Personal Savings Rate Hit Zero in June 2005

The personal savings rate (savings divided by after-tax income) of Americans in June 2005 was zero according to the PERSONAL INCOME AND OUTLAYS: JUNE 2005 report issued by the Bureau of Economic Analysis. In 1984 the rate was 10.8 percent (Newsweek August 22, 2005, page 38).

To enjoy a work-free retirement, American workers will need to increase their savings and investments.