Personal savings rate in the US - Data and Analysis (1980-2032)

In 2026, the personal savings rate in the United States is forecast to decrease, falling -1.3 percentage points to reach an estimated 3.3%. An oil price shock tied to the conflict with Iran has lifted gasoline and energy bills, while reaccelerating inflation has outpaced wage gains and squeezed real disposable income. Tariffs have also kept prices elevated for many imported goods. Larger tax refunds from the One Big Beautiful Bill Act boosted household cash flow early in the year, but many consumers used the windfall to cover higher living costs rather than save it. The rate edged higher in July as income growth outpaced spending, though the Federal Reserve's rate hike in September will raise borrowing costs for households already leaning on credit.The personal savings rate has declined sharply over the five years through 2026, falling from elevated pandemic-era levels. Stimulus payments, enhanced unemployment benefits and restrictions on in-person activities pushed the rate to a record high in 2020, and it remained well above normal in 2021 as further relief payments reached households.Savings plunged in 2022 as the economy fully reopened and fiscal support expired. Inflation surged to a four-decade high, forcing households to spend more on essentials and draw down the excess savings built up during the pandemic. The Federal Reserve responded with aggressive interest rate hikes through 2023. Higher deposit rates made saving more attractive and the rate recovered somewhat in 2023 as inflation cooled and wage growth picked up. The savings rate held relatively steady in 2024, supported by a strong labor market, before the Federal Reserve began cutting rates late in the year.Pressure on household budgets returned from 2025. Sweeping tariffs lifted prices for consumer goods, while housing, insurance and childcare costs continued to climb. Rising stock and home values created a wealth effect that encouraged higher-income households to spend a greater share of their income. Meanwhile, lower-income households increasingly turned to credit cards and buy now, pay later services to cover expenses, contributing to rising delinquencies on consumer debt.