Caught in a financial vortex: Too many Americans are behind in saving for retirement

Many current retirees are caught in a financial vortex of rising inflation and economic uncertainty that is putting their savings to the test. Just more than half are living on less than 50% of their preretirement annual income, the Goldman Sachs Retirement Survey & Insights Report 2022 found.

“The current environment is driving considerable uncertainty for retirees,” said Greg Calnon, head of multi-asset solutions at Goldman Sachs Asset Management on the Goldman Sachs webinar held on October 11 to discuss their findings. “And those living on less than half of their pre-retirement income are particularly vulnerable. Spending needs are primarily elevated due to high inflation; fixed-income portfolios are under pressure due to rising interest rates; and equity portfolios have declined notably as the markets try to assess the impact of a potential recession. We believe these challenges raise concern for retirees regarding how much they can spend and how long their savings will last.”

Most retirees reported their greatest concern as inflation (71%), followed by future health care concerns (51%), potential reductions in future Social Security benefits (46%) and running out of money (44%). Each percentage has increased since the 2021 survey.