New Economics of Retirement: New Solutions Provide a Ray of Hope

By Goldman Sachs

In our annual Retirement Survey & Insights Report, we are pleased to present findings that may challenge conventional wisdom about retirement preparedness in America. While many acknowledge the looming retirement crisis, the traditional advice to simply save more may fail to account for the complex and evolving realities faced by millions of Americans.

This year’s report introduces the “new economics of retirement,” as we grapple with the question “does the retirement math still work?” The report illustrates how rising costs and competing financial priorities are fundamentally reshaping the retirement planning landscape and making affordability a central concern for savers nationwide. As these trends persist, we examine the true feasibility of achieving retirement readiness and explore actionable solutions to help individuals and families navigate these shifting dynamics.

The cost of major life events is taking up a larger percentage of household income, a trend that affects workers at the lowest level of income as well as the highest. The ’save more’ strategy may be sufficient for some, but we believe many others will need to more thoughtfully use investment, advice, and retirement income strategies to close their savings gap. Otherwise, retirement may increasingly become unaffordable for too many workers.”
Get the report here