State of Savings - August 2020

Our proprietary data reveals how individuals in the U.S. have changed their savings behaviors over the course
of the COVID-19 pandemic as business and travel restrictions disrupted our economy. Not surprisingly, we
saw notable shifts in savings plan contributions and withdrawals in the first few months of the outbreak, as
individuals experienced changes in employment and braced for the potential financial fallout.
Throughout the summer months, we’ve started to see some very early signs of recovery. Employers that dialed
back matching or discretionary contributions to their retirement plan are reconsidering this decision. Individuals
continue to make relatively lower one-time 529 account contributions compared to last year, but they’re also
refraining from withdrawing existing savings as they determine what the outlook will be for their beneficiaries’
education plans. The number of debit card transactions from consumer-directed healthcare accounts spiked
above projections for the month of July, as individuals tapped into their health savings to access services from
their healthcare providers who might have previously experienced business closures or delays in service.

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