Goldman Sachs: 401(k) savers have 29% more put back, conventional saving may not be enough

A new Goldman Sachs Asset Management report states that a retirement funding crisis is still ahead, and conventional investment advice may not be sufficient to weather it.

“While many acknowledge the looming retirement crisis, the traditional advice to simply save more may fail to account for the complex and evolving realities faced by millions of Americans,” the annual 2025 Retirement Survey and Insights Report states.

In July, Goldman Sachs surveyed 5,102 Americans — 3,588 across generations who are still working and 1,514 ages 45-75 who are retired. The company also partnered with the behavioral economics firm, Escalent, to survey 250 plan sponsors who work for an organization that offers a 401(k) or 403(b) plan to employees and have at least $300 million in plan assets (44% of the sample had above $1 billion in plan assets).

Those with 401(k) savings were able to save 29% more compared to those without 401(k) access, according to the report.

“The industry remains appropriately focused on expanding access to 401(k) plans, as the evidence clearly demonstrates the benefits of consistent retirement saving when employees can participate in an employer-sponsored plan,” the report states. “Our survey findings align with this trend: respondents with 401(k) access report higher accumulated saving rates relative to income, greater confidence in their retirement preparedness, and a higher likelihood of being on track for their retirement goals.”

It adds that moving forward, workers will have to “strike a finely tuned balance” between immediate and long-term financial needs.

“The retirement savings landscape is being reshaped by the growing savings gap driven by rising costs and the increasing number of competing financial priorities facing individuals and families,” the report states. “Increases in expenses such as healthcare, housing, education, and caregiving have outpaced wage gains since 2000, making it more difficult for individuals to allocate sufficient resources toward their retirement savings.”

According to the survey results, the following have increased since 2000:

• • Private college: 20%
  • Home ownership: 18%
  • Public college: 11%
  • Renting: 8%
  • Center-based child care: 6%
  • Family coverage healthcare: 6%
  • Student loan repayment: 1%

Sixty-seven percent of respondents said that having too many monthly bills affects their ability to save for retirement. Sixty-four percent attribute their lack of retirement savings to hardships, such as home repairs, while 62% attribute it to caring for and financially supporting family.

Credit card debt (58%), loan debt (57%), time off work for child or elder care (55%), and saving for college for themselves or others (49%) also contributed to respondents’ lower retirement savings.

When it comes to inflationary trends in key household priorities, such as college tuition, childcare, and healthcare, Goldman Sachs says increases should be viewed as “a persistent, structural trend rather than a temporary flare-up in inflation.”

“How households, employers, and policymakers respond to this trajectory will materially influence the ability of savers to meet long-term goals, including retirement readiness,” the report states.

Over the past five years, Goldman Sachs says it has noted a trend of declining stress levels and increasing confidence in retirement savings ability.

“While the impact of competing financial priorities on saving has generally lessened since 2021, the height of the COVID era, our 2025 survey data indicates a recent uptick in these concerns, likely driven by inflation concerns, impact from tariffs, and market volatility,” the report states. “Despite some market swings in early 2025 that led to slight dips in 401(k) balances, overall account balances have increased year-over-year, suggesting that favorable market conditions have contributed to higher account balances and saver optimism.”

Overall, regardless of plan type, more than 80% of retirees said they believe they will have enough savings to last their lifetime.

“While savers report they are on track for retirement, a large portion also believe that they will run out of money during their lifetime,” the report states. “And projected benchmarks of savings-to-income ratios vs. what people have actually saved are falling further behind as savers get older.”

Nearly 70% of savers are feeling optimistic that their retirement savings are on track. However, 60% expect to outlive their savings.

On average, 30% of working Baby Boomers report that competing priorities are materially constraining their ability to save for retirement. This rises to more than 50% for Gen X, exceeds 75% for Millennials, and remains above 70% for Gen Z.

“A large share of respondents aim for less than 50% of working income in retirement, and only a minority target more than 70% — a benchmark many financial professionals cite as necessary to maintain one’s standard of living,” the report states.

The report concludes that savers are making progress; however, they “may need to recalibrate income goals, stress-test plans under adverse scenarios, and consider strategies to better align retirement income with desired living standards.”

“These issues illustrate the need for personalized retirement planning, which can help individuals plan with more realistic assumptions,” the report states. “An estimated 75% of working Americans have access to an employer-sponsored retirement plan. As new start-up incentives and small-business solutions, like pooled employer plans, address historical barriers — such as administrative complexity and cost —broadening plan availability continues to be a foundational lever for improving retirement outcomes across the workforce.”

Those in the collision repair industry who want to provide retirement plans for their employees may be able to do so with the Society of Collision Repair Specialists (SCRS) 401(k) Multiple Employer Plan.

Some of the plan highlights include:

• • Customization
  • Administrative support to help with transition, onboarding, and employee education
  • Executive Committee within SCRS that conducts quarterly reviews of the plan and investments
  • Pre-negotiated declining fee schedule, meaning that as the plan grows, costs automatically go down
  • SCRS annual tax filing preparation
  • One audit for the entire plan, saving companies thousands of dollars by not having to do their own

For more information, reach out to Scott Broaddus by phone at (804) 327-0424 or by email at [email protected], or Coley Eckenrode at (804) 327-0425 or [email protected]. An information request web form is also available on the MEP page.

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