More Americans believe they’re saving enough for retirement, according to Goldman Sachs’ “Retirement Survey & Insights Report 2023,” which found that 65 percent of respondents felt their savings were on track, up from 57 percent last year.
Financial challenges that the report defined as a “financial vortex” – such as credit card debt, college savings requirements, student debt, and the need to give care to disabled or elderly family members – could reduce retirement savings by up to 37 percent over the long term.
Having sufficient emergency savings and improving financial literacy are among the actions that individuals and employers can take to manage the impact of the financial vortex, said Goldman Sachs.
The report also found that:
- 44 percent of retirement plan participants cashed out of their savings at least once because of a job change, up from 42 percent in 2022;
- 42 percent stopped saving for retirement because of financial hardship, up from 33 percent in 2022;
- 39 percent of participants report having left the workforce at some point to care for somebody else, up from 22 percent in 2022; and
- 22 percent said they have left full-time work for part-time work because of their caregiving responsibilities, a figure that rose from ten percent last year.