Personal savings rate tumbles in June

Americans’ personal savings rate slipped to 4.6% in June, from 6.2% the previous month, the Department of Commerce’s Bureau of Economic Analysis reported today. Despite the drop, the June rate was higher compared with the same period a year earlier, when it stood at 3.5%. In 2007, by contrast, “we were looking at savings rates hovering between 1.8% and 0.8%,” said BEA spokesman Thomas Dell. The figures released today “show an upward trend in savings rates, although it is down from May,” he added. “The numbers released today underscore what we’ve been witnessing for the past several months — the overall state of the economy, coupled with steady concerns over job security, has created a quantifiable uneasiness regarding personal finances,” Cathy Weatherford, chief executive and president of the Insured Retirement Institute in Washington, said in a statement. “Consumers are looking beyond 401(k) plans to secure a sound financial future and insured retirement strategies have an important role to play in providing peace of mind throughout retirement,” she said. IRI represents the variable annuity industry.