Does the Old Retirement Math Still Work for Employees?
1 Source: Goldman Sachs Asset Management’s Retirement Survey & Insights Report 2025; Refer to the report for full disclosures. The survey was conducted by Goldman Sachs Asset Management and Qualtrics Experience Management between June 27, 2025–July 21, 2025. Views expressed are those of survey respondents. Findings are from 5,102 individuals surveyed in July 2025 and provide insights from a diverse set of perspectives, including (i) working individuals (3,588 working individuals across generations), and (ii) retired individuals (1,514 retired individuals ages 45-75). This material is provided for educational purposes only and should not be construed as investment advice or an offer or solicitation to buy or sell securities.
2 Goldman Sachs Ayco 2025 Benefits and Compensation Trends. Data based on 411 Goldman Sachs Ayco corporate partners as of December 2024.
3 An insurance product designed to provide a guaranteed stream of income in retirement.
4 Retail annuity payout is calculated by using major retail annuity providers’ offerings at May 2025 rates. The payout percentage of 7.1% is the average of the top 5 highest paying single premiums immediate annuity starting at age 65. This is also the average between male and female rates.
* Median Household Income (after-tax): 2000: Median household income is $42,148 and assume effective tax rate is 18%; 2025: Median household income is $83,730 and assume effective tax rate is 18%; Source; US Census Bureau Median Household Income, Goldman Sachs Asset Management.
Cost of Home Ownership: 2000: Median home price: $119,600, 8% mortgage rate, 20% down payment, Insurance estimate – $500, annual maintenance cost 1% of home value, taxes 1.1% of home value; 2025: Median home price: $410,800, 6.5% mortgage rate, 20% down payment, Insurance estimate – $1500, annual maintenance cost 1% of home value, taxes 1.1% of home value: Sources: Federal Reserve Bank of St. Louis, US Census Bureau, Goldman Sachs Asset Management.
Cost of Renting: 2000: Median gross rent: $602 monthly; 2025: Median gross rent: $1638 monthly: Source: US Census data, Goldman Sachs Asset Management.
Cost of Child Care (Center-based): 2000: Median cost center-based childcare: $4,000 annually; 2025: Median cost center-based childcare: $12,500 annually; Source: Child Care Aware, Goldman Sachs Asset Management.
Cost of Public College: 2000: Average tuition $3,510; average room and board $4,960. 2025: Average tuition $11,610; average room and board $13,300; Source: College Board, Goldman Sachs Asset Management.
Cost of Private College: 2000: Average tuition $16,332; average room and board $6,209. 2025: Average tuition $43,350; average room and board $15,250; Source: College Board, Goldman Sachs Asset Management.
Cost of Student Loan: 2000: Average federal loan balance $16,530; Interest rate assumption 6.9%, loan term assumption 10 years. 2025: Average federal loan balance $39,075; Interest rate assumption 6.4%, loan term assumption 10 years. Source: National Association of Colleges and Employers, Goldman Sachs Asset Management.
Cost of Healthcare: 2000: average employee paid healthcare premiums $1,715; estimated out of pocket expense $1,776 (assume three family members). 2025: average employee paid healthcare premiums $6,269; estimated out of pocket expense $4,542 (assumes three family members). Source: Kaiser Family Foundation, Goldman Sachs Asset Management.
Disclosures
Advisory services offered by Goldman Sachs Wealth Services, L.P. (the “Adviser”), a registered investment adviser, affiliate of Goldman Sachs & Co. LLC (“GS&Co.”), and a subsidiary of The Goldman Sachs Group, Inc., a worldwide, full-service investment banking, broker-dealer, asset management, and financial services organization. Goldman Sachs Ayco is a brand of Goldman Sachs Wealth Services, L.P. Brokerage services are offered through GS&Co. and Mercer Allied Company, L.P. (a limited purpose broker-dealer), both affiliates of the Adviser and members FINRA/SIPC.
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