Savings Rate Halved
The US personal saving rate, which shows income left after taxes and expenses, has fallen below half its previous levels. It dropped to 2.6% in April, the lowest since June 2022.
Dipping into Retirement
More Americans are withdrawing from their retirement funds. Both new loans and hardship withdrawals from 401(k) accounts are on the rise, indicating immediate financial needs.
Why the Squeeze?
Rising costs for everyday items like consumer goods and gas are forcing households to spend more. This leaves less disposable income for savings and investments.
