On net, the U.S. is saving just 2.2 percent of our national income. By contrast, the nation’s saving rate was 7.6 percent in the 1980s, 10.3 percent in the 1970s, and 13.0 percent in the 1960s.
The main reason: government policies that take an ever-larger share of resources from young and give them to the old.
Unless baby boomers change their saving habits substantially and relatively quickly, they may experience much higher rates of poverty in their old age than what the current elderly are experiencing. More