The following chart, making the rounds lately, suggests an unprecedented level of savings among Americans. The problem is that it is an illusion amid the reality of rising economic uncertainty.

Savings Economic Uncertainty, The Illusion Of Soaring Savings Amid Rising Economic Uncertainty

The Savings Mirage

To understand why the “savings rate” is not what it appears to be, you must understand its underlying construction. The website HowMuch.com recently provided that calculation of us.

Savings Economic Uncertainty, The Illusion Of Soaring Savings Amid Rising Economic Uncertainty

While the table is dated, the point is that for most, there is often little left for “savings.”