply because a lot of expenses are down.
The Northwestern Mutual research that has been published has shown that on average, from this time last year, there has been a 10% spike in personal savings. In 2019 the average savings figure was $59,737 and today it is $65,900. None of this money relates to retirement.
Furthermore, according to FRED Economic Data, the average amount people are saving escalated to nearly 40% in April. Since then it has been around 20% each month but that is compared to an approximate rate of 7.5% before the pandemic hit.
With approximately 37% of respondents reporting to be “feeling financially secure” these numbers are historically very impressive.