The report showed that U.S. workers have increased their savings in the past year as economic conditions have improved. As a result, 65% of workers are confident in their ability to meet retirement goals – up from 57% in 2022. Still, the report shows that the "financial vortex" of responsibilities that undermine retirement plans has gotten worse, and workers' ability to withstand those challenges has not improved.

"Only 36% of U.S. workers have three months of income or more saved for emergencies," said Chris Ceder, a senior retirement strategist in asset management at Goldman Sachs. "Unplanned and often unpredictable financial challenges push too many of us off track, and catching up may be difficult. Saving for retirement must remain a top priority."

According to the report,

• 44% of respondents cashed out retirement savings at least once upon a job change (up from 42%),
• 42% stopped saving for retirement due to a financial hardship (up from 33%),
• 39% left the workforce to provide caregiving (up from 22%) and
• 22% left their full-time job for a part-time job to provide caregiving (up from 10%).

Workers are concerned about being able to retire when they want to retire. Among working respondents, 21% believe the financial vortex will delay their retirement by four or more years. Among retirees, 50% retired earlier than expected – of those early retirees, 47% retired for reasons outside of their control, and 54% retired more than four years earlier than expected.

Ceder said the predominant system of defined contribution plans "by and large has not evolved to really address the things that affect how people save for retirement." He said a critical question is how the system can change to better meet savers' needs, noting that circumstances that are disruptive to retirement planning are "on the rise over the generations."

Related: Beyond retirement planning: Support for employees' more-urgent money matters

Ceder said the report showed that retirement savers who are able to stick to the basics and save consistently from ages 25 to 65 with a diversified portfolio will retire with sufficient savings. However, those who face financial vortex moments struggle to meet that savings level.

For instance, Ceder highlighted that the research report showed that savers who had student loans that contributed to delayed saving for retirement for five years have 19% lower retirement savings than they would have otherwise, while those who had to stop working for four years in the middle of their career to provide caregiving have 18% lower retirement savings. Meanwhile, someone who retires four years early sees 25% lower savings.

"We look at all of these factors and then we say, 'Gosh, it seems like more of these people are going to experience more than one of these over the course of their lifetime,'" Ceder said. "That multi-scenario factor, it's easy to see how someone could get to between 30 to 40% lower in their overall savings."

Ceder noted that 47% of the current employees among survey respondents said they are managing their money on their own without advice, but the survey also showed that one of the top retirement-related services that individuals want from their employers is help with retirement planning.

"What we really need to help is for people to understand how to manage their lives, how to manage their financial lives, how to be more thoughtful about managing the trade-offs, how to be more thoughtful about coping and being resilient when it comes to when those unexpected financial needs arise," Ceder said. "And to help people chart that personalized path to retirement. There's no one singular path that's going to get people to retirement. We have to help people bend and twist, and pivot, and when they come off track, get back on track."

Ceder said the retirement planning landscape needs to adopt a "more personal" approach to help people "navigate the unexpected," improving their financial resiliency in the face of life challenges that emerge. Key considerations are improved financial planning, financial education and emergency savings offerings, among others.

"It's not necessarily financial planning – it could be other types of accounts and other types of resources that can really help balance out those moments," Ceder said. "Because really what we're trying to do when we think about it from a planning perspective, we want to help people cope with those moments, and we want to help people recover from those moments."