About one-fifth of Americans don’t have any savings, according to a new survey.
The personal savings rate in the US has fallen since the 1980s, prior to which it routinely held in the double digits.
Savings have improved in recent years, but some Americans have said they would still have trouble paying for an unexpected $400 expense like a car repair.
About a fifth of Americans have no money tucked away for unexpected costs.
About 21% of working Americans said they aren’t saving any money at all, Bankrate found in a survey. Among those who are saving, a majority are putting away less than 10% of their income.
Over the past several decades, household savings in the US have been trending downward. By the Bureau of Labor Statistics’ measure, Americans were saving 7.6% of disposable income in December. Before the 1980s, that rate had mostly been in the double digits.
Widening inequality has been one potential reason the personal savings rate has remained low by historical standards and compared with other countries, said Brian Rose, the senior Americas economist at UBS Wealth Management.
“Among lower income households, they’re mostly living paycheck to paycheck and even struggling to do that,” he said. “So, they …read more
Source:: Businessinsider – Finance