Goldman Sachs survey finds Americans target low retirement income replacement
Updated
Updated · 24/7 Wall St. · May 10
Goldman Sachs survey finds Americans target low retirement income replacement
7 articles · Updated · 24/7 Wall St. · May 10
Working Americans aim to replace about 57% of pre-retirement income on average, while retirees report receiving roughly 60%, with 71% satisfied at that level.
Goldman said monthly expenses, hardship, family support and debt suppress savings goals, while retirement costs have risen about 3.6% annually since 2000 and retirements are lasting longer.
The report says combining guaranteed income with investment withdrawals could lift retirement income by about 23%, while earlier saving, personalised plans and consistent saving behaviour also improve outcomes.
As rising costs crush savings, is the American retirement dream now mathematically impossible for younger generations?
Experts tout annuities as a retirement lifeline, so why do most Americans avoid buying them?
Goldman Sachs 2025 Retirement Survey: The New Economics of Retirement and the Urgent Need for Systemic Solutions
Overview
The Goldman Sachs 2025 Retirement Survey reveals that Americans face a new economics of retirement, shaped by major shifts in how people earn, spend, and save. This change is driven by a 'Financial Vortex,' where rising costs outpace wage growth, causing significant financial strain. As expenses for major life events take up more of household income, retirement is becoming less affordable for many. Many workers are also setting retirement income goals that are too low for future needs. These trends highlight the urgent need for smarter saving strategies and more realistic planning to secure a stable retirement.