A construction worker stands at a building site

Pandemic perspectives: How government employees are gaining financial confidence

Jul 30, 2021
Empower Institute

Move over, COVID-19. Government workers are on a mission.

While the global pandemic, including the recent surge of the delta variant, has caused unimaginable challenges over the past year for millions of Americans, public sector employees have been stepping up in every imaginable way to get on the right financial track.1 They mean business, too. From saving more to spending less to sacrificing often, they’ve been doing a little of everything to pursue their longterm goals.2

“Everything changed,” says Kerri Smith, who works for the state of Wisconsin. “It really made me think about my future.”

Smith isn’t alone.

Through in-depth interviews with government savers, Empower Retirement has found that preparing for retirement remained a primary objective for most during the COVID-19 crisis. What was their secret? Despite facing a wide array of extraordinary events, such as doing their jobs remotely for the first time and dealing with heavy bouts of COVID fatigue,3 government employees protected their future by:

  • Making it “work”
  • Reshaping financial habits
  • Focusing forward
  • Getting guidance

As the leading provider of governmental deferred compensation programs in the nation, Empower recently met virtually with several government employees to see how their financial habits and strategies changed over the past year. While their views, circumstances and priorities were all unique, many were able to maintain a frugal approach in 2020 and focus on staying the course.4

For most, gaining financial confidence came through receiving the same valuable benefit — financial advice.

Downloadable document. Pandemic Perspectives research paper.

Download research paper

 

 

 

RO1742548-0721

1 Empower Institute and Personal Capital, “Back to (Financial) Basics,” January 2021.

2 Empower Financial Wellness Survey, April 2021.

3 Empower Institute, “Staying strong: How government retirement plans are fighting COVID fatigue,” September 2020.

4 Empower Institute, “‘State’ of the pandemic: How government retirement plans are tackling COVID-19,” April 2020.

Latest Empower Institute Articles

husband and wife at home speaking with financial advisor
Sep 30, 2021
Empower Institute

Complements, not substitutes

Based on this analysis, participants do not consider managed accounts to be substitutes for target date funds.

Carefully consider the investment option’s objectives, risks, fees and expenses. Contact Empower Retirement for a prospectus, summary prospectus for SEC-registered products or disclosure document for unregistered products, if available, containing this information. Read each carefully before investing.

Securities, when presented, are offered and/or distributed by GWFS Equities, Inc., Member FINRA/SIPC. GWFS is an affiliate of Empower Retirement, LLC; Great-West Funds, Inc.; and registered investment adviser, Advised Assets Group, LLC. This material is for informational purposes only and is not intended to provide investment, legal or tax recommendations or advice.

IMPORTANT: The projections, or other information generated on the website by the investment analysis tool regarding the likelihood of various investment outcomes, are hypothetical in nature, do not reflect actual investment results and are not guarantees of future results. The results may vary with each use and over time.

Investing involves risk, including possible loss of principal.

Insurance products are issued by or offered through Great-West Life & Annuity Insurance Company, Corporate Headquarters: Greenwood Village, CO; or in New York, by Great-West Life & Annuity Insurance Company of New York, Home Office: New York, NY. Guarantees are subject to the terms and conditions of the contract and the claims-paying ability of the insurer.

The managed account service is part of the Empower Retirement Advisory Services suite of services offered by Advised Assets Group, LLC, a registered investment adviser.

The Empower Institute is a research group within Empower Retirement, LLC.

All features may not currently be available and are subject to change without notice. ©2021 Empower Retirement, LLC. All rights reserved.

Unless otherwise noted: Not a Deposit | Not FDIC Insured | Not Bank Guaranteed | Funds May Lose Value | Not Insured by Any Federal Government Agency.