Category: savings

Is $1 Million Enough for Retirement in America?


This post is by Carmen Ang from Visual Capitalist


Retirement Savings in America

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Is $1 Million Enough for Retirement in America?

The average American needs their retirement savings to last them 14 to 17 years. With this in mind, is $1 million in savings enough for the average retiree?

Ultimately, it depends on where you live, since the average cost of living varies across the country. This graphic, using data compiled by GOBankingRates.com shows how many years $1 million in retirement savings lasts in the top 50 most populated U.S. cities.

How Long $1 Million Would Last in 50 Cities

To compile this data, GOBankingRates calculated the average expenditures of people aged 65 or older in each city, using data from the Bureau of Labor Statistics and cost-of-living indices from Sperling’s Best Places.

That figure was then reduced to account for average Social Security income. Then, GOBankingRates divided the one million by each city’s final figure to calculate how many years $1 million would last in each place.

Perhaps unsurprisingly, San Francisco, California came in as the most expensive city on the list. $1 million in retirement savings lasts (Read more...)

One Year In: Did People Save More or Less During the Pandemic?


This post is by Avery Koop from Visual Capitalist


pandemic saving rates

The Briefing

  • Increased saving rates were a common trend across many countries during the global pandemic.
  • At its highest point the U.S. had a personal savings rate of 33%.

One Year In: A Look at Saving Rates During the Pandemic

While working hours were reduced across the globe and many lost their jobs entirely, personal saving rates actually increased throughout the pandemic in many countries.

A personal saving rate is calculated as the ratio of personal saving to disposable personal income. Here’s a look at the U.S.’ personal saving rate over 2020.

DateU.S. Savings Rate
January 20207.6%
February 20208.3%
March 202012.9%
April 202033.7%
May 202024.7%
June 202019.0%
July 202018.4%
August 202014.6%
September 202014.1%
October 202013.2%
November 202012.5%
December 202013.4%
January 202120.5%

The U.S.’ personal saving rate skyrocketed in April to more than 30%. After a dip near the end of 2020, the rate has jumped back up again to around 20% in January 2021.

With the most recent data from September 2020, many European countries’ savings rates were up, as well—the highest rate occurred in the Netherlands at 24%. Japan and the UK followed a similar trend as well, at 22% and 28% respectively.

The Pandemic Piggy Bank

Personal saving rates tend to increase during recessions and, more generally, either increase because of reduced consumption or a boost in income.

Without the same access to restaurants, shopping, and travel, it is somewhat unsurprising that (Read more...)