How Goldman Sachs Says You Can Supercharge Your Retirement Savings

Goldman Sachs identifies a straightforward, high-impact approach to growing retirement balances: make saving automatic and capture every bit of employer-provided value. The firm highlights two behavioral levers — auto-enrollment and automatic escalation — that increase contribution rates with minimal ongoing effort. For most workers, the first priority is contributing enough to receive the full employer match; that matched portion is essentially an immediate, risk-free return on savings.

Beyond securing the match, Goldman Sachs advises prioritizing tax-advantaged accounts. Traditional and Roth retirement plans each provide benefits depending on current tax brackets and future expectations; Roth contributions can be especially attractive if you expect higher taxes in retirement because withdrawals are tax-free. Workers age 50 and older should also consider catch-up contributions to accelerate savings in the final pre-retirement years.

Investment selection matters as well. Diversifying across equities, fixed income and low-cost index funds helps manage risk while preserving return potential. Target-date funds can simplify decision-making by shifting allocations as retirement approaches, and regular rebalancing keeps the portfolio aligned with your risk tolerance. Fees are another critical factor: expense ratios, advisory charges and transaction costs compound over decades, so choosing lower-cost vehicles can materially improve net outcomes.

Practical steps to implement these recommendations include enabling payroll-driven contribution increases or auto-escalation, directing raises or bonuses into retirement accounts, consolidating old 401(k)s to reduce fees and complexity, and maintaining an emergency fund so long-term savings aren’t tapped for short-term needs. Paying down high-interest consumer debt first can free up cash flow for consistent retirement contributions.

Goldman Sachs’ core message is behavioral and structural: design systems that make saving the default, minimize costs, and align investments with your time horizon. For the majority of savers, incremental automatic increases to contributions and fully leveraging employer matches will produce the largest improvements in retirement readiness over time.