Seven in 10 Americans say COVID-19 has damaged their retirement and retirement preparation, with one in five saying the pandemic has delivered a serious blow to their retirement plans.(1)

This assessment puts COVID-19’s retirement impact on par with the widespread damage to retirement plans caused by the Great Recession of 2007-2009. Six in ten Americans said their retirement plans were disrupted by the Great Recession – with one in five saying their retirement plans were severely affected.

In fact, the financial and job disruption caused by COVID-19 arrived as many were just starting to get back their financial footing. Forty-three percent of Americans say they were still recovering financially from the Great Recession when COVID-19 hit.

Many have been forced to prioritize short-term financial needs over retirement preparation. One in six say they have depleted emergency funds or savings, while one in ten have taken money out of their 401(k) accounts. 14% are setting aside less of their paychecks for retirement savings.(1)

More people are also planning to delay retirement. 54% of those planning to retire within the next five years say they will continue to work to address their savings gap.(2)

However, there is a silver lining: COVID-19 has also proven to be a financial wake-up call to many. About a third (34%) say the pandemic has made them want to improve their financial planning, and 39% said it has made them more willing to prioritize saving for their future.(3)