Let  
 $X\left( n \right)$ , for  
 $n\,\in \,\mathbb{N}$ , be the set of all subsets of a metric space  
 $\left( x,\,d \right)$  of cardinality at most  
 $n$ . The set  
 $X\left( n \right)$  equipped with the Hausdorff metric is called a finite subset space. In this paper we are concerned with the existence of Lipschitz retractions  
 $r:\,X\left( n \right)\,\to \,X\left( n\,-\,1 \right)$  for  
 $n\,\ge \,2$ . It is known that such retractions do not exist if  
 $X$  is the one-dimensional sphere. On the other hand, Kovalev has recently established their existence if  
 $X$  is a Hilbert space, and he also posed a question as to whether or not such Lipschitz retractions exist when  
 $X$  is a Hadamard space. In this paper we answer the question in the positive.