Goldman: Younger Investors Positioning Plans for Retirement

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With retirement concerns ever looming for investors, recent data illuminates how younger Americans are beginning to plan ahead.

Goldman Sachs Asset Management’s annual retirement report shows millennials and Gen Z are increasingly taking proactive steps to set up retirement plans. The report adds that 67% of millennials and 60% of Gen Z have a personalized plan for retirement.

Younger generations are also taking initiative over their personal savings. Goldman found that 69% of millennials report their savings are ahead of schedule or on track. And 68% of Gen Z said they felt the same.

Older generations are seemingly not faring as well. Goldman reports that 45% of Gen Xers and roughly half of working baby boomers feel behind schedule with retirement savings.

“The challenges brought by the financial vortex can shift and grow in difficulty as we age,” noted Greg Wilson, head of retirement at Goldman Sachs Asset Management. “To keep our retirement savings on course, we must anticipate these challenges. [We have to] factor them into carefully and thoughtfully designed financial plans.”

Long-Term Investment Options

There are myriad ETFs investors can choose from to bolster retirement savings in the long term. Younger investors seeking long-term growth opportunities may opt for a more established fund that can mitigate potential risk.

One such fund may be the Goldman Sachs MarketBeta U.S. Equity ETF (GSUS). It provides diversified exposure to the broad equity market. It sports a low net expense ratio of 0.07%.

The fund aims to provide similar investment results to the Solactive GBS United States Large & Mid Cap Index. The index in particular measured the performance of the mid- and large-cap segment accounting for the largest 85% of the free-float market cap in the U.S.

With a wide, diversified equity portfolio, GSUS can be used as a core portfolio position for investors seeking to bulk up retirement savings. This core position can also lock in solid annual returns. Goldman reported that NAV return for GSUS was up 27.63% in 2023.

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