Don't Blame Demographics for America's Low Saving Rate

Natixis Investment Managers argues that recent concerns about the U.S. personal saving rate are being overstated, with demographic explanations masking more important cyclical drivers of consumer spending.

• The report disputes the popular narrative that retiring Baby Boomers explain the decline in the saving rate, arguing retirees continue to earn income through pensions, dividends and transfer payments while also reducing their spending.
• Natixis notes that personal saving rate data is frequently revised higher as more complete income information becomes available, suggesting current readings may exaggerate financial stress.
• Instead, the firm argues that slowing wage growth, elevated borrowing costs and persistent inflation are becoming the more important constraints on future consumption.

Read the full macro commentary for a data-driven perspective on demographics, consumer resilience and the outlook for the U.S. economy.