A majority of Americans are concerned about their finances and their job security because of the pandemic, but they also are taking steps to fix those situations, according to a Fidelity Investments’ survey released Monday.
Sixty percent of the 3,012 adults who were surveyed in April for the Market Sentiments Study said they are moderately or extremely concerned about their finances, and 43% said their concern is getting worse. In addition, a little more than half of the respondents had at least one investment account, and 62% said they are concerned about their job security.
“One would expect the uncertainty surrounding Covid-19 and related market volatility has amplified the stress levels Americans are feeling about their finances, as well as [affected] other aspects of daily life—from sleeping to eating habits.” Fidelity said in a press release. “There is no shortage of concern.”
However, the concern is prompting them to review their financial plans, cut back on spending and increase emergency savings, the study said. Fifty-one percent have a plan in place and another 11% said they are either in the process of completing one or they are going to make one. At the same time, 48% are cutting back on discretionary spending and 44% are increasing savings. Fifteen percent are putting new money into the stock market.
Millennials are outpacing Gen X and baby boomers in taking steps to improve their finances.
All age groups have specific ideas about what would ease their concerns, according to Fidelity. First, they want to have a financial plan in place to help deal with the current crisis while enabling them to reach longer-term goals. Second, they said they want to better understand how to prioritize savings. Finally, they want to have access to a financial professional to answer their questions.
Part of the problem of dealing with financial concerns is that nearly half of respondents said they do not have time right now due to the increased pressures at home and at work, and women seem to be suffering more than men. For instance, 48% of women said anxiety about finances has increased in recent weeks, while 37% of men acknowledged that pressures are increasing.