Younger investors are positioning retirement plans

As investors worry about their retirement, recent data shows how younger Americans are starting to plan ahead.

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

Younger generations are also taking initiative when it comes to their personal savings. Goldman found that 69% of millennials say their savings are ahead of schedule or on target. And 68% of Gen Z said they feel the same.

Things don’t seem to be going so well with the older generations. Goldman reports that 45% of Gen Xers and about half of working baby boomers feel they are behind schedule on retirement savings.

“The challenges posed by the financial vortex may change and increase in difficulty as we age,” said Greg Wilson, head of retirement at Goldman Sachs Asset Management. “To keep our retirement savings on track, we must anticipate these challenges. (We must) include them in carefully and thoughtfully designed financial plans.”

Long-term investment options

There are numerous ETFs from which investors can choose to strengthen their retirement savings for the long term. Younger investors looking for long-term growth opportunities may choose a more established fund that can limit potential risk.

It would be such a fund Goldman Sachs MarketBeta US Stocks ETF (GUS A-). It provides diversified exposure to the broad stock market. It has a low net expense ratio of 0.07%.

The fund aims to achieve similar investment results as the Solactive GBS US large and mid-cap index. Specifically, the index measures the performance of the mid- and large-cap segment, which accounts for the largest 85% of the US free float market capitalization.

With a broad, diversified equity portfolio, GUS can be used as a core portfolio position for investors looking to grow their retirement savings. This core position can also deliver solid annual returns. Goldman reported this NAV return for GUS increased by 27.63% in 2023.

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