Key Takeaways
- Close to half of U.S. consumers recently reported that their ability to save was lower this year than last year.
- Though the average dollar amount Americans were able to save this year rose, the spending power of this year's savings is lower than in 2022 due to stubborn inflation.
- Almost eight in 10 consumers said they had experienced an expenditure that used up 67% of their savings on average, with the savings-depleting even occurring four years ago on average.
- The top three reasons for having to use significant savings were emergency expenses, a major life event, and a job loss or income reduction.
- Whatever your savings balance, it's easy to earn a top rate by shopping our daily ranking of the best high-yield savings accounts.
Today’s elevated inflation levels are not only impacting Americans’ spending habits, but their capacity to save as well. Newly released survey findings show that close to half of U.S. households report their savings ability has diminished from last year. Meanwhile, almost eight in 10 recall having at least one expenditure that required them to withdraw a significant portion of their savings.
The data findings come from a study by PYMNTS Intelligence and LendingClub, which surveyed more than 3,600 U.S. consumers in the first half of September. The study found that 44% of respondents said their ability to save has decreased over the past year, while only about a quarter (24%) felt they had been able to bump up their savings.
Share of Consumers Citing How Their Savings Ability Has Changed in the Last Year
In absolute dollars, consumers’ average savings rose from $11,085 in Sept. 2022 to $11,213 this September. But once the figures are adjusted for inflation, the spending power of that savings declined from $10,054 last year to just $9,838 in 2023.
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Average American Depletes a Large Chunk of Savings Every 4 Years
The study also found that 78% of respondents recall at least one major expenditure that caused them to withdraw a significant portion of their savings. There was of course some variance across age segments, with baby boomers having the lowest incidence of savings depletion, at 72% of respondents, while 83% of bridge millennials (those who span from older millennials to younger Generation X) reported a savings-depleting event.
Share of Consumers Who Had a Major Expenditure That Required Spending a Significant Percentage of Their Savings
The average consumer was found to use two-thirds of their savings (67%) for these savings-depleting expenditures, and that the occurrence on average was once every four years. For the average young Generation Z respondent, however, their reported frequency was closer to two years.
Average Number of Years Since the Last Time Consumers’ Savings Were Significantly Reduced
Emergencies Were the Top Reason for Digging Deep into Savings
When asked about the type of event that caused them to have to spend so much of their savings, the top response was an emergency expenditure, accounting for nearly a third of respondents (31%). Other top responses included a major life event (24%) and a job loss or income reduction (20%).
Top Reasons Cited for Significantly Reducing Savings
PYMNTS Intelligence and LendingClub published "Reality Check: Paycheck-To-Paycheck", the Savings Deep Dive Edition, on Oct. 30.
