savings

Savings ratio UK

Definition of Household savings ratio: The percentage of disposable income that is saved. (1) Total savings = Disposable income – Household consumption UK Saving Ratio Latest UK household savings ratio: Q2 2014 = 6.7 UK Saving ratio source: National income accounts Q4 ONS Note: stats were revised upwards in a recent update. (more…)

The Paradox of Saving

The Paradox of Saving

Looking at graphs for the saving ratio, I noticed a paradox. When people felt it was a good time to save more, they actually saved less. When people felt it was a bad time to save, they actually save more. Is it a Good Time to Save? As part of the GFK consumer confidence survey. They ask a question – In view of the current economic situation – Is it a good time to save?

Can we save our way out of the Pension Crisis?

Can we save our way out of the Pension Crisis?

Readers Question. We hear much about the “pensions time bomb”, as people tend to live longer and there is a bulge as “baby boomers” reach retirement age. We also hear much about the need to save for retirement. Saving *money* may mean people have more money in retirement but surely the real problem is to ensure there is more output; money is worth only what it can buy. Is there a risk that money saving will simply simply reduce current output and so reduce the income and incentives needed…

Japan Savings Ratio

Japan Savings Ratio

Japan has traditionally had a high savings ratio, but, in past decade the savings ratio has fallen to be close to European / US levels. Graph showing Japan Savings Rates Japan’s economy chasing illusions Since 1998, though Japanese saving rates have declined. The graph is a bit hard to read, but, since 2004, Japanese saving rates have been at 2.5- 3.0% Currently saving rates in Japan are just…