Rebuilding Savings after Recession Could Take Years

According to a recent COUNTRY Financial survey, 58% of those closest to retirement (ages 50 to 64) had to dip into their savings to get through the recession.

Of those, 34% say it will take them two years or more to rebuild.  Half (51%) of respondents indicated they are prepared to handle another recession financially, yet a quarter of adults have no savings whatsoever to rely on.   

For those that had savings, 55% used that safety net during the recession, and 62% of them say it will take at least a year to rebuild their reserves.  

One-third (32%) of respondents say rising food and gas prices threaten their savings plans; Americans of all ages cited this as their biggest savings obstacle. Another 18% point to job loss or a pay cut as a key barrier.  

College loan debt and a high unemployment rate are also impacting Gen Y. Twenty percent say too much debt is their greatest obstacle to saving and investing, the highest among all age groups. Those ages 40 to 49 are most likely to say job loss or a large pay cut is the culprit for their inability to save (26%).  

“People who have a plan tend to feel more confident overall, even in the face of a double-dip recession. Seventy-four percent of those with a plan say they are prepared for a second downturn, compared to 41% of those without a plan,” added Keith Brannan, vice president of COUNTRY Financial.