This chart shows the average annual U.S. savings rate (including employer and employee contributions to retirement accounts) since 1960. In general, Americans save more during recessions and spend more during economic expansions. This is often referred to as the “Wealth Effect.” The long-term average of almost 8% is well below the recommended retirement savings rate of 10% to 15%. 2020 and 2021 saw record savings of 15% and 11% respectively due to several factors associated with the Global Pandemic (e.g., fiscal stimulus, stay at home orders, etc.). It is important to note that this savings rate is not evenly distributed – higher income households tend to save much more than lower income households.