Nearly a third of Americans are concerned about the loss of savings (33%) and job loss (30%) due to COVID-19, according to a recent survey by the Nationwide Retirement Institute.
Two key findings:
- About half of Americans (49%) said COVID-19 made them realize that they need help managing their finances and investments in order to thrive in the future.
- Around half of respondents agree that due to the COVID-19 pandemic, they have recognized the need for pensions to protect their investments against market risk (47%) and their retirement income (48%).
The COVID-19 crisis affects us all, said John Carter, president and COO of Nationwide Financial, in an interview. “It’s very difficult,” he said. “It affects our emotional side, our attitude to life, concerns about our physical and financial well-being and our decision-making. It makes us all feel a certain loss of control and realize that many of us have blind spots and how we plan, especially our financial future. “
Many Americans are responding to this crisis in different ways, some even tapping into their retirement savings and increasing the risk of losing money during these uncertain times.
What steps can Americans take in this unprecedented time?
According to Carter, financial advisors can help. “Financial advisors can help you identify your blind spots, identify solutions that could protect you, avoid emotional reactions, and stay focused over the long term,” he said.
Carter also suggested a few questions to ask a counselor:
- What solutions do I have for short-term challenges?
- How will my actions today affect my long-term plan?
- How can I protect myself from the next financial crisis?
“We strongly encourage American savers to work with advisors, and you can find advisors by asking friends, colleagues, or family members,” Carter said.