The Goldman Sachs Retirement Survey Found That Only 57% of Americans Plan to Replace Even Half Their Income in Retirement

"Working Americans aim for an average income replacement rate of about 57% in retirement. A large share of respondents expect to live on less than half of their working income, and only a minority target levels above 70%. The survey does not prescribe a benchmark, but the contrast between what savers target and what retirees actually report creates a meaningful gap. Retirees in the survey receive roughly 60% of their pre‑retirement income, and 71% say they are satisfied with that level, which suggests that many households may be underestimating what they will need or overestimating how far a lower replacement rate can stretch."

"Too many monthly expenses affect 67% of respondents. Financial hardship affects 64%. Caring for and financially supporting family members affects 62%. Credit card debt affects 58%. Paying down existing loans affects 57%. These pressures form the Financial Vortex that Goldman describes, a structural squeeze created by rising costs in housing, healthcare, childcare, and education. When these categories take a larger share of income, the replacement target tends to fall, not because it is optimal, but because it feels achievable."

"The report highlights two forces that make a low replacement target risky. The first is the rising cost of retirement itself. Average expenditures for households aged 65 and older have grown by about 3.6% annually since 2000, and the estimated total cost of retirement is projected to grow by roughly 4% per year. The second is longevity, as the average retirement length has increased from 17.5 years in 2000 to 19.2 years in 2023, with projections indicating further increases."

Working Americans target an average income replacement rate of about 57% in retirement, with many expecting to live on less than half of working income. Only a minority targets levels above 70%. Retirees report receiving roughly 60% of pre-retirement income, and 71% report satisfaction with that level, creating a gap between targets and outcomes. Savings shortfalls stem from competing monthly priorities affecting 67% of respondents, financial hardship affecting 64%, and family support affecting 62%. Credit card debt affects 58% and loan repayment affects 57%. These pressures form a Financial Vortex driven by rising housing, healthcare, childcare, and education costs. Retirement costs rise about 3.6% annually since 2000, with total retirement cost projected to grow about 4% per year, while retirement length increases from 17.5 years in 2000 to 19.2 years in 2023.

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