Ever wonder how your saving habits stack up to those around you? Well, we have the latest American savings statistics for you to see how you’re doing!
How much are Americans saving?
Are we saving at all?
How can we save more?
1. 69% of Americans have less than $1000 in a savings account.
Financial expert Dave Ramsey recommends having $1000 in an emergency fund for when you need it. This $1000 is meant to be a minimum, and ideally you will build up this fund even greater over time.
2. 31% of Americans say they can’t save money because they live paycheck to paycheck.
This is a worrisome statistic! Our goal here at PennyProfit is to help you save money without having to change your existing habits. We take your spare change from purchases and automatically save it for you. This helps our customers feel secure knowing they always have a little nest egg growing.
3. 22% of Americans have less than $5000 in retirement savings.
Saving for retirement can be a daunting task. A commonly used benchmark for retirement savings is $1 million. A lot of Americans are not close to this goal whatsoever, with 22% having less than $5000 in their retirement fund. If your job offers a 401k match or other retirement options, be sure to take advantage of those benefits. Even though your paycheck will be smaller now, you will be grateful in the long run when you see the fruits of that sacrifice.
4. 46% of Americans expect to keep working after the age of 65.
Many Americans cite rising healthcare costs and decreasing social security benefits as the reasons they will keep working after the age of 65. A lack of retirement savings is also a common reason.
5. Only 6% of Americans have over $50,000 in their savings accounts.
On the opposite side of the spectrum, 45% of Americans have $0 in their savings accounts.
6. The bright side of the Covid-19 pandemic is that it greatly increased savings in April 2020.
An upwards trend in saving started February 2020. It peaked in April at 33% (traditionally around 7%). The reason for this spike is because Americans were staying home for the most part, curbing spending, and stockpiling cash.
7. Americans spend almost $15,000 a year from their saving accounts.
This statistic is especially worrisome because ideally savings accounts can be left alone for long term saving. The average amount Americans remove from their savings is $14,230. People cite paying bills, special purchases, and changes in salary as their most common reasons for pulling from savings.
8. 401K plans and regular savings accounts are the most common retirement fund sources.
The average 401k balance in the US is $106,000. Americans also commonly use IRA and CD accounts to save for retirement.
9. About 8% of Americans could survive no more than 1 month living from their emergency fund.
This statistic is very sobering. Nearly 8% of Americans would be unable to be financially able to weather a loss of income for one months’ time. Only 9% and 13% said that their emergency fund would last them 7-12 months or over a year.
10. Americans could save about $6,000 a year.
After theses startling statistics, let’s end on a more positive note. An analysis by the De Moines Register analyzed the average income vs spending in America. The study showed the average income after taxes was $67,241, while the average expenditure was about $61,224. According to this study, Americans could be saving about $6,000 a year, or about $500 in average monthly savings.
What were your thoughts reading over these statistics?
Can you relate with some of the more troubling ones?
Did they scare you?
Motivate you to up your savings game?
Any thoughts we’d love to know in those comments down below! You can also contact us here to let us know how savings have changed your life for the better. And don’t forget to get started saving today with PennyProfit!