Saving money is important for a lot of reasons. For example, it can help you in case of an emergency, it can help you reach your financial goals, and it can provide you with a safety net if you lose your job or encounter other unexpected expenses.
It is always a good idea to save money for the future. And yet, recent saving money statistics and savings figures reveal that Americans are far from adhering to that principle. The average US family has about $40,000 in savings, which isn’t enough to retire by 65. Then there are 14% of people who have no retirement funds at all.
- How much money could American adults save every month?
- What state has the highest average retirement savings?
- How has the COVID-19 epidemic impacted savings?
These are all important questions, and, as usual, we have answers.
Continue reading to discover more about saving money statistics globally and in the United States and how it compares to other countries’ economies.
Key Statistics About Money Savings
- According to a survey by Bankrate.com, only 41% of Americans have enough savings to cover a $1000 emergency.
- A study by the Federal Reserve found that 4 in 10 adults could not cover an unexpected $400 expense.
- The average employee can save an impressive $4K per annum by working from home – the equivalent of two mortgage payments or something even more important to their life.
- According to a survey by GOBankingRates, 57% of Americans have less than $1000 in savings
- The top 1% of American families have about $2.5 million in assets.
- The typical American family has around $14,700 in savings.
- In April 2020, the savings rate in the United States climbed to 30 percent.
- According to a recent Money magazine poll, approximately half of Americans (49 percent) believe they will live longer than their savings.
While these statistics may be disheartening, they also highlight the importance of saving money. If you don’t have enough savings to cover an unexpected expense, it can put you in a difficult situation.
This is why it’s important to make saving money a PRIORITY.
Global Saving Money Statistics
Saving money has become increasingly difficult for many people around the world.
The global financial crisis of 2008 led to a decrease in household savings rates in developed countries. In the United States, the household savings rate peaked at 8.3% in May of 2008 and then fell to a low of 2.4% in September of 2014.
1. In China, households save much more money than they do in other nations.
Between 2000 and 2016, China’s savings rate was consistently above 25 percent. The lowest recorded rate was 27.21 percent in 2002, while the highest was 38.99 percent in 2010. According to the OECD chart, China’s household savings rate stood at 36.14% in 2016.
- Macau, on the other hand, outscored the mainland by 64.3 percentage points in 2021.
- In the euro zone, the savings rate fell to 5.65 percent in 2018, from a peak of 8.14 percent in 2003.
- Australia and the United Kingdom were far worse with 3.03% and 0%.
- Saving money statistics reveal that Canada’s family savings rate was also low at 2.27% in 2019.
2. Sweden had the highest household savings rate among EU countries.
In 2020, the proportion of Swedish households’ family savings was 17.6 percent, greater than any other EU country’s rate. Germany had a rate of 16.2%, followed by Italy with 10.3%.
3. Nearly half of UK residents have less than £100 in their savings accounts.
UK residents have an average of £2,041 saved, but 42 percent have less than £100. This number has increased since 2018, when only 38 percent had this low amount of savings.
- According to a recent study, over half of British Adults have less than £100 in the bank.
- According to savings statistics, 44% of Brits do not have more than £100 saved at any one time.
- In Northern Ireland, 56.8 percent fell into this category, whereas in the West Midlands it was 55.2%. Around 42.3 percent of people living in London had less than $100 in their savings account.
American Money Savings Statistics
The American money savings statistics are not great, yet they rank seventh in the world for household savings, with a rate of 13.1%. This is a decrease from the previous year when the United States ranked fourth, with a savings rate of 15.5%. Although the United States has seen a decrease in its ranking, the country still has one of the highest rates of saving money in the world.
4. The top 1% of American households have average savings of almost $2.7 million.
When the spotlight shifts to the bottom 20% of American families by income, things become considerably more complex.
- The typical savings here is merely a little over $24,000. It’s clear that those who earn the most money manage to save the most money.
- Even the gap between the top 1% and 10% of earners is significant, according to statistics on US savings.
- To put it another way, the top 10% of American households that earn the most keep less than a million dollars in savings on average.
5. In 2020, the United States’ private savings total was more than $6 trillion.
According to the Federal Reserve, Americans typically spend more money than they have. They also save money, albeit to a lesser degree.
- Since the 1960s, the gross private savings in the United States have been on an increasing trend.
- For the first time, this sector surpassed $1 trillion in 1990, when it reached $1.14 trillion.
- In 2003, the $2-trillion mark was reached, and in 2009, Americans’ savings totals rose to $3.38 trillion.
- According to the United States’ saving money statistics, the total value of savings increased from $4 trillion in 2017 to over $4.72 trillion in 2019.
6. The majority of Americans have less than $50,000 in their savings account. A paltry 6% of the population has that kind of money in their accounts.
We can also examine the opposite side of the spectrum, which is made up of those people who had no assets at all in 2019.
- These individuals had nothing in their savings account in 2019, while another 24% had less than $1,000.
- Around 12% said they had between $1,000 and 4,999 dollars.
- That means that 81% of the respondents had less than $5,000 in savings at the time of the survey.
- The 5%, 5%, and 4 percent accrued savings accounts with respective amounts of $5K-9999; 10K-19999; and 20K-49,999.
7. In April 2020, the household saving rate increased dramatically.
In the US, personal saving rates fell in the previous two years.
- However, in 2020, things changed dramatically, and the rate shot up more than 30%.
- The upward trend began in February 2020, when the household savings rate rose above 8%. It reached 10% in April 2020 when it peaked at 12.7 percent.
- The US personal savings rate reached an all-time high of 33% in May 2020, up 20.3 points from April, according to the Federal Reserve Bank of St. Louis.
The COVID-19 epidemic, which made Americans limit spending and accumulate cash, was the cause behind this rise.
8. Americans have withdrawn $1,000 on average because of COVID-19.
While facts suggest that the pandemic had a positive influence on some Americans, others were forced to deplete their emergency funds due to financial hardship.
- The median amount withdrawn from savings was $1,000 as of September 2020, with the mean withdrawal amount standing at $3,138.79.
- However, compared to those who took out less than $3,138.79 combined, this suggests that more people withdrew more than $3,138.79 money out.
9. Retirement funds are the most prevalent type of savings in American accounts.
According to statistics from the US Saving Account Council, 50.5% of American households have retirement accounts with an average balance of $255,200. 7.7 percent of households keep certificates of deposits, which is the other kind of savings account with a significant proportion.
10. 529 plans have amassed a total assets value of more than $373 billion by 2020.
Americans have about $347.6 billion in 529 plans, according to data on saving money.
- As of June 2020, Americans had $347.6 billion in 529 savings plans.
- Such savings increased in popularity in 2019, climbing from $288 billion in 2018.
- In 2013, the overall value of the 529 savings plans increased by another significant margin.
- From 2011, the total amount rose from $145 billion to $203 billion during that year (in US dollars).
For those who are unfamiliar with this college savings plan, it offers tax benefits as well as financial aid incentives. It’s mostly used for educational expenses, but you may also use it for other goods. The second choice comes with a federal income tax and a 10% penalty on any profits.
11. The most prevalent incentive for American families to save is liquidity.
This is one of the more interesting facts about saving money in the United States.
- In 2010, 2013, and 2016, liquidity was the most frequent cause for Americans to save money.
- The following were some of the most popular reasons for saving: retirement (30.3%), purchases (12.1%), education (7.2%), and family finances (6.9%).
- Around 0.6% stated that they had no particular goal in mind when it came to savings, while 0.8% said they didn’t save at all.
12. 401(k) plans and standard savings accounts are the most popular kinds of retirement savings.
According to the Spectrem FSB 500 Index, more than half (56.1%) of Americans prepare for retirement through their 401(k) plan.
The average 401k balance in the United States is about $106,000.
In 2020, a regular savings account was also popular, with 55% of participants having one. Traditional IRAs (20%), Roth IRAs (19%), and Certificate of Deposits (19%) are other typical forms of retirement savings among Americans, according to American savings facts.
13. About 8% of Americans could live for only a month with their emergency fund.
Despite the fact that US household saving rates have increased dramatically, the majority of Americans could not survive more than six months without their emergency fund.
- Around 8% couldn’t last more than a month, while 14% could endure up to two months.
- These savings statistics are concerning, as they indicate that many people were unable to cope with a significant financial catastrophe.
- Only 9% and 13 percent said their emergency account would last seven to twelve months or longer.
14. In the United States, the typical household savings balance is nearly $42,000.
According to a report from Bankrate, the average household in the United States has $41,700 in savings, while the median is significantly lower at $5,300.
- Those with the best education predictably have the greatest household savings on average. As a result, Americans with a bachelor’s degree have roughly $79,100 in side-saving money on average.
- According to the US savings statistics, those with an associate’s degree in the United States have average household savings of $23,500.
- Those with a high school diploma and those without have average account balances of $20,100 and $9,100, respectively.
15. The average savings rate among Americans under the age of 35 is the lowest.
The median savings at age 35 is $3,200, which is far lower than the typical household savings.
- Those aged 35 to 44 have an average savings balance of $4,700; those aged 45 to 54 have around $6,300 in cash set aside.
- According to statistics on saving money, the average savings improve as the age range grows.
- According to data from the Federal Reserve, 64 percent of Americans aged 65-74 have a financial cushion.
- As can be seen in the graph on average savings by age group, individuals over 75 have the most money in their bank accounts, about $9,300.
16. White men carry the highest average savings balance compared to other Americans.
- The median savings for males and females in the United States is $7,000 each. Let’s take a look at average American savings balances by race.
- White people have reserves of approximately $7,140, whereas African Americans have just $1,000 in deposits.
- Hispanics are in between with an average savings account balance of $1,500.
As a result of these statistics, we may infer that white and male Americans have the greatest cash reserves.
17. 70% of Americans don’t have a long-term savings plan.
According to the National Center for Education Statistics, only 30% of Americans have a long-term savings and financial planning strategy.
- Only 30% of US adults have a long-term savings and financial plan.
- A household budget is essential for achieving savings goals.
- Even so, only 32 percent of households in the United States maintain a budget. On average, Americans spend less than 4.5 hours each year focusing on their money.
- That is why we have so many frightening savings account facts.
For example, just 39% of American adults could deal with a $1,000 emergency. A bigger percentage (44%) couldn’t even manage a $400 crisis.
18. Over 14% of Americans have no retirement savings.
For 13.7% of people in the United States, $0 for retirement is a frightening prospect. Adults with less than $10,000 in their retirement fund make up 28.6% of the population.
- Over 27% of Americans are likely to see their retirement disappear without any savings.
- It’s worth noting that 80% of Millennials have saved money for retirement.
- This is one of the surprising facts about saving money, especially among older generations.
- Despite this, Millennials are less likely to have retirement savings than Generation Xers.
- Almost two-thirds of Generation X people have more than $10,000 in retirement assets, with 40% having more than $100,000.
19. Many Baby Boomers are unprepared for retirement and have no money put aside.
- Every year, around 10,000 Baby Boomers become eligible to retire.
- According to savings statistics, 17% of them have less than $5,000 set aside for retirement, while 20% have less than $5,000 in personal savings.
- Some of them fall into the 15 percent of Americans who don’t have any retirement funds at all.
- The prospects for Generation Xers are even worse: nearly 21% of them lack a retirement fund.
20. After retirement, half of Americans believe they will outlive their savings.
Do you want another one of the spooky savings facts?
- Around 45% of grown-ups in the United States fear their money will not last long enough.
- 41% of them acknowledged that they had done nothing to address this potential concern.
- About 22% of respondents don’t believe Social Security will be accessible when they retire.
- Rather of saving more, 46% of non-retired US citizens plan to work after they reach age 65.
- The majority (53%) of those who anticipate working past 65 say they will do so by choice rather than necessity.
When it came to the main reason why people would not be able to work, 47% stated that they did not have enough money saved up.
21. The COVID-19 epidemic boosted US savings by 30%.
During the epidemic, Americans spent the most on take-out, packaged food, and savings, according to recent American saving money statistics from April 2020.
In contrast, travel, public transportation, and out-of-home entertainment were among the biggest losers during the pandemic.
22. Americans could save about $6,000 a year.
According to a study by The De Moines Register, the average income and spending in the United States were compared.
- After taxes, the average annual income was $67,241, according to the data.
- As a result of this information, it may be inferred that Americans may set aside around $6,000 per year or about $500 every month (after taxes).
23. The average retirement savings in Connecticut is the highest in the United States.
- Connecticut has the best average retirement savings at $523,568, according to our retirement data.
- Residents of New Hampshire have the greatest average savings, with $494,562.
- In third place is New Jersey with retirement funds totaling $489,664.
- Utah ranks last in terms of average retirement savings, followed by North Dakota and DC with totals of $300,392 and $310,766 respectively.
How to Achieve a Financial Balance Between Spending and Saving
According to these eye-opening savings rates, Americans have yet to establish their spending and saving equilibrium.
- With 30% of US residents having more credit card debt than financial assets, many will be unprepared for retirement.
Nonetheless, with statistics showing that American homes may save money, maybe some better planning is all it takes to put something away for a rainy day.
Debt Statistics and Facts
Limiting beliefs about money
Saving money has become increasingly difficult for many people around the world. The global financial crisis of 2008 led to a decrease in household savings rates in developed countries. In the United States, the household savings rate peaked at 8.3% in May 2008 and then fell to a low of 2.4% in September 2014.
Saving money is important, but it can be difficult to do. These statistics show that Americans have a long way to go in terms of saving for retirement. However, with some careful planning, it is possible to save money and enjoy a comfortable retirement.
Statistics for this article on saving money statistics were collected from the following sources:
Des Moines Register