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.
Most of them have been able to keep their saving rate
steady in 2013.
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.