53% Earning Half Or Less Of Their Pre-COVID-19 Income, Survey Finds – InsuranceNewsNet

InsuranceNewsNet — Your Industry. One Source.™

Sign in
  • Subscribe
  • About
  • Advertise
  • Contact
Home Now reading Life Insurance
Topics
    • Life Insurance
    • Annuity News
    • Health/Employee Benefits
    • Property and Casualty
    • Advisor News
    • Washington Wire
    • Regulation News
    • Sponsored Content
    • Webinars
    • Monthly Focus
  • INN Exclusives
  • NewsWires
  • Magazine
  • Free Newsletters
Sign in or register to be an INNsider.
  • INN Exclusives
  • NewsWires
  • Magazine
  • Free Newsletters
  • Insider
  • About
  • Advertise
  • Editorial Staff
  • Contact
  • Newsletters

Get Social

  • Facebook
  • Twitter
  • LinkedIn
Advisor News
Life Insurance RSS Get our newsletter
Order Prints
August 11, 2020 Life Insurance No comments
Share
Share
Tweet
Email

53% Earning Half Or Less Of Their Pre-COVID-19 Income, Survey Finds

By Press Release

Boulder, CO, August 11, 2020 - According to a survey of more than 1,100 U.S.-based respondents interested in flexible work, more than half (53%) of people are currently earning half or less of their pre-pandemic income. Approximately one-third (31%) of respondents have lost their entire income since the pandemic started. This survey was conducted by FlexJobs, fielded in partnership with Prudential (1), in late June 2020.

Almost half (46%) say their emergency savings wouldn’t last them more than three months and roughly a quarter (24%) said their savings would not even last one month. Overall, 62% of those surveyed do not have enough emergency savings to last six months.

Lack of Financial Wellness: 

As a result of the pandemic, many have experienced a significant shift in their financial stability:

  • 44% of respondents reported that they are currently struggling financially, whereas only 24% reported the same thing before the pandemic
  • 21% said they were financially secure before COVID-19, and only 10% say the same thing now.

Immediate Financial Steps Taken:

84% of respondents are taking specific steps regarding their finances, many of which may have a negative long-term impact on their financial health, especially on their retirement planning.

Collectively, 1 in 5 respondents made changes to their retirement savings, including stopping or reducing retirement contributions (12%) or withdrawing from their retirement savings (8%).

Other actions that people have taken or plan to take in the next three to six months to address their financial situation as a result of COVID-19 are:

  • Try to pick-up extra work/hours, looking for sources of additional income (49%)
  • Build my emergency savings (28%)
  • File for unemployment (28%)
  • Delay a major purchase, such as a car (25%)
  • Use my emergency savings (23%)

“At FlexJobs, we are deeply aware of how intricately jobs and finances are intertwined, which is why we have partnered with Prudential to gain a better understanding of the challenges that many people are now facing,” said Sara Sutton, Founder and CEO of FlexJobs. “We also co-hosted a financial wellness educational webinar to help educate workers about financial steps they can take during the pandemic and beyond. For the longer term, we established a financial wellness resource center to support their growing financial literacy and ultimately help them reach their financial goals,” Sutton concluded.

Pre-COVID-19 Finances:

The pandemic has only exacerbated tenuous financial conditions for many in the flexible workforce.

  • Just 30% agreed that they had a good plan in place in case they got sick or needed care in the short-term, and even fewer strongly agreed (12%).
  • Although over two-thirds say personal financial wellness is a key priority, only 50% agreed that they felt prepared to make informed decisions about their finances. When asked what’s keeping them back from feeling well-prepared, respondents cited the following obstacles:
    • Don’t know how to evaluate the different options (27%)
    • Don’t know what options are even available to them (23%)
    • Didn’t have strong role models when it comes to finances (23%)
    • Don’t understand the financial terms/jargon used (21%)
    • Not earning enough money (44%), high cost of living expenses (35%) and too much debt (26%) were the top reported reasons for not meeting financial goals before COVID-19.
  • Other factors preventing people from reaching their financial goals included not being disciplined enough about finances (23%), not having enough time to focus on financial goals (16%), and not having access to workplace benefits (e.g., health/dental/vision insurance, paid time off, disability insurance) (15%).

“The pandemic exposed the widening gap between the financially secure and insecure in this country – with people of color, women, younger generations, gig workers, and the retail workforce disproportionately impacted,” said Dawn Goldbacher, Vice President of Business Development at Prudential. “Access to protection, savings, education, and employment opportunities through the workplace and other channels are essential to recovery.”

Financial Products Accessed:

Respondents indicated that they or their spouses had:

Financial products: 97% have at least one kind of financial product

  1. Checking accounts, savings accounts, money market accounts, or certificates of deposit (93%)
  2. Employer-sponsored retirement plan (401(k), 403(b), 457, pension, etc.) (52%)
  3. Individual Retirement Account (IRA) that is NOT employer-sponsored (41%)
  4. Investment accounts, NOT retirement-related (Individual stocks/bonds, mutual funds, ETFs, etc.) (31%)
  5. Health Savings Account (25%)
  6. Education investment or savings account (529, Coverdell, etc.) (10%)

Insurance products: 87% have at least one kind of insurance product

  1. Health insurance through an employer (57%)
  2. Life insurance through your employer (33%)
  3. Life insurance purchased on your own (not through an employer) (31%)
  4. Health insurance not purchased through your employer (ACA, private plans, long-term care, critical illness, etc.) (26%)
  5. Disability insurance (14%)
  6. None of these (13%)
  7. Fixed or Variable Annuity (4%)

Estate planning products: More than half do not have any estate planning products

  1. Will, estate plan, or trust (33%)
  2. Healthcare proxy, living will, or power of attorney (24%)
  3. None (56%)

On the Job Highlights:

  • 46% of full-time employed respondents said their regular job was temporarily being done from home; 20% of total respondents were already working remotely
  • 24% are currently using remote work to supplement their income
  • If given a choice, 71% would prefer to work remotely full-time once the pandemic is over, and 25% would prefer a combination of remote and office work
  • 56% say they view remote work more favorably as a result of the pandemic
  • Roughly 1 in 5 (22%) are hoping to find a part-time or side gig to earn supplemental income

*Methodology

Demographic breakdown of the 1,100 U.S.-based respondents interested in flexible work. Gender: female (81%), Male (17%) Prefer not to identify (2%) Ages: 20-39 (29%), 40-59 (53%), 60+ (18%); Education: high school degree or equivalent (4%), some college but no degree (15%), associate or bachelor’s degree (48%), graduate degree (33%); Career level: entry-level (11%), experienced (56%), manager (21%), senior level or higher (12%). Household income: Less than less than $50,000 (35%), $50,000 to less than $75,000 (18%); $75,000 to less than $100,000 (17%), $100,000 to less than $150,000 (17%), $150,000+ (13%). 34% of respondents were unemployed and looking for work.

 

Older

Only A Can-Do Attitude Will Beat Covid-19: Column

Newer

Top Annuity Seller Jackson National Set Free By Prudential Plc.

Advisor News

  • Teach your clients effective strategies for today’s retirement
  • Consumers are pulling back on spending. They're also tapping savings and taking on debt.
  • Banks announce dividend plansTruist, Wells Fargo, Bank of America announce dividend hike plans
  • Jerry Shenk: Social Security demagoguery
  • Rick Kahler: My state flunked financial literacy. How about yours?
More Advisor News

Annuity News

  • Winning $300 million Powerball ticket purchased in Middlebury
  • Sammons names Kevin Mechtley to newly created product innovation role
  • Athene completes pension group annuity deal with Lockheed Martin
  • Integrity expands annuity, life insurance distribution with Annuity Agents Alliance
  • Nationwide increases roll-up rate, payout percentage on L.inc+ suite
Sponsor
More Annuity News

Health/Employee Benefits News

  • Aetna drops prior authorization for most cataract surgeries
  • Despite recession fears, employers look to enhance benefits in 2023
  • How will Roe v. Wade reversal impact employee health plans?
  • Jury still out on new insurance plan for Idaho schools
  • Citadel reaches $7.85M settlement over switching patients to boost Medicare payments
More Health/Employee Benefits News

Property and Casualty News

  • Tropical Storm Bonnie expected in Caribbean, while another system churns in Gulf
  • Cigna completes $5.4 billion transaction with Chubb
  • Insurance hikes just first hit for Surfside, Florida condo owners
  • Own your home in Idaho? You may soon pay more for insurance. A lot more.
  • Editorial: Citizens lawsuit numbers ridiculous burden for Florida residents
More Property and Casualty News

- Presented By -

How to Write For InsuranceNewsNet

Find out how you can submit content for publishing on our website.
View Guidelines

FEATURED OFFERS

It’s time for John Hancock Insurance • See how our cutting-edge solutions can help you grow your life insurance business. Get to know us.
Grow your life insurance business with John Hancock • It’s time to see how our cutting-edge solutions can help you and your clients get to know us.

Press ReleasesAll press releases

  • iPipeline® Provides Advisors Excel with Unified Path Toward Accessing Core Data Analytics in Financial Services
  • iPipeline® Adds Speed of Underwriting to Quote Engine with Ethos to Deliver Insurance to Agents in Minutes
  • National Life Will Host Annual Investor Call
  • RFP #T01622
  • OneAmerica Commits $1 Million Toward Financial Literacy
Add your Press Release >

Topics

  • Life Insurance
  • Annuity News
  • Health/Employee Benefits
  • Property and Casualty
  • Advisor News
  • Washington Wire
  • Regulation News
  • Sponsored Content
  • Webinars
  • Monthly Focus

Top Sections

  • Life Insurance
  • Annuity News
  • Health/Employee Benefits News
  • Property and Casualty News
  • AdvisorNews
  • Washington Wire
  • Insurance Webinars

Our Company

  • About
  • Editorial Staff
  • Magazine
  • Write for INN
  • Advertise
  • Contact

Sign up for our FREE e-Newsletter!

Get breaking news, exclusive stories, and money- making insights straight into your inbox.

select Newsletter Options
Facebook Linkedin Twitter
© 2022 InsuranceNewsNet.com, Inc. All rights reserved.
  • Terms & Conditions
  • Privacy Policy
  • AdvisorNews

Sign in with your INNsider Account

Not registered? Become an INNsider.