New Goldman Sachs report reveals forces driving demand for retirement-planning advice.

By Goldman Sachs Personal Financial Management

Goldman Sachs Asset Management has released its Retirement Survey & Insights Report 2022, which offers insights from Americans preparing for, transitioning to and managing their finances in retirement. The report explains how high inflation, rising interest rates and market volatility have created a challenging environment for saving and generating sustainable income for retirement; preferred sources for advice; and considerations for juggling a vortex of competing financial priorities, and investing for and managing income in retirement.1

Among the respondents who are retired:

  • More than half (51%) live on less than 50% of their pre-retirement annual income.
  • Only 25% generate what many estimate as the amount needed to maintain their standard of living (70% or more of pre-retirement income).
  • Their greatest concerns are inflation (71%) and future health care costs (51%).

Among the respondents who are still working:

  • More than 40% feel their savings are behind schedule.
  • Nearly three quarters plan for too little retirement income.
  • Almost all (95%) say receiving financial help is important to successfully manage their retirement savings.

According to the report, 42% of the retirees say they’re spending less, but many still struggle for solutions for generating income, citing it as a top challenge—along with understanding how long their savings will last. That may be why 29% report the most unexpected aspect of managing retirement spending was understanding what their income will be to know what they can spend. And while more than a third say they prefer to work part time to help generate income (up from 25% last year), it’s not an option for many.

Financial advisors viewed as the top source of education & advice (29%)2

Given the complexity and financial uncertainty of retirement, it’s understandable that 79% of the retirees believe financial advice and guidance is important to manage retirement income and investments; 46%3 say they prefer to receive advice from a financial advisor, while 38%3 of working respondents say they prefer to receive advice from an advisor. The key is to choose an experienced advisor on the same page as you and committed to partnering with you to and throughout retirement.

“Americans are facing a new reality, causing many to rethink what retirement looks like,” says Joe Duran, Head of Goldman Sachs Personal Financial Management (PFM). “As people navigate uncertainty, insufficient savings and competing financial responsibilities, we believe planning for the unexpected is imperative. Most advisors offer retirement accumulation and income planning, but not enough support clients in budgeting or managing competing financial priorities from elder care to education funding. True financial planning requires working closely with clients on their entire financial lives.”

How a Goldman Sachs personal financial advisor can make a difference

As a client, your advisor will go deeper to understand your financial mindset, your view on money, and how your life and money connect. They use those insights to help you create a plan tailored to your values, priorities and investing preferences. As life unfolds, your advisor acts as a partner in your corner, adjusting your strategy to help you feel more confident about using money to live the life you want today, while planning for tomorrow.

Connect with one of our advisors today to learn how they can put Goldman Sachs’ vast resources to work for you to create a personalized strategy to help maximize your return on life, today and tomorrow.

1The survey was conducted by Goldman Sachs Asset Management and Qualtrics Experience Management among 1,566 U.S. participants between July and August 2022. Findings provide insights from a diverse set of perspectives, including (i) working individuals (967 working individuals across generations—working Baby Boomers, Generation X, Millennials, and Generation Z), (ii) retired individuals (599 retired individuals age 50-75) and (iii) gender and generational breakdowns for both populations.

2 Among all respondents (those retired and working)

3 Source:https://www.gsam.com/content/gsam/us/en/individual/about-gsam/news-and-media/2022/retirement-survey-press-release-retired.html?

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ABOUT THE AUTHOR

Goldman Sachs Personal Financial Management

United Capital Financial Advisers, LLC d/b/a Goldman Sachs Personal Financial Management (“GS PFM”) is a registered investment adviser and an affiliate of Goldman Sachs & Co. LLC and subsidiary of The Goldman Sachs Group, Inc., a worldwide, full-service investment banking, broker-dealer, asset management, and financial services organization.

The information contained herein is intended for informational purposes only, is not a recommendation to buy or sell any securities, and should not be considered investment advice. GS PFM does not provide legal, tax, or accounting advice. Clients should obtain their own independent legal, tax, or accounting advice based on their particular circumstances. Please contact your financial adviser with questions about your specific needs and circumstances.

Information and opinions expressed by individuals other than GS PFM employees do not necessarily reflect the view of GS PFM. Information and opinions expressed in this article are as of the date of this material only and subject to change without notice.

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