{"id":110520,"date":"2025-10-09T06:24:22","date_gmt":"2025-10-09T06:24:22","guid":{"rendered":"https:\/\/www.europesays.com\/ie\/110520\/"},"modified":"2025-10-09T06:24:22","modified_gmt":"2025-10-09T06:24:22","slug":"does-retirement-math-still-work-goldman-warns-of-growing-financial-vortex-2","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ie\/110520\/","title":{"rendered":"Does Retirement Math Still Work? Goldman Warns of Growing \u2018Financial Vortex\u2019"},"content":{"rendered":"

For some, retirement is starting to feel<\/a> like the elusive green light in \u201cThe Great Gatsby\u201d: much-desired, an essential element of the American Dream \u2026 and forever out of reach.<\/p>\n

Retirement math might not add up anymore, according to recent research<\/a> from Goldman Sachs. Roughly four in 10 US workers spanning Gen Z, Millennials and Gen X are living paycheck to paycheck, and nearly three-quarters struggle to save for retirement. If that trend continues, more than half could be living paycheck-to-paycheck by 2033. Experts said the trend is caused by the rising costs of living and longer life expectancies, and that advisors should know how to adjust their advice accordingly.<\/p>\n

\u201cTelling workers to save more ignores the realities most workers face,\u201d Greg Wilson, global head of retirement within Goldman\u2019s asset and wealth management arm, said during a webinar. \u201cThe mounting challenges American workers face [amid] rising costs and competing financial priorities\u2026 make it harder than ever to save for retirement.\u201d<\/p>\n

Polar (Financial) Vortex<\/strong><\/p>\n

The cost of everything from housing to childcare has risen substantially over the past two decades, leaving little room for retirement contributions, a trend Goldman Sachs called a growing \u201cfinancial vortex.\u201d From 2000 to 2025, the cost of homeownership as a share of income jumped from 33% to 51%; for private college, from 65% to 85%; and for healthcare, from 10% to 16%. \u201cThere is less room in people\u2019s wallets today than there was 20 years ago,\u201d said Chris Ceder, senior retirement strategist at Goldman. \u201cThis structural shift is really underpinning many of the challenges we see for retirees today.\u201d<\/p>\n

Still, Americans haven\u2019t lost faith in their retirement prospects \u2014 at least not yet. The survey found that 68% of workers feel \u201csomewhat confident\u201d about hitting their retirement goals, and more than half increased their savings over the past year. But under the surface, confidence is fragile: 58% fear they\u2019ll outlive their savings, and nearly half find managing those savings stressful. That confidence gap is a hallmark of the new retirement landscape, Ceder said. \u201cMarkets are fairly up, account balances are up, but when you think through those longer-term risks, they\u2019re still very present in the minds of retirement savers,\u201d he added.<\/p>\n

All of this makes retirement planning an increasingly essential service that can make a big difference in pre-retirees\u2019 prospects. According to the Goldman report:<\/p>\n