Personal, Private, and Government Saving Rates
Longer life spans and earlier expected retirement imply that Americans will spend a larger fraction of their lifetime without income-producing work. As a result, more resources will be needed to maintain their living standards during retirement. Thus, either people must save more during the working stage of life or more resources must be transferred from workers to retirees through Social Security. The need to increase transfers will intensify as baby boomers age and retirees’ share of the population rises.
Suggested citation: "Personal, Private, and Government Saving Rates," Federal Reserve Bank of Cleveland, Economic Trends, no. 00-06, pp. 14, 06.01.2000.