US Personal Savings Rate from 1960 - 2025 [Chart]
From piggy banks to paper-thin cushions, how America’s savings habit shrank over six decades from 14% in the 1970s to just 4% today.
Hello Eggsters. This week we’re asking: Are Americans saving less than they used to?
We charted the US personal saving rate (the share of disposable income households set aside instead of spending) from 1959 to 2025, courtesy of the FRED.
Chart of the Week
US Personal Saving Rate, 1960–2025.
The line shows decades of modest ups and downs, a wild COVID spike above 30%, and a sharp return to earth. Today, the savings rate is hovering around 3–4%.
Cracking it Open
The Long Decline: In the 1970s and early 1980s, Americans typically saved over 10% of their disposable income. Since then, the trend has been one of gradual erosion, drifting steadily downward over the decades.
The Housing Boom Years (2005–2008): Savings fell to record lows, often below 3%. With home values surging, easy credit flowing, and stock markets rising, many households felt wealthier on paper and saved less in practice. That left families particularly exposed when the financial crisis hit in 2007.
The COVID Spike: In 2020, savings briefly soared above 30%. A perfect storm of stimulus payments, lockdowns, and fewer ways to spend.
The Return to Earth: Since then, the rate has collapsed back to around 4.4%. Not quite as low as the mid-2000s, but still well below the long-term average.
Why it Matters
Savings aren’t just a personal cushion; they’re the backbone of long-term financial health. At the household level, low savings mean less money for emergencies, college funds, and retirement accounts. At the national level, it means less fuel for investment and a greater reliance on debt to fund growth.
When the saving rate dips, families become more vulnerable to job losses, medical bills, or economic shocks. That vulnerability was on full display in 2008, when households with little in reserve were hit hardest. Today, even at 4.4%, the rate signals households are keeping slimmer buffers than in most of the past 60 years.
Low savings can feel fine in the moment. The economy even gets a short-term boost from extra spending. But over time, it risks trading resilience for fragility.