Savings ratio down to pre-2008 crash levels

GreatApe

economic wrote: »

assuming the children dont spend any money? which is highly doubtful.

well the savings rate is still positive so the kids are not on average wasting it on fast cars hookers drugs and booze, instead they are adding to it and it looks like they will be passing bigger fortunes down to their <2 kids too.

All this points to real rates being zero or negative for a long time to try and reduce the savings rate towards zero

GreatApe

economic wrote: »

assuming the children dont spend any money? which is highly doubtful.

are you not a good example of this debate?

iirc you've said you are in your early 30s and gave up a high paid job after saving hard for a number of years and because you didn't need it anymore you chucked it in. Receiving an early inheritance probably didn't hurt either. so your saving rate plummeted and might even be negative now?

It is also tied to children, I assume you dont have any, if you did I would assume it would have been less likely you would have stopped working and given up a well paid job.

economic

GreatApe wrote: »

are you not a good example of this debate?

iirc you've said you are in your early 30s and gave up a high paid job after saving hard for a number of years and because you didn't need it anymore you chucked it in. Receiving an early inheritance probably didn't hurt either. so your saving rate plummeted and might even be negative now?

It is also tied to children, I assume you dont have any, if you did I would assume it would have been less likely you would have stopped working and given up a well paid job.

true on all points except i havent received inheritances, only gifts.

although i would say i am the exception. people think im a bit strange.

michaels

Does anyone know if pensions are included in the savings rate as effectively several percent of incomes are now being forced saved into pensions?

economic

michaels wrote: »

Does anyone know if pensions are included in the savings rate as effectively several percent of incomes are now being forced saved into pensions?

plus also those with mortgages are repaying their principal off which should also form part of savings.