What’s the Average Saving Rate in Europe and North America?

Personal saving rates are an important economic indicator, reflecting the portion of income households save rather than spend. These rates offer insights into the financial health of a population and can signal broader economic trends. They provide valuable context for economic stability and future growth. Analyzing these saving habits across different regions helps to illustrate varied approaches to financial security and consumption patterns.

Understanding Personal Saving Rates

A personal saving rate represents the percentage of disposable personal income that individuals save rather than spend on consumption. This metric is typically calculated by subtracting personal consumption expenditures from personal disposable income, then dividing the result by disposable personal income. Disposable personal income itself is defined as all sources of income minus the taxes paid on that income.

A higher saving rate generally suggests a greater capacity for future investment and a stronger financial buffer for households against unexpected events. Data for these rates are primarily collected and reported by national statistical agencies, such as the U.S. Bureau of Economic Analysis (BEA) and Statistics Canada, and by international organizations like Eurostat and the Organisation for Economic Co-operation and Development (OECD).

Saving Rates in Europe

In Europe, the household saving rate has shown some fluctuation but generally indicates a notable portion of income being saved. The household saving rate in the euro area stood at 15.2% in the first quarter of 2025, a slight increase from 15.1% in the previous quarter. For the broader European Union (EU), the saving rate was 14.6% in the first quarter of 2025, up from 14.4% in the fourth quarter of 2024. These figures represent the percentage of gross disposable income that households save. Recent data also indicated that the euro area’s household saving rate was 15.3% in the third quarter of 2024, slightly down from 15.6% in the second quarter of 2024.

This change occurred as consumption growth outpaced the increase in gross disposable income. In 2023, the household saving rate for the entire EU was 13.2%, while for the euro area it was 14.1%.

While these averages provide a regional overview, saving rates can vary significantly among European countries. For example, in 2022, the average saving rate for Swiss households was around 19%, which was notably above the EU average of approximately 6% at that time. Countries like France and Germany also typically exhibit rates above the EU average, whereas others like Italy and the United Kingdom have sometimes fallen below it.

Saving Rates in North America

North American countries also exhibit distinct personal saving rates, reflecting their economic landscapes and household financial decisions. In the United States, the personal saving rate was 4.50% in June 2025. This rate remained unchanged from May 2025 and was lower than the 4.80% recorded in June of the previous year. The U.S. Bureau of Economic Analysis (BEA) consistently tracks this rate, with recent monthly figures showing variations, such as 4.4% in November 2024 and 3.8% in December 2024.

The long-term average personal saving rate in the United States, dating back to 1959, has been approximately 8.39%. The rate can fluctuate based on economic conditions; for instance, it reached a high of 32.00% in April 2020, likely influenced by pandemic-related economic shifts.

In Canada, the household saving rate also provides insight into consumer behavior. The household saving rate in Canada decreased to 5.70% in the first quarter of 2025, down from 6.00% in the fourth quarter of 2024. Historically, the personal savings rate in Canada averaged 7.57% from 1961 until 2025. Similar to the U.S., Canada experienced a significant increase in its saving rate during the second quarter of 2020, reaching an all-time high of 26.50%.

Factors Influencing Saving Rates

Several economic and societal factors commonly influence personal saving rates across developed regions. Economic conditions play a significant role, with periods of high economic uncertainty often leading to an increase in saving as individuals become more cautious about future spending. Conversely, robust economic growth and high consumer confidence can encourage more spending and a reduced saving ratio.

The level of income also impacts saving behavior, as higher disposable incomes generally enable individuals to save more. Interest rates are another important determinant, as higher rates can make saving more attractive by offering a greater return on deposits. However, the relationship is not always straightforward, as other factors like economic pessimism can lead to increased saving even when interest rates are low.

Wealth revaluation, such as changes in the value of assets like real estate or stocks, can also affect saving rates; an increase in wealth may diminish the perceived need to save from current income. Demographic trends and social institutions also influence saving patterns. The age structure of a population is relevant, as people in their middle ages often save more for retirement, while older individuals may draw down their savings. Cultural attitudes towards saving versus spending can shape habits, with some cultures exhibiting a stronger propensity to save. Additionally, the presence and structure of social security systems and pension plans can influence individual saving decisions, as they provide a form of mandated or collective saving.