The personal savings rate in the United States fell to 2.6% in April 2026, according to data from the Bureau of Economic Analysis. This marks a decrease from 3.2% in March and 5.8% in April of the previous year. Heather Long, chief economist at Navy Federal Credit Union, noted that this is one of the lowest rates observed in the past 65 years, with the last similar rate recorded at 2.2% in June 2022.
The decline in savings is attributed to rising living costs that outpace wage growth. Inflation increased by 3.8% in April compared to the previous year, while average hourly earnings rose by 3.6%, indicating that wage growth is lagging behind inflation. Essential expenses such as groceries, utilities, and gasoline have contributed to the financial strain on households. The national average price for gasoline reached $4.43 per gallon as of Thursday, according to AAA data.
A survey by NerdWallet revealed that 37% of Americans plan to use credit cards or loans to cover expenses this month, including 35% of households earning over $100,000 annually. Additionally, Fidelity reported an increase in the number of workers tapping into their 401(k) retirement savings, with 19.2% of workers having an outstanding loan, up from 18.8% a year earlier.