COVID-19 Super Savers Need to Carefully Navigate in a Post-Pandemic World

The pandemic has turned many people into saving machines, which is great, but that comes with its own set of risks. These frugal folks need to be extra careful right about now because they could be especially vulnerable as we return to normalcy.

A man rips his shirt open to reveal a a piggy bank emblazoned on his chest.
(Image credit: Getty Images)

A little over a year ago, COVID-19 hit the United States, altering the fabric of our daily lives and turning the average American's personal finances upside down. Within weeks, 52% of all households slashed their spending. From all the upheaval and radical change emerged a new generation of risk-averse, financially conservative people: Meet the super savers.

After COVID reached the United States, we saw a pronounced jump nationwide in the personal savings rate — the amount of people’s disposable income that gets saved or invested. For the last two decades that savings rate sat at just under 10%. In April of 2020 it exploded to 33.7%, more than three times its usual number, according to Federal Reserve data.

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Securities and investment advisory services offered through Royal Alliance Associates Inc., (RAA), member FINRA / SIPC. RAA is separately owned, and other entities and/or marking names, products or services referenced here are independent of RAA.

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

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Adam Lampe
CEO and Co-Founder, Mint Wealth Management

For more than 18 years, Adam Lampe has helped high net-worth-individuals, affluent families, foundations and institutions work toward their financial goals through holistic financial planning. As the CEO & Co-Founder of Mint Wealth Management, he leads all development efforts within the firm. Alongside his extensive work serving clients, Adam also teaches retirement planning courses through Lone Star College and Prairie View A&M University satellite campuses around Houston.