Jump to content

Poll - Your savings rate


shalab
[[Template core/global/global/poll is throwing an error. This theme may be out of date. Run the support tool in the AdminCP to restore the default theme.]]

Recommended Posts

It has been said that the savings rate of the US public as a whole has been negative and has recently changed to +6%. In this poll, let us figure out how much of our income we save and see how we compare to the Japanese/Chinese people.

 

e.g: if one earns $50,000 a year in the U.S, 7.4% will go to FICA, another percentage will go to state and federal income taxes and some for living expenditures and remaining will be saved. So, if one is able to save 5,000 dollars after all expenses, the savings rate is 10%. This includes contributions to retirement accounts 401(k), IRA etc. but doesnt include employer matching to the 401(k), IRA.

Link to comment
Share on other sites

I think when comparing world wide savings rates one has to consider the safety nets and entitlements offered in a country. I believe that if you need medical attention in China you must pay cash for it. That would cause anyone to save a huge percentage of their income.

 

Same thing if you get laid off. I dont think this is a good thing, and I believe it gums up the economy. Ideally you want consumers spending most of their income and saving probably 5% - 10% for a rainy day.

 

I think after tax is the best way to look at these sort of things.

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
×
×
  • Create New...