Retirement

The average American saves less than 5%, so how are you doing?

The average American saves less than 5%, so how are you doing?

The average American saves less than 5% of his or her disposable income. Many financial advisors say that isn’t enough to ensure a comfortable retirement.

The personal saving rate, calculated by the federal Bureau of Economic Analysis, has hovered around 5% for the last few years. By the end of June, the rate had fallen to 3.8%, the bureau reported.

Carrie Houchins-Witt, a certified financial planner in Coralville, Iowa, encourages her clients to save 10% to 15% of their disposable income, putting the money in different accounts set aside for emergencies, retirement and other...

EDITION: California | U.S. & World
70°