Around 38 percent of people who lost a job or had their income reduced due to the coronavirus pandemic cannot last more than a month off of savings, a new survey finds.
The bi-monthly survey published by SimplyWise found that nearly one in five of the cash-strapped respondents could not last more than two weeks off their savings, CNBC reported Wednesday.
“What are these people supposed to do?” asked Allie Fleder, chief operating officer of SimplyWise. “There’s just no good answer to this.”
Unemployment has soared during the pandemic, though many of the government safety measures meant to help those affected, such as the federal $600-a-week unemployment boost, have already expired.
The SimplyWise online survey was conducted with 1,128 American adult participants before the expanded jobless benefit ended.
According to the Bureau of Labor Statistics, the U.S. unemployment rate fell to 10.2 percent in July, down 0.9 percent from the previous month.
The survey found that 61 percent of participants who lost their job due to the coronavirus could not come up with $500 in cash without selling personal belongings.
The poll also reported significant financial uncertainty for older Americans, with 20 percent of respondents in their 60s reporting their jobs were furloughed in early July.
“The uncertainty for the average American, and especially for the older American, is just overwhelming,” Fleder said, adding that older Americans who lost their jobs could be forced to retire early and claim Social Security without other savings for support.