The COVID-19 pandemic caused widespread economic disruptions, significantly affecting the financial stability of fixed-income earners in Kerala. With strict lockdowns, job uncertainties, and rising healthcare expenses, many individuals struggled to maintain their savings. Essential household costs and medical emergencies led to a notable decline in savings for a majority of fixed-income groups. However, the pandemic also limited discretionary spending on non-essential activities such as travel, dining out, and entertainment, enabling a segment of this population to increase their savings. This study examines the varied impact of COVID-19 on the saving patterns of fixed-income individuals in Kerala, identifying key factors that contributed to both the depletion and growth of savings. The findings reveal that financial preparedness and access to emergency funds were crucial in managing economic stress during the pandemic. The study emphasizes the importance of strengthening financial literacy, promoting disciplined savings habits, and developing effective government support programs to protect the financial security of fixed-income groups during future economic crises