Savings rate

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Savings rate

Personal savings as a percentage of disposable personal income.

Savings Rate

The amount a person or organization places in a savings account or similar vehicle as a percentage of total disposable income. Savings are important for long term financial stability as it gives a person or organization a cushion for bad times. The savings rate may be calculated at microeconomic level for personal finances or may be aggregated at the national level to gauge financial health. A low or negative savings rate usually indicates excessive borrowing, spending, or both. On the other hand, a high savings rate may result in slower economic growth as persons and companies are saving instead of purchasing goods and services. See also: Rainy day fund.
References in periodicals archive ?
When the probability that the parent cannot survive to the second period of life is sufficiently high, the accidental model involves a lower saving rate and bequest ratio than the altruistic model.
As figure 1 shows, the personal saving rate has moved irregularly downward since 1980, and by 1998 it was close to zero.
The only way we will be able to finance retirement incomes that keep pace with workers' incomes is to substantially increase the national saving rate, increase the borrowing of foreign capital, or increase the output that a given capital stock, financed through this saving, can produce.
The combination of incomes and spending meant that Americans' saving rate - savings as a percentage of disposable income - was 5.
The national saving rate has averaged less than 2 percent of GDP so far in the 1990s, down from 4 percent in the 1980s and about 8 percent in previous decades.
The saving rate is a key performance indicator for development policy.
According to the World Development Report, the gross domestic saving rate for 1987 was 26 per cent for the low income economics as a whole with 38 per cent for China and 22 per cent for India.
The personal saving rate, which measures the amount Americans save out of their disposable incomes, rose to 2.
The drop in the saving rate indicates the gain in spending "is not fully sustainable," said Pierpont's Stanley.
Due to a long slide in the personal saving rate from 1983 to 2005 and a subsequent rise, interest has intensified in how personal saving is measured and how it relates to broader concepts of national saving.
This is possible only because households are lowering their saving rate--the saving rate dropped from 5.