Household saving is the primary domestic source of funds to finance capital investment, which is a major stimulus for long-term economic growth. As the chart indicates, household saving rates vary a great deal between countries. This is partly due to the extent to which old-age pensions are funded by government rather than through personal saving and the extent to which governments provide insurance against sickness and unemployment. The age composition of the population is also relevant because the elderly tend to deplete financial assets acquired during their working years, so that a country with a high share of retired persons will usually have a low savings rate.

Over the period covered in the table, saving rates have been stable or rising in France, Austria, Italy, Norway and Portugal but have been falling in the United States, Canada, Japan and Australia. The saving rate in the United States is particularly troubling when the amount of Social Security and Medicare payments are taken into account. That is, without these payments, seniors would use up their savings at a faster rate leaving the U.S. saving rate even lower—possibly even negative—than it is at this time (0.5%).