How the Great Recession Changed Our Habits

Five years later, people feel more prepared for retirement and are making bigger contributions to their 401Ks. Most have less debt, too.

How the Great Recession Changed Our Habits Photo (cc) by Alan Cleaver

Fidelity Investments released a new survey of 1,154 people indicating the recession’s sobering lessons seem to have stuck.

The Associated Press reported on the findings, which indicate Americans lost an average of one-third the value of their assets at the bottom of the crisis. Just over a third said they had a “large drop” in income during the period.

More than half (56 percent) have shifted from feeling scared about their financial future to feeling confident. About the same number say they feel more prepared for retirement, and 42 percent have boosted contributions to retirement accounts.

About half have reduced personal debt and more than two in five have built up an emergency fund. 78 percent of the people who feel better prepared and more confident think the crisis led to permanent changes in their behavior.

Participants in the survey were randomly selected adults older than 25, made financial decisions for their homes, and owned investments beyond a savings account or CD. (But the amount didn’t matter, so they weren’t necessarily wealthy.)

Trending Stories

New! Solutions to Common Financial Struggles for People 50 and Older

New! Solutions to Common Financial Struggles for People 50 and Older

We've partnered with the largest nonprofit consumer counseling agency in the country to offer solutions to the most common financial struggles facing seniors including Medicare assistance, debt and budget counseling, Social Security maximization, help with paying bills, reverse mortgage counseling and foreclosure prevention.

77 Uses for Baking Soda — and How It Could Save Your Life

9 Ways to Get Cheap or Free Vet Care for Your Pet

8 Spectacularly Scenic Road Trips for Enjoying Fall Foliage

Comments

1,669 Active Deals

More Deals