What’s Hurting Your 401(k) and How to Fix It
According to the Goldman Sachs Retirement Survey & Insights Report 2025, many Americans are struggling to save as basic expenses rise faster than wages. Here’s what the data means for your 401(k) and what you can do right now to improve your retirement outlook.
Why Is Saving for Retirement Getting Harder?
If saving for retirement feels tougher today, it’s not your imagination.
The Goldman Sachs Retirement Survey & Insights Report 2025 shows that the price of many basic needs families rely on has gone up.[1]
According to the data, basic expenses like home ownership, rent, healthcare, and childcare have all risen much faster than income.
This leaves many workers with less money left over to put into their 401(k).
In fact, more than 65% of workers say these costs make it hard to save for retirement.
Goldman Sachs calls this the Financial Vortex – a swirl of competing bills that pull your money in every direction.[1]
And this vortex isn’t just hitting younger workers or lower-income households.
It’s affecting people across generations, from Gen Z to Gen X to Baby Boomers.
What this means for your 401(k): When essentials take up more of your paycheck, it becomes harder to make steady progress toward your retirement goals.
But we believe understanding the challenge is the first step to fixing it.
Are Americans Really on Track for Retirement?
The Goldman Sachs report also reveals many people feel confident about their retirement savings…
But the numbers tell a very different story.
According to the survey, 68% of workers say they’re ahead or on track with their retirement goals.
They feel good about where they stand.
But when asked another question, Do you think you will outlive your savings?, 58% said yes.
That means more than half believe their money won’t last through retirement.
That’s a big gap between confidence and reality.
The report shows that 70% of workers feel some level of stress when managing their retirement savings.[1]
What this means for your 401(k): Feeling confident is great, but confidence alone won’t fund your retirement.
What matters is having a clear plan, checking your progress often, and making changes when needed.
The good news? Taking even small steps to improve your 401(k) strategy can help close this gap.
Who Struggles the Most to Save for Retirement?
The Goldman Sachs report makes one thing very clear: It’s not just one group of people struggling to save.
The pressure is hitting people across ages and income levels.
According to the survey, about 40% of workers live paycheck to paycheck.
And among those struggling, 74% say competing expenses – like credit card debt, student loans, family support, and other financial hardships – stop them from saving for retirement.
But here’s the surprising part…
Even higher earners – people making $300,000 or more a year – say they sometimes live paycheck to paycheck due to lifestyle creep.[1]
What this means for your 401(k): You’re not alone if you feel stretched. Saving for retirement is harder today, even for people with good incomes.
The key is to stay consistent with your 401(k) contributions and get help making the most of every dollar you put in.
How Do Life Events Disrupt 401(k) Savings?
The Goldman Sachs report shows that major life events can seriously disrupt retirement saving.
In the last 24 months:
- 66% of Gen Z and 59% of Millennials experienced a major life event.
- About 70% of younger workers said these events caused them to pause their 401(k) contributions, take out a loan, or delay retirement.
The report also shows that when people experience multiple life disruptions, their retirement savings can drop by 40% or more over time.[1]
What this means for your 401(k): Life will always be “in the way.” The key is not to give up on your retirement savings. Even small, steady contributions during tough seasons can help keep your savings on track.
What Steps Can Help You Improve Your 401(k)?
The Goldman Sachs report doesn’t just show the challenges savers face, it also highlights what really works to improve retirement results.
And the best part?
You can take action on each of these findings right now.
Below are the 4 most important factors that can boost long-term retirement success, plus simple steps you can use to strengthen your 401(k) today.
#1 Having Access to a 401(k) Plan Boosts Savings
Workers who have access to a 401(k) plan, and use it, have a 29% higher savings-to-income ratio than those who don’t.[1]
What you can do: Make sure you’re contributing enough to your employer’s plan, especially if they offer a match. Even raising your contribution by 1% can make a big difference over time.
#2 Personalized Retirement Advice Drives Better Results
People who follow a personalized plan – not a generic target-date strategy – end up with 15% to 27% higher retirement savings depending on whether they’re working or retired.[1]
What you can do: Get help creating a personalized 401(k) strategy. This may include professional rebalancing, allocation updates, and planning that reflects your real life…not a one-size-fits-all formula.
See how 401(k) Maneuver works to help optimize your 401(k) savings.
#3 Better Investment Choices Improve Long-Term Outcomes
According to the Goldman Sachs report, Improving returns by just 0.5% a year can raise your savings by 14% by age 65.
The report shows that small, steady improvements in how your money is invested matter more than many people realize.[1]
What you can do: Check your 401(k) investment mix regularly. Rebalance when the market drifts, and make sure your allocation fits your risk level and time horizon.
Our goal is to increase your account performance over time, manage downside risk to minimize losses, and reduce fees that are hurting your retirement account performance.
With 401(k) Maneuver, you can go about your life doing what you love with confidence, knowing we are handling the changes for you.
#4 Financial Grit Has a Big Impact on Savings Growth
According to the Goldman Sachs report, people who stick with their plan through good times and tough times end up with 49% more saved than those with low financial grit.[1]
What you can do: Stay consistent. Avoid pausing your contributions unless absolutely necessary. Even small, steady deposits can help protect your long-term goals.
Key Takeaways
- Basic costs are rising faster than wages, making it harder for workers to save for retirement.
- 58% of workers expect to outlive their savings, even though many say they’re on track.
- 40% of workers live paycheck to paycheck, and 74% of them say competing expenses limit their ability to save for retirement.
- Major life events can reduce retirement balances by over 40% when they happen repeatedly over time.
- Personalized planning, better returns, and strong financial habits can boost long-term savings by 14% to 49%, depending on the strategy.
Sources
[1] Goldman Sachs Asset Management. Retirement Survey & Insights Report 2025. Released 2025.
https://am.gs.com/cms-assets/gsam-app/documents/insights/en/2025/am-retirement-survey-102025.pdf
