Topline takeaway: a widening planning gap
As households brace for a longer life span and a shifting market, the Goldman Sachs Retirement Survey & Insights Report 2025 paints a clear picture: most workers aim to replace about 57% of their pre-retirement income, yet retirees typically live on roughly 60% of that income. Even more telling, roughly three-quarters of savers describe their retirement expectations as challenging, while a solid majority of retirees report satisfaction with their actual standard of living. The data, released late last year, remains the benchmark for 2026 planning and policy conversations about how Americans fund longevity.
The numbers underscore a persistent gap between what people hope to achieve and what they actually experience once they stop working. Analysts say the mismatch isn’t just about savings rates; it reflects how households price longevity risk, healthcare costs, and inflation over decades.
What the Goldman Sachs retirement survey reveals about expectations and reality
- Worker targets: About 57% replacement of pre-retirement income is the median goal among survey respondents.
- Actual retiree outcome: Retirees report replacing around 60% of their pre-retirement income on average.
- Satisfaction signal: About 71% of retirees say they are satisfied with the level of income they have in retirement.
- Scope of the gap: A large share expect to live on less than half their working income, and only a minority target replacement levels above 70%.
Goldman Sachs emphasizes that the survey’s figures aren’t a prescription but a snapshot of planning behavior. The divergence between target and reality points to longevity risk, healthcare costs, and the uncertain path of Social Security benefits as key disruptors for household finances in retirement.
Why many savers underestimate the challenge—and how to fix it
Several factors help explain the gap. First, households often overlook the cost of healthcare and long-term care as they project retirement spending well into their 80s and 90s. Second, asset markets can complicate the plan: returns in the early retirement years may fall short of expectations, especially when withdrawals begin during periods of elevated volatility. Finally, the pace of wage growth and inflation can outstrip savings momentum, eroding purchasing power over time.
In response, the Goldman Sachs team points to a more resilient, layered approach to retirement income—one that blends guaranteed lifetime income with a disciplined withdrawal strategy from investments. The research suggests the structure can lift overall retirement income by about 23% while helping preserve wealth across a long retirement horizon.
Strategies that move the needle
Three practical levers stand out for households aiming to bridge the gap identified by the goldman sachs retirement survey:
- Layered income: guaranteed plus market returns. A hybrid plan combines Social Security or pensions with annuities or other guaranteed streams and a stock/bond portfolio. This mix can increase retirement income by roughly 23% without surrendering flexibility in later life.
- Personalized planning boosts savings efficiency. When advice is tailored to an individual’s spending, health outlook, and goals, the savings-to-income ratio rises by about 27%, according to the survey’s behavioral insights.
- Optimize guaranteed sources and withdrawal rules. Coordinating Social Security claiming strategies, pension options, and tax-efficient withdrawals can improve real spending power by reducing unnecessary taxes and sequence-of-return risk.
For workers, this means early planning sessions that map out a long-tail forecast—thirty to forty years of retirement—are worth more than last-minute adjustments. For retirees, re-evaluating withdrawal rates, healthcare coverage, and legacy goals can sustain a higher standard of living even as market conditions shift.
The market and policy backdrop as 2026 unfolds
Markets finished a volatile 2025 with modest gains, and early 2026 has brought a mix of headlines—economic resilience, inflation easing further, and ongoing questions about healthcare costs and the pace of wage growth. The 2025 survey comes amid a backdrop of moderate interest rates and an international outlook that keeps retirement planning sensitive to interest-rate shifts and equity-market volatility. Analysts caution that even with solid progress on saving rates, the real test lies in longevity risk and the cost of healthcare premiums, which continue to trend higher than general inflation.
Policy discussions around Social Security reform, Medicare expansion, and the tax treatment of retirement accounts also color planning decisions. Individuals who align their personal plans with potential policy changes tend to breed more confidence in long-term outcomes, a theme echoed by the survey's authors and independent researchers alike.
What savers should do now
- Get a tailored retirement map. A detailed projection that includes healthcare costs, housing, and long-term care can reveal gaps early, enabling course-correcting actions before retirement begins.
- Consider guaranteed income options. Evaluate annuities or pension-equivalent products that align with risk tolerance and liquidity needs. The goal is a sustainable income floor that reduces withdrawal pressure from the investment sleeve.
- Coordinate Social Security strategies. Timing, spousal benefits, and tax implications can dramatically alter lifetime benefits and annual cash flow.
- Adopt a flexible investment plan for retirement. A glide path that shifts toward lower risk near retirement helps preserve capital while allowing for growth when markets cooperate.
- Review healthcare and long-term care protections. Long-term care insurance or similar protections can be a prudent hedge against one of retirement’s biggest unknowns.
The takeaway from the goldman sachs retirement survey is clear: preparation beats spontaneity. A proactive, personalized plan that blends guaranteed income with prudent investing can close a meaningful portion of the gap between what savers want and what retirees experience.
Bottom line: planning as the antidote to uncertainty
As 2026 unfolds, households that treat retirement planning as an ongoing project—revisiting assumptions about inflation, healthcare costs, and investment risk—stand a better chance of achieving the comfort level they desire. The goldman sachs retirement survey cautions against complacency: a 57% replacement target is not a failure, but a starting point for a more rigorous, durable strategy that recognizes longevity and market realities.
Financial coaches, planners, and institutions are responding with tools that encourage joint planning, personalized projections, and transparent discussions about risk and income. In an era of shifting demographics and evolving policy frames, the core message remains unchanged: the sooner a household builds a robust, layered retirement plan, the higher its odds of turning ambition into sustained financial security.
About the data
The goldman sachs retirement survey is part of Goldman Sachs’ ongoing effort to illuminate how Americans save, spend, and plan for retirement. The 2025 Insights Report reflects survey responses from thousands of workers and retirees across the United States, spanning a range of ages, incomes, and family situations. The findings aim to inform individuals and policymakers about the practical steps that can improve retirement outcomes in a changing economic landscape.
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