[Professional]

That savings rate does not include 401k plans, other employer sponsored plans. If you factored that into the national savings rate, you’d see a different picture altogether.

[sphinx]

That savings rate does not include 401k plans, other employer sponsored plans.

I've read that enough times to believe it to be true, but what is the rationale? Can you explain the underlying methodology?

[groanup]

That savings rate does not include 401k plans, other employer sponsored plans. If you factored that into the national savings rate, you’d see a different picture altogether.

Nor does it include premium products such as life insurance cash values and annuities does it? How about people who make regular payments into mutual funds?

[irishjuggler]

That savings rate does not include 401k plans, other employer sponsored plans.

100% Wrong.

From the Federal Reserve Bank of San Francisco:

"Since IRA and 401(k) contributions are not part of personal outlays (and, therefore, must be included in the difference between personal income and personal outlays), these contributions are included in national saving computations." http://www.frbsf.org/education/activities/drecon/answerxml.cfm?selectedurl=/2005/0508.html