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

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.

"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."

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