definition of "personal savings rate"

[Machine_Elf]

In [url=http://www.newsweek.com/2010/08/30/the-saving-mentality-is-hurting-the-economy-s-recovery.html]this article] on how consumer saving is hurting the economy, they write:

@Newsweek

In 2007, the personal savings rate (the share of after-tax income devoted to saving) was 2 percent. Now it’s about 6 percent.

Question does that personal savings rate include money that people are saving for retirement, or not?

If it does, that seems appalling, even if it includes retired folks who are no longer saving for retirement but are instead spending their retirement nest egg as planned.

[SmartAlecCat]

Martin Feldstein: America’s saving surprise discusses the same report. It implies that the savings rate of concern does include retirement saving.

About the decline down to 2%, it says:

But, after 1985, a variety of changes caused saving to decline until it reached less than 2 per cent in 2007. One reason was that rising stock markets and higher house prices made individuals wealthier, reducing their need to save for retirement and allowing retirees to dissave more. The general shift from defined-benefit pension plans to defined-contribution plans meant that employees felt the effect of rising share prices directly in their personal accounts.

He surmises that the reversal of those facts have contributed to the recent reported rise.