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There's no "enforced savings" that I know of in Europe. 3.50% in the US sounds extremely low to me. It has fallen a bit recently but the savings rate was about
by seszett 9mo ago
There's no "enforced savings" that I know of in Europe.
3.50% in the US sounds extremely low to me. It has fallen a bit recently but the savings rate was about 25% in France in 2020. Common knowledge says to strive to save at the very least 10% of one's revenue around here.
- Hamuko 9mo agoAccording to some sources, 1 in 4 Americans don't/can't save at all. https://edition.cnn.com/2025/11/13/economy/job-prices-debt-economy https://edition.cnn.com/2025/11/13/economy/job-prices-debt-e...
- thatguy0900 9mo agoThere is a very large and growing portion of the US that maintains no savings at all. In fact it's the opposite and many are slowly spending their way into perpetual credit card debt.
- direwolf20 9mo agoIt's essential to the way the system works. One person's money is another person's debt. Normally the government would take on enough debt to ensure everyone had money, but the USA is a weird case.
- lotsofpulp 9mo agoMoney and debt are just mechanisms to allocate resources. The government can print infinite money like Zimbabwe and it wouldn’t matter if there aren’t enough resources to allocate.
- Epa095 9mo agoIt seems like savings include pension ([1], but it is a bit unclear to me) , and that is a kind of forced saving (as in many places in Europe you can't choose to not get pension and get it as cash to spend instead). 1: https://ec.europa.eu/eurostat/statistics-explained/index.php?title=Glossary:Household_saving https://ec.europa.eu/eurostat/statistics-explained/index.php...
- victorbjorklund 9mo agoSounds like they don’t count that. They seem to only count disposable income and payments the company does to your retirement aren’t really disposable
- seszett 9mo agoIt's not clear to me either, but as I understand it it doesn't include pensions because social contributions are not part of "disposable income". I think that "the net adjustment for change in pension entitlements" is there to take into account the expected reduced future income from pension entitlements dwindling over time (edit: in effect, making pensions count as negative savings) somehow, but it's unclear. I looked for another perspective but the French national bank doesn't mention pensions in its explanations[0]. [0] https://www.banque-france.fr/system/files/2024-08/epargne-des-menages.pdf https://www.banque-france.fr/system/files/2024-08/epargne-de...
- mkjs 9mo agoThe UK has "enforced savings" in the form of auto-enrollment pensions for over 10 years. Looks like Ireland is just starting to do it too.