Americans saved an average of 4.6% of their disposable income in 2024. So far in 2025, that average is lower: 4.4%.
In fact, the average personal saving rate today is lower than it was in the 2010s — and even the 1960s.
What is the personal saving rate?
The Bureau of Economic Analysis (BEA) defines the personal saving rate as how much money American households put away — in a checking or savings account, an individual retirement account, or an employer-sponsored 401(k), to name a few — after paying expenses and taxes.
The personal savings rate only measures cash saved and doesn’t include capital gains like an increase in value of a house.
The BEA, a division of the Department of Commerce, measures and tracks this rate monthly.
How has the personal saving rate changed over time?
The personal saving rate in the 1960s and 1970s averaged 11.7%, peaking at 17.3% in May 1975. It’s gradually declined since then, reaching an all-time low of 1.4% in July 2005.
Although 2005’s all-time low preceded the Great Recession (2007–2009), a 2006 FDIC report offers several reasons for the especially low personal savings:
- High consumer debt: Higher credit borrowing led to a reduction of personal savings.
- Housing-related debt: Americans liquidated record amounts of home equity — turning home value into cash, often through borrowing — and spent it, increasing the amount of debt against homes.
- Strong economic indicators created a sense of financial security: Bank earnings hit a record in 2005 and return on assets held steady at 1.28% — matching 2004’s rate, second only to 2003 and the highest since 1984.
American savings during the Great Recession averaged 4.1%, and the 2010s average was 6.1%.
The COVID-19 pandemic introduced a savings anomaly: a massive spike, with Americans saving more than 10.0% of their earnings from March 2020 through April 2021, with peak savings in April 2020 (32.0%) and March 2021 (25.9%).
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Why aren’t Americans saving as much?
A range of factors impact savings. Inflation increases the food and energy costs, and wages don’t always keep up with inflation. Americans may bring home the same amount but then spend more money on the same utilities and groceries.
This also extends to housing. In 2023, nearly 33% of households were cost-burdened, spending more than 30% of their income on mortgage or rent.
Americans may also be saving in different ways: From 2019 to 2022 the percentage of American assets held in stocks rose from 15.2% to 20.0%.
Why does the personal saving rate matter?
The personal saving rate isn’t the only indicator of Americans’ financial health, but it does have short and long-term economic implications.
In the shorter term, rising personal savings can mean slower economic growth as people spend less. Consumer spending on goods and services is around 70% of economic activity, so fluctuations quickly impact corporate bottom lines.
In the longer term, higher saving rates can lead to greater capital accumulation, which supports future spending. Savings fund retirement, allow big purchases like cars and homes, and give people the ability to invest in education or other long-term goals.
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Page sources and methodology
All of the data on the page was sourced directly from government agencies. The analysis and final review was performed by USAFacts.
Federal Reserve Bank of St. Louis
Personal Saving Rate
