Summary

This report is designed to present information about national saving--as measured in the National Income and Product Accounts--and its implications for economic growth and retirement security. GAO addresses the following questions: (1) what is personal saving, how is it related to national saving, and what are the implications of low personal saving for Americans' retirement security? (2) what is national saving and how does current saving in the United States compare to historical trends and saving in other countries? (3) how does national saving affect the economy and how would higher saving affect the long-term outlook? (4) how does federal fiscal policy affect national saving, what federal policies have been aimed at increasing private saving, and how would Social Security and Medicare reform affect national saving? and (5) what are the key issues in evaluating national saving?