Americans say they’re recovering from pandemic financial losses despite falling savings rate

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Despite the major disruption to the economy posed by COVID-19, new research suggests that most Americans feel good about their finances. The Northwestern Mutual 2022 Planning & Progress Study, which surveyed 2,381 American adults, found that while 60% of Americans say the pandemic affected their finances, around 43% of people say they’ve now recovered from all financial losses, and only 30% say they haven’t. Additionally, 73% of respondents report that their financial habits have improved because of the pandemic, and around two-thirds of Americans say they’re financially secure or are confident they will become financially secure. 

However, savings and financial prudence measures are down compared to last year: average personal savings sit at $62,000 in 2022, compared to $73,000 in 2021, according to the report. Fewer Americans this year say they’ve developed new financial health habits like reducing their living costs and paying off their debt.