As one of the biggest names in the asset management landscape, Goldman Sachs has major resources and puts out plenty of important reports. The most recent may have some very interesting points of information for advisors and investors to consider. The firm’s “Retirement Survey & Insights Report 2025” has some important information for advisors to gather as they continue to process a shifting investing landscape.
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#1: Cost of Living Has Eaten Into Retirement Savings Everywhere
Inflation has been a key challenge for investors preparing for retirement. Important expenditures have seen huge price increases according to Goldman’s report. For example, the overall cost of retiring has risen to 29% of income, compared to 21% in 2000. Healthcare now constitutes 16% of income compared to 10% in 2000, while homeownership has had perhaps the biggest increase.
The “cost of homeownership” sat at a remarkable 51% of income compared to 33% in 2000, according to the report. That has investors concerned. Some 58% of respondents shared that they believe they will outlive their savings. That interestingly contrasts with almost 70% of savers responding that they are feeling optimistic.
#2: Financial Strain Impacts Spread Across Earnings Categories
Intriguingly, those cost issues are spread across all kinds of different clients. According to the report’s survey data, “a meaningful share of higher earners also report living paycheck to paycheck or making only limited progress toward long-term financial goals, underscoring that elevated expenses, debt burdens, and lifestyle inflation can erode savings capacity across the income spectrum.”
Lifestyle creep may be the culprit, the report’s authors suggest. While those in the first bracket, earning less than $50,000, struggle overall due to rampant inflation, some 40% of earners above $300,000 also report living “paycheck to paycheck.” The lowest number of paycheck to paycheck earnings were in the $200,000 to $300,000 range. That may be a factor for advisors to watch out for.
#3: Financial Grit Makes the Biggest Impact
Of the myriad solutions available to investors looking to make a strong impact on retirement outcomes, the report found that “financial grit” stood out the most. That involves, according to the analysis, having a sense of optimism about the ability of investors to persevere towards their goals.
Financial grit had a 49% impact on income; those who self identified as having those qualities had a 49% improvement on those goals compared to those who did not report that attribute. Access to a 401(k) plan and access to personalized financial advice came in as the second and third biggest factors by percentage of impact on meeting goals.
Advisors and investors can find the report here to read on for more information on retirement investing.
Originally published on Advisor Perspectives
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