Goldman Sachs' 2025 Retirement Investing Report: 3 Takeaways

• Homeownership costs have surged to 51% of income versus 33% in 2000, while healthcare expenses increased to 16% from 10%, significantly impacting retirement savings across all demographics
• 40% of earners making over $300,000 report living paycheck to paycheck, suggesting lifestyle creep affects high-income households, with the $200,000-$300,000 range showing the lowest paycheck-to-paycheck rates
• 'Financial grit' (optimism and perseverance) showed a 49% improvement in retirement outcomes, outpacing access to 401(k) plans and personalized financial advice as the top factor for meeting goals

Goldman Sachs 2025 Retirement Investing Report Summary

Goldman Sachs' latest "Retirement Survey & Insights Report 2025" reveals critical challenges facing retirement savers across income levels.

Rising Cost of Living Impact

Retirement costs have surged dramatically as a percentage of income. Overall retirement expenses now consume 29% of income versus 21% in 2000. Healthcare costs have increased from 10% to 16% of income over the same period. Most significantly, homeownership costs have skyrocketed to 51% of income compared to 33% in 2000. These increases have left 58% of survey respondents concerned about their retirement preparedness.

Financial Strain Across All Income Levels

The report reveals widespread financial pressure affecting all earnings categories, not just lower-income households. While earners making under $50,000 face inflation-driven challenges, remarkably 40% of those earning above $300,000 also report living "paycheck to paycheck." The $200,000-$300,000 income bracket showed the lowest percentage of paycheck-to-paycheck living. Goldman attributes this phenomenon partially to "lifestyle creep," suggesting spending habits may be outpacing income growth even among high earners.

"Financial Grit" as Key Success Factor

The report identifies "financial grit"—defined as maintaining optimism and perseverance toward financial goals—as the most impactful factor for retirement success. Investors demonstrating financial grit showed a 49% improvement in achieving retirement goals compared to those without this attribute. Access to 401(k) plans and personalized financial advice ranked as the second and third most important success factors.

These findings suggest advisors should focus on behavioral coaching alongside traditional investment strategies when helping clients prepare for retirement.