COVID-19 Impacts on Retirement Savings Vary By Key Demographic Factors

William Asher
Published May 30, 2025


One of the biggest impacts the COVID-19 pandemic has had on Americans is the huge financial hit it has caused. Many Americans have found themselves unable to put enough food on the table, pay for prescriptions or pay rent, and saving for retirement is well out of reach for many. In a report from The Penny Hoarder on January 6, researchers found that gender, age and geographic location were confounding factors on the pandemic's impact on retirement savings.

COVID-19 Made It More Difficult to Save for Retirement


Retiring isn't cheap. For decades, Americans have struggled to save enough for what should be their "golden years." Economic difficulties that lead to turbulent markets, widespread job losses and high inflation only enhanced the difficulty that people had with saving for the future. During the pandemic, tens of millions of Americans lost their jobs. Those who were already retired or semi-retired and working part-time also found themselves in a difficult situation. Their investment values plummeted, or the part-time jobs they had dried up when government authorities ordered shutdowns in order to mitigate the spread of COVID-19. Some seniors chose to leave their jobs and stay safe at home. Others had to step up and help family members who lost childcare when childcare centers and schools closed for months.

How Many Americans' Retirement Savings Have Been Affected By the Pandemic


About 17% of working Americans say they're saving less money for their retirement as a result of the COVID-19 pandemic. Surprisingly, about 16% say they've been able to save more money. White-collar workers who were able to work from home saved more because they weren't spending money on take-out, coffee from pricey coffee shops, fuel and vehicle maintenance, parking and other work-related expenses.

Who Has Been Affected By Pandemic-related Drops in Retirement Savings


Just like the job losses caused by the COVID-19 pandemic were not uniform across ages, industries, education levels, genders or income levels, the impacts on retirement savings are also out of sync. Geography, gender and age all played an impact on a person's ability to save for retirement over the past two years.

Location of Residence


Residents in the Northeast were more likely to have enough money each month to save for retirement compared to those in other parts of the country. Of those who said they have saved more for retirement since the onset of the pandemic, 44% reside in the Northeast and 14% reside in the South. Among those saving less, 31% live in the South. A state's minimum age, unemployment rate, cost of living and dependence on tourism also factored into whether or not the residents were saving more or less money for retirement during the COVID-19 pandemic.

Gender


Fewer men than women have lost their jobs since the start of the COVID-19 pandemic, and it makes sense that men were more likely than women to be able to save more for retirement during the past two years. About 59% of men reported saving more compared to 41% of women. Before the pandemic, this gender gap was not as wide. A 2019 Bank of America report noted that women start retirement with $70,000 less than men. Women have a longer life expectancy, so they have to live longer on less money. Women were also more likely to work in sectors of the economy that were hard-hit by shutdowns. These industries include hospitality, retail, childcare and personal care services.

Age


Surprisingly, Millennials were more likely to save more for retirement during the COVID-19 pandemic than any other age group. Among Americans aged 25 to 34, 35% have saved more for retirement since the start of the pandemic. Of those who are saving less for retirement due to COVID-19, 25% are Gen Xers. Gen X will be the next generation to start retiring.

What the Pandemic Did to Existing Retirement Savings and Investments


The economic upheaval of the pandemic, especially on the stock market, demonstrated that even those who have saved were not immune from the havoc caused by the pandemic. Many saw their investments tumble in value during the first month of shutdowns. Turbulence in stocks caused some people to put their money elsewhere. Many chose cryptocurrency, but those investments have also proven volatile over the past two years. To the surprise of many, homes have been one of the best investments, with sales prices increasing 20% over the past 12 months.


Related Articles

Preparing for the Unthinkable: What Retirement Looks Like Without Social Security...

What if Social Security suddenly disappeared? With millions depending on the program, even a benefit reduction could be financially devastating. But rather than panic, experts say now is t...

Social Security Retirement: All the 2025 Requirements You Must Meet...

Planning to apply for Social Security retirement benefits in 2025? It’s essential to understand the key requirements set by the Social Security Administration (SSA) before you can start receiving ...

Social Security Confirms Minimum Requirements for Retirement Pension in April 2025 — Will You Qualify?...

Americans rely on Social Security as a vital monthly income to help cover bills, utility expenses, and daily living costs. If you’re planning to claim your ret...

It's Not Too Late - Start Saving For Retirement Today!...

We should all do our part to contribute toward society by working in our youth, whether we work as factory workers, as business owners, or as teachers. When we reach a certain age, it's time to step down and ...

Overcoming Retirement Challenges: 8 Strategies for a Secure Future...

Retirement, a long-awaited phase of life, can bring about a mix of emotions ranging from excitement to uncertainty. While it marks the end of the traditional working years, it ushers in a new era of fre...

Your Comprehensive Guide to Preparing for Retirement...

Retirement is a significant milestone in life that offers the promise of relaxation, new adventures, and cherished moments. As you approach this chapter, planning ahead and making informed decisions is essential to e...

Get senior benefits assistance

Get personalized help to unlock your senior benefits—no hassle, just support.
Get Started