More than half of Americans say they are in financial recovery mode

Northwestern Mutual survey finds most respondents' financial planning is focused on the short term, with only 14% actively planning more than five years out.

While 58% of U.S. adults say they are in financial recovery mode as a result of the pandemic, 89% of them are confident they will ultimately achieve a full financial comeback.

That’s the key finding of a survey conducted by Northwestern Mutual, which found that average personal savings rose more than 10%, from $65,900 last year to $73,100 currently, and average retirement savings increased 13%, from $87,500 to $98,800.

The survey also found that while 33% of people say they have been able to save more over the last year, 31% say they are saving less or stopped saving altogether and 9% say they have had to dig into savings and are going backwards.

Among those who say they are in financial recovery mode, the survey found that only 14% are actively planning more than five years out, while 24% are planning month-to-month.

“Maintaining momentum over time will require a long-term view, and the study shows that planning horizons today are quite short,” Northwestern Mutual said in a release.

The survey of 2,320 Americans 18 or older was conducted between March 16 and March 26.

[More: 82% of Americans say Covid affected their retirement plans]