national savings rate

A savings rate that refers to the percentage of gross domestic product (GDP) savings by households in a country. It indicates the financial state and growth of the country, as household saving is the main source of government borrowing to fund public services. The NSR varies among countries and is influenced by various factors such as retirement age, borrowing constraints, income distribution over lifetime, demography and welfare state. For example, a country that pays retirement pensions generated from tax levied on people of working age will have lower NSR compared to countries where people have to save to personally provide for their retirement.