Rising costs reshape retirement savings, Goldman Sachs finds

Goldman Sachs’ Retirement Survey & Insights Report 2025 finds rising housing and healthcare costs have increased the estimated cost of retiring and left 58% of survey respondents worried they will outlive their savings. The report identifies “financial grit”, access to a 401(k) and personalized financial advice as the largest factors associated with better retirement outcomes.

The report compares current cost burdens with figures from 2000. It finds the overall cost of retiring rose to about 29% of income from 21% in 2000. Healthcare costs increased to roughly 16% of income from 10% two decades earlier. The largest change was in homeownership costs, measured at about 51% of income versus 33% in 2000.

Survey responses show mixed signals: 58% said they expect to outlive their savings while nearly 70% reported feeling optimistic about their financial futures. The report notes financial strain across income groups. Households earning less than $50,000 continue to struggle, and a meaningful share of higher earners reported tight cash flow. About 40% of respondents with household incomes above $300,000 said they live paycheck to paycheck, while the smallest share reporting that condition fell in the $200,000 to $300,000 range.

On factors linked to retirement success, the report defines “financial grit” as a sense of optimism and persistence in working on long-term goals. Respondents who identified themselves as having financial grit showed a 49% improvement in meeting income-related retirement goals compared with those who did not. Access to an employer-sponsored 401(k) plan and access to personalized financial advice were the second and third largest factors by percentage impact.

Goldman Sachs compiled the survey data and analysis for financial advisers and investors assessing retirement preparedness. The full Retirement Survey & Insights Report 2025, published by Goldman Sachs, provides the survey methodology and more detailed breakdowns of the findings.