Household saving is central to both individual economic security and macroeconomic stability, yet the saving rate varies significantly across European countries with similar economic conditions. The purpose of this study is to analyze the factors driving households' saving rates in the EU-27, Norway, the United Kingdom, and Turkey during the period 2004–2022, based on the life-cycle hypothesis and the theory of precautionary saving.

The study employs a quantitative panel data method using data from Eurostat, and the World Bank. The saving rate serves as the dependent variable, while independent variables include disposable income per capita, consumption, wealth, real interest rate, age distribution, life expectancy and dummy variables for economic crises. The analysis is conducted using panel regression.

The results show that higher disposable income and consumption have the strongest associations with the saving rate (positive and negative effects, respectively). The real interest rate has a weakly positive effect, while life expectancy and the proportion of elderly exhibit unexpected signs. Economic crises lack significant impact. The models explain 86–90% of the variation in the saving rate.

The conclusions partially support the life-cycle hypothesis but challenge the theory of precautionary saving, as households do not appear to significantly increase saving during crises. Practical implications include the need for policies that strengthen income growth to promote saving and capital formation.