In a new report, Wall Street investment bank Goldman Sachs (GS) issues a dire warning about retirement savings in America.
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According to an analysis by Goldman Sachs, 80% of American workers are making little or no progress in their savings for retirement. Rising living costs are making it increasingly difficult for people to put money aside and invest for the golden years.
The investment bank notes that 40% of working Americans are currently living paycheck-to-paycheck, with an additional 40% saying they aren’t making “meaningful progress” towards their retirement goals. At the same time, the total cost of retirement in the U.S. is rising by about 4% a year, which is faster than the rate of inflation.
Empty Piggy Banks
If current trends hold, more than half (55%) of American workers will be living paycheck-to-paycheck by 2033. At that point, the total cost of retirement is likely to be $1.7 million, up from $1.1 million in 2023, concludes the investment bank in its analysis.
“These findings force us to ask a very critical question: Does the retirement math still work?” said Greg Wilson, head of retirement at Goldman Sachs, on a conference call with media to discuss the report’s findings. “The answer is no. Telling workers just to ‘save more’ ignores the realities they face.”
Is GS Stock a Buy?
The stock of Goldman Sachs has a consensus Moderate Buy rating among 13 Wall Street analysts. That rating is based on six Buy, six Hold, and one Sell recommendations issued in the last three months. The average GS price target of $769.22 implies 1.63% downside from current levels.
