How Does the US Savings Rate Compare to Other Countries?

Personal savings are a fundamental component of financial stability for individuals and a significant indicator of a nation’s economic health. Households setting aside income directly influences their future financial security, providing a buffer against unforeseen circumstances and enabling long-term goal attainment. On a broader scale, aggregate personal savings contribute to capital formation, funding business investments, fostering innovation, and supporting sustained economic growth.

Defining and Measuring Savings Rates

The personal savings rate represents the percentage of after-tax income individuals save rather than spend. It is calculated as personal saving as a percentage of disposable personal income (DPI). Disposable personal income is the money households have left after personal income taxes. Personal saving is determined by subtracting personal outlays, including expenditures, interest payments, and transfer payments, from disposable personal income.

In the United States, the U.S. Bureau of Economic Analysis (BEA) measures and publishes the personal savings rate. For international comparisons, organizations like the OECD present “household saving rates,” which are broadly comparable to personal saving rates despite minor definitional differences.

The US Savings Landscape

The personal savings rate in the United States has experienced notable fluctuations, reflecting shifts in consumer behavior and economic conditions. Historically, the average U.S. personal savings rate from 1959 until July 2025 was approximately 8.39 percent, though it reached a record low of 1.4 percent in July 2005.

A dramatic increase occurred in April 2020, surging to an all-time high of 32.0 percent, influenced by reduced spending and government stimulus during the initial phase of the COVID-19 pandemic. Following this peak, the rate trended downwards as economic activity resumed. In July 2025, the U.S. personal savings rate was 4.4 percent, unchanged from June 2025. This was slightly lower than 4.6 percent in September 2024, and a modest increase from 3.7 percent at the close of 2023.

These trends indicate a general move towards lower savings rates in recent years compared to the historical average, though with temporary spikes during economic disruption. U.S. consumer behavior often prioritizes immediate consumption, influenced by access to credit and perceived economic stability. While a lower savings rate can indicate robust consumer spending, it also suggests less financial preparedness among households for future economic uncertainties.

International Savings Rate Comparisons

Comparing the United States’ personal savings rate with other major industrialized nations reveals distinct patterns in household financial behavior. While the U.S. personal savings rate was 4.4 percent in July 2025, many other developed economies often exhibit different saving habits. International comparisons typically rely on “household saving rates,” which are broadly similar to personal saving rates.

Among the G7 nations, notable differences exist. In early 2025, Canada’s rate was 5.7 percent, while France’s was 18.85 percent. Germany reported 10.2 percent, Italy 9.3 percent, and the United Kingdom 10.9 percent. Japan presented a unique case with a negative rate of -3.4 percent, indicating households spent more than their disposable income.

These figures position the United States towards the lower end of the G7 spectrum. Countries like France and Germany consistently demonstrate higher saving rates, suggesting a stronger propensity for households to retain a larger portion of their income. Japan’s negative rate highlights a distinct financial management approach, possibly driven by factors such as demographic shifts or sustained low interest rates.

Beyond the G7, other prominent OECD members also show varied savings behaviors. Switzerland reported very high household savings rates, reaching 24.2 percent in 2023. Sweden’s rate was 18.45 percent in 2023, and the Netherlands recorded 20.44 percent. These examples underscore that many developed economies maintain substantially higher household saving rates than the United States, reflecting diverse cultural, economic, and policy environments.

Influences on National Savings Behavior

The varying savings rates across nations are shaped by a complex interplay of economic, demographic, social, and governmental factors. Economic conditions play a significant role, as higher income levels generally correlate with a greater capacity to save. When economic growth is robust and employment is stable, households may feel more secure, potentially increasing their propensity to save for future goals or, conversely, spending more due to confidence. Interest rates also influence savings, with higher rates potentially incentivizing saving, while inflation can erode the value of savings.

Demographic structures within a country heavily influence its aggregate savings rate. Societies with a larger proportion of working-age individuals tend to have higher savings rates, as this demographic typically saves for retirement, housing, and other life events. Conversely, an aging population, with a larger share of retirees drawing down their savings, can lead to a lower national savings rate. Life expectancy and dependency ratios also factor into these patterns.

Societal attitudes and cultural norms regarding money, debt, and future planning significantly impact savings behavior. Some cultures promote frugality and saving for future generations, while others emphasize immediate consumption and leisure. The prevalence of consumerism and attitudes towards debt, including access to credit, can encourage or discourage saving. Financial literacy levels within a population also contribute, as individuals with a better understanding of financial concepts may be more inclined to save and invest effectively.

Government policies further shape national savings behavior. Tax incentives, such as deductions for contributions to retirement accounts like 401(k)s or IRAs in the United States, encourage individuals to save by reducing their taxable income. The design and generosity of social security systems and public pension programs can influence private savings; comprehensive government-provided retirement benefits might reduce the perceived need for extensive personal saving. Public debt levels and government spending patterns can also affect the overall national saving rate, as government deficits can offset private saving.