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Is that a lot? Here's the Federal Reserve's record of it: https://fred.stlouisfed.org/series/PSAVERT https://fred.stlouisfed.org/series/PSAVERT It sounds lik
by jfengel 2y ago
Is that a lot?
Here's the Federal Reserve's record of it:
https://fred.stlouisfed.org/series/PSAVERT https://fred.stlouisfed.org/series/PSAVERT
It sounds like 4.8% is pretty much identical since the pandemic recovery.
Before that, it had been pretty steady at around 5.6%. Then the pandemic caused a huge spike followed by a slow decline. It bottomed out in 2022 and has reached a more or less stable rate above that, but below the prior long-term average.
So it sounds like the answer to my question is "It's OK, but not great."
- Kon-Peki 2y agoLooks like the "modern era" - post-1983ish, is about half of what it was prior to that. I clicked around on the BEA website and find that this is defined as the percentage of your after-tax money that you dedicate to savings. I wondered whether that does or does not include things like 401k contributions. I can't find an answer. I think that the early 1980s is when the 401k concept took off, right? Since this is a pre-tax allocation of your income, I wonder if they are not included and the drop since 1983ish is a result of people diverting funds into 401k accounts. Anyone know more about that?
- mooreds 2y agohttps://www.frbsf.org/research-and-insights/publications/doctor-econ/2005/08/401k-ira-national-savings-rate/ https://www.frbsf.org/research-and-insights/publications/doc... implies that 401k contributions are included in the personal savings rate (because they are not part of personal outlays). > Since IRA and 401(k) contributions are not part of personal outlays (and, therefore, must be included in the difference between personal income and personal outlays), these contributions are included in national saving computations.
- Kon-Peki 2y agoThanks! Figures you'd have to go to a completely different site to find the answer.