Personal Savings Indicators Steady over Last Year, Says America Saves
However, indicators for Americans earning over $100,000 per year have declined
According to new survey data from America Saves, the interest, effort, and effectiveness of Americans to save money has remained steady over the last year.
The America Saves Personal Savings Index measured American's savings interest at 65 percent, savings effort at 57 percent, and savings effectiveness at 56 percent in May 2016. All were within two percentage points of the January 2016 and May 2015 indicators.
The Personal Savings Index is measured three times a year. Each metric saw its peak in September 2015, with 75 percent interest, 65 percent effort, and 62 percent savings effectiveness.
The outlier in the most recent data applies to Americans earning $100,000 per year. Despite being the most effective savers, savings indicators among the highest earners declined from May 2015 to May 2016. Personal savings interest is down 3 percentage points, savings effort is down 6 percentage points, and savings effectiveness is down 5 percentage points.
"It surprised us that, unlike all other households, high-income households evidenced less interest, effort, and effectiveness than they did a year ago," said Stephen Brobeck, in a written statement. Brobeck is the Executive Director of the Consumer Federation of America (CFA) and a founder of America Saves." I can only speculate that most of them know they are well-off but were a little shaken by the decline in stock prices early this year," he added.
Despite the decline in over the last year in savings indicators among the wealthiest, low-income Americans remain significantly far behind. Compared to the highest earners, those making under $25,000 are less interested in saving by 18 percentage points, make less of an effort to save by 24 percentage points, and are less effective at saving by 25 percentage points.
The most recent data was collected by ORC International between May 12 and May 15, which surveyed a representational sample of over 1,000 adult Americans. The survey's margin of error is plus or minus three percentage points.