The U.S. personal saving rate averaged 4.6% in 2025 and was 3.0% in July 2026 (Bureau of Economic Analysis). That headline number hides wide variation by income: in 2024 BLS data, the highest-income fifth of households spent 57% of its average pre-tax income, while the lowest-income fifth spent about twice its reported income, drawing on savings, credit, or family support. This article covers what Americans actually save by income level. For targets on what you should save, see how much should I save each month.
Here is how the numbers actually break down.
Average Savings Rate by Income Quintile
Based on Federal Reserve Survey of Consumer Finances and BLS Consumer Expenditure Survey data:
| Income Quintile | Approx. Income Range | Average Savings Rate | Median Savings Rate |
|---|---|---|---|
| Bottom 20% | Under $30,000 | −2.3% | −6.1% |
| Second 20% | $30,000–$52,000 | 1.8% | 0.4% |
| Middle 20% | $52,000–$82,000 | 6.4% | 4.8% |
| Fourth 20% | $82,000–$130,000 | 11.2% | 9.6% |
| Top 20% | Over $130,000 | 24.7% | 19.3% |
| Top 5% | Over $290,000 | 38.2% | 32.1% |
A negative savings rate means the group as a whole is spending more than after-tax income — financing consumption through borrowing or drawing down existing assets.
Savings Rate by Specific Income Level
More granular view, estimated from SCF and BLS CEX data:
| Annual Income | Avg. Monthly Income (after tax) | Avg. Monthly Spending | Avg. Monthly Saved | Savings Rate |
|---|---|---|---|---|
| $35,000 | $2,620 | $2,600 | $20 | 0.8% |
| $50,000 | $3,610 | $3,440 | $170 | 4.7% |
| $60,000 | $4,260 | $3,920 | $340 | 8.0% |
| $75,000 | $5,180 | $4,680 | $500 | 9.7% |
| $100,000 | $6,720 | $5,840 | $880 | 13.1% |
| $125,000 | $8,100 | $6,700 | $1,400 | 17.3% |
| $150,000 | $9,460 | $7,420 | $2,040 | 21.6% |
After-tax income estimated using standard 2026 tax rates and FICA. Spending from BLS CEX 2023 data.
The Gap Between What People Save and What They Need
The recommended savings rate to retire comfortably at 65 on roughly 70–80% of pre-retirement income:
| Current Age | Income | Recommended Total Savings Rate | Typical Actual Rate | Shortfall |
|---|---|---|---|---|
| 30 | $60,000 | 15% ($9,000/yr) | 6–8% | 7–9% |
| 35 | $80,000 | 15% ($12,000/yr) | 9–11% | 4–6% |
| 40 | $90,000 | 18% ($16,200/yr) | 10–12% | 6–8% |
| 45 | $100,000 | 22% ($22,000/yr) | 12–14% | 8–10% |
The gap represents money not being saved that, if invested, could grow substantially before retirement. A 40-year-old saving 10% instead of 18% on a $90,000 income is leaving $7,200/year out of their retirement account. At 7% over 25 years, that $7,200/year difference compounds to $473,000.
Where Does the Money Go? Average Household Spending
Understanding why savings rates are low requires looking at where income actually goes. BLS Consumer Expenditure Survey 2023, household earning $75,000:
| Category | Annual Spending | % of Pre-Tax Income |
|---|---|---|
| Housing (rent/mortgage, utilities, insurance) | $22,400 | 29.9% |
| Transportation (vehicle, gas, insurance, transit) | $12,100 | 16.1% |
| Food (at home + dining out) | $9,800 | 13.1% |
| Healthcare | $5,700 | 7.6% |
| Personal insurance & pensions | $6,800 | 9.1% |
| All other (clothing, entertainment, misc.) | $9,200 | 12.3% |
| Total spending | $66,000 | 88.0% |
| Available for saving | $9,000 | 12.0% |
For a $75,000 household, the math roughly works — but only if discretionary spending is tightly controlled. Many households let the “all other” category expand, pushing savings toward zero.
The Three Levers That Move Savings Rate
1. Housing cost
Housing is typically the largest spending category and the hardest to reduce short-term. Every 1% of income moved out of housing into savings is meaningful. Going from 35% of income on housing to 30% adds 5 percentage points to your savings rate.
2. Vehicle costs
Americans earning $50,000–$100,000 typically spend 15–18% of income on transportation. Driving a reliable used car vs. financing a new car can free $300–$500/month — enough to meaningfully move the savings rate.
3. Income growth without lifestyle inflation
The data shows clearly that savings rates rise dramatically with income — but only when lifestyle inflation is controlled. Someone who earns $50,000 and lives on $45,000 who then earns $75,000 and lives on $55,000 has moved their savings from $5,000/year to $20,000/year — a 4x increase in actual savings from a 50% raise, by capturing most of the increase.
What a 1% Savings Rate Increase Actually Means
For someone earning $75,000, each 1% increase in savings rate = $750/year more saved. Invested at a 7% average annual return for 30 years, each 1% of savings rate adds about $71,000 in retirement wealth.
Raising your rate from 5% to 15% on a $75,000 income saves $7,500 more a year, or about $710,000 more at retirement after 30 years at 7%. This is the compounding case for prioritizing savings rate over investment returns.
Where the US Savings Rate Has Been
Context matters. The US personal savings rate has been:
- May 1975: 17.3% (the highest month before 2020)
- 2019 average: 7.3% (pre-pandemic)
- April 2020: 31.8% (the all-time high: stimulus payments while spending collapsed)
- 2022 average: 3.4% (post-pandemic drawdown)
- 2025 average: 4.6%
- July 2026: 3.0%
Source: Bureau of Economic Analysis via FRED (series PSAVERT), current vintage.
The long-term decline reflects structural changes: stagnant real wages for median earners, rising housing costs, and the shift from defined-benefit pensions (which forced saving) to defined-contribution plans (which require discipline).
For targets on what you should save at each income level — rather than what Americans average — see how much should I save each month.
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