{"id":687188,"date":"2026-06-06T03:03:26","date_gmt":"2026-06-06T03:03:26","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/687188\/"},"modified":"2026-06-06T03:03:26","modified_gmt":"2026-06-06T03:03:26","slug":"americans-are-saving-less-and-defaulting-more-6-charts-tell-the-story","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/687188\/","title":{"rendered":"Americans are saving less and defaulting more: 6 charts tell the story"},"content":{"rendered":"

More and more Americans are defaulting on loans and digging into their savings, including their retirement accounts, to keep up with persistent inflation<\/a>. On Thursday, \u201cMorning Joe\u201d<\/a> economic analyst Steve Rattner broke out his charts to show the desperate measures some Americans are taking.<\/p>\n

\u201cSavings is obviously of critical importance to Americans,\u201d Rattner explained. \u201cIt\u2019s how you pay for future obligations: education, houses.\u201d <\/p>\n

The former Treasury Department official used data from the Bureau of Economic Analysis to talk about \u201cwhat\u2019s been happening to the savings rates of Americans as they face this affordability problem, the pressure of inflation on their ability to maintain their living standards.\u201d<\/p>\n

According to the data, Americans\u2019 personal savings rate \u2014 the after-tax income they put away for future expenses \u2014 has fallen dramatically over the past five decades, hitting what Rattner referred to as a \u201crock bottom.\u201d In the 1970s, the average personal savings rate was 12.2%. In 2026, that average is just 2.6%.<\/p>\n

He also examined changes in emergency savings. At the end of 2025, 21% of Americans said they had more emergency savings compared with the year prior, while 29% said they had less.<\/p>\n

In 2025, only 21% of Americans experienced growth in their emergency savings.
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That trend will likely get worse this year as inflation eats into disposable income.
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My @Morning_Joe<\/a> Chart. pic.twitter.com\/lKzDA6w9CB<\/a><\/p>\n

\u2014 Steven Rattner (@SteveRattner) June 4, 2026<\/a><\/p>\n

Rattner said Americans have been \u201ckind of tap-dancing\u201d to be \u201cable to maintain some semblance of their lifestyle.\u201d That includes taking desperate measures, such as dipping into retirement savings.<\/p>\n

\u201cThe percentage of Americans taking money out of their 401(k) has more than tripled since 2020 \u2014 still a relatively low number, but it\u2019s gone all the way from 1.7% to 6% as people have had to grapple with the effects of inflation,\u201d he said.<\/p>\n

401(k) hardship withdrawals are rare, but they spike when Americans\u2019 saving and income don\u2019t cover their expenses.
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Since 2020, Vanguard data shows they have more than tripled.
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My @Morning_Joe<\/a> Chart. pic.twitter.com\/bf8QVMitcv<\/a><\/p>\n

\u2014 Steven Rattner (@SteveRattner) June 4, 2026<\/a><\/p>\n

The \u201cMorning Joe\u201d economic analyst also pointed to mortgage delinquencies<\/a>, which have increased for all Americans, but especially those with the lowest incomes.<\/p>\n

\u201cThis shows very clearly that this kind of pressure that we\u2019re looking at on savings exists more heavily in the lower incomes, not surprisingly, than it does for those closer to the top,\u201d he said.<\/p>\n

\tRecommended<\/p>\n

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\n\t\t\t\t\"\"\t\t\t\t<\/a><\/p>\n

\n\t\t\t\t\t\t\t
\n\t\t\t\t\t\tAllison Detzel<\/a>\t\t<\/p>\n

\n\t\t\t\t\t\tAllison Detzel is an editor\/producer for MS NOW. She was previously a segment producer for \u201cAYMAN\u201d and \u201cThe Mehdi Hasan Show.\u201d\n\t\t<\/p>\n

\"MS<\/p>\n

\u00a9\u00a02026 Versant Media, LLC<\/p>\n

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