The savings ratio
is an economics term
that refers to the proportion of income
which is saved, usually expressed for household savings as a percentage of total household disposable_income. It can be calculated gross
or net, when calculated net, a deduction
is made for the depreciation
of fixed assets. The ratio differs considerably over time and between countries. The savings ratio is dependant on: The proportion of older people, as they have less motivation and capability to save; the tax
system, it can encourage or discourage saving; the rate of inflation, expectations of rising prices encourage people to spend now.