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 (URL). 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 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:
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:
“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 are dedicated to providing useful content around financial recovery and wellness to support their growing financial literacy and ultimately help them reach their financial goals, ” Sutton concluded.
The pandemic has only exacerbated tenuous financial conditions for many in the flexible workforce.
“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 Jake Biscoglio, Vice President of Strategic Growth Initiatives at Prudential. “Beyond a paycheck, employers play an essential role in providing meaningful resources and benefits that can support an inclusive recovery.”
Financial Products Accessed:
Respondents indicated that they or their spouses had:
Financial products: 97% have at least one kind of financial product
Insurance products: 87% have at least one kind of insurance product
Estate planning products: More than half do not have any estate planning products
On the Job Highlights:
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.
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