A return to pre-COVID-19 financial status not good enough: report
Commonwealth survey finds 70 percent say that factors beyond a person’s control play a part in financial insecurity.
As COVID-19 ravages the U.S. economy, a sampling of Americans across the income spectrum say that financial insecurity is a “big problem,” according to a recent study,
The survey, conducted by Commonwealth and supported by MetLife, said that 81 percent of 2,000 people it surveyed perceived financial insecurity as a major concern.
According to the report, 75 percent of those surveyed have experienced financial insecurity and 85 percent of that group said it is a problem that could affect anyone.
The cause of the insecurity, according to those surveyed, isn’t irresponsible spending habits, but external factors.
The majority, 70 percent, said that factors beyond a person’s control, like systemic issues, the rising cost of living, stagnant wages, and racial and gender pay disparities, all play a part in financial insecurity. Half of the survey’s respondents said that “historical discriminatory practices continue to prevent People of Color and women from having equal access to financial opportunities today.”
Additionally, the report said that “unsurprisingly,” personal experience influenced perceptions of financial security.
“Black respondents, women, those making under $60,000, and those currently experiencing financial insecurity were more likely to identify the significant role of external factors,” the report said.
Lastly, those surveyed said institutions are responsible for ensuring greater financial security, be they public, private, or governmental. The report said employers would benefit from increased financial security among employees, pointing to data from MetLife showing that corporations spend $250 billion a year due to decreased productivity caused by financial stress, with personal finances being the number one stressor among workers.
“Financial insecurity is a widespread problem demanding the attention of our nation’s largest and most infuential private and public institutions. It is both a responsibility and an opportunity. We must commit to an equitable and secure economy, attend to the structures and incentives–large and small–that have created our current predicament, and share our vision across sectors and ideologies,” researchers said in the survey report.
“Returning to America prior to the upheaval of 2020 is not good enough,” the report continued. “For those with a vested interest in addressing financial security–and to be clear, that’s nearly everyone–we have an opportunity to light a pathway for America’s institutions and financial system to make a secure, equitable economy a primary long-term goal, with moral and practical rewards across society. Our goal must be financial security and opportunity for all.”
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