US Wealth Disparity (Patreon)

This was interesting... in particular the red bump!

Households' Yearly Income

• Top 1% = ~$659K

• Next 9% = ~$359K

• 60% to 89% = ~131K

• 30% to 59% = ~$72k

• 10% to 29% = ~$30k

• Bottom 9% = <$17K

Savings Rates by Income

• Top 1% = ~38%

• Next 9% = ~12%

• 60% to 89% = ~4%

• 30% to 59% = ~1%

• 10% to 29% = ~10%

• Bottom 9% = negative (dissaving)

So basically, only 30% are saving—but how is it that those earning 10–29% less can save so much, while those earning 30–59% more can’t? I have a few ideas:

The 10–29% income group saves more than the 30–59% group because of a few key reasons:

I could be offbase here

1. Government help: Lower earners get more support (tax credits, housing aid, food and health benefits), freeing up cash to save.

2. Middle-class squeeze: The 30–59% group earns too much for govt help but not enough to cover high living costs and debts, leaving little to save.

3. Spending habits: Middle earners often spend to “keep up” w the Jones', while lower earners tend to be more cautious.

4. Informal saving: Some lower earners save through family or community systems not captured in typical banking data.

H.T Sanjay for the data