In 2026, Goldman Sachs found that people earning under $50,000 and those earning more than $500,000 are the groups most likely to be living paycheck to paycheck.
The bank’s “New Economics of Retirement” study surveyed 5,106 respondents and identified a K-shaped divide affecting long-term savings. Just over 60% of respondents with annual incomes below $50,000 said they were living from one paycheck to the next. Among those earning $500,000 and up, about 38% reported the same financial pressure.
Other personal finance measures followed a similar pattern. Respondents in the top income bracket—those earning more than $500,000—were the most likely to report delayed financial goals (80%), with the under-$50,000 cohort close behind at roughly 79%.
Both the lowest and highest income groups were also most likely to make only minimum payments (or less) on credit cards, at about 45% of respondents in each cohort.
Goldman Sachs told Fortune that lower-income respondents were chiefly strained by inflation affecting everyday goods and housing, while people in the $100,000 to $500,000 range faced pressures such as caregiving and housing needs for family members.
“Higher-income individuals may be the financial anchors for their extended families,” a Goldman Sachs spokesman told Fortune. “The data suggests that the ‘sandwich generation’ squeeze can be a key factor redirecting financial resources from long-term financial goals.”
The study offered further detail on those strains: 28% of respondents earning more than $500,000 cited family caregiving or support as one of the greatest barriers to their retirement savings, and nearly 27% in that top cohort said medical expenses were a major drag on savings.
Among respondents earning less than $50,000, debt payments and housing were obstacles for retirement savings (each cited by 36.8%), while the biggest barrier—day-to-day living expenses—was named by 42.5%.
Lifestyle creep
Goldman Sachs highlighted lifestyle creep as another factor for high earners: as incomes rise, luxuries and discretionary spending can quickly become perceived necessities. The bank noted that if rising household costs require budget adjustments, implementing those changes can be difficult for families that rely on key financial contributors.
At a media roundtable before the report’s release, Jonathan Barber, head of compensation and benefits solutions at Goldman Sachs Ayco, said: “The reason they’re not contributing potentially to the retirement plan is not because of its indifference. It’s certain expenses are always going to come first … it’s living expenses, housing costs, things like that.”
Barber added that employers can help by offering tools and benefits that build an initial financial foundation—for example, addressing debt and cash flow, offering personalized benefits, and providing financial counseling. “What are some of those tools that a company can offer? What are some of those benefits that can help establish that initial foundation that gives the employee the confidence to contribute to the retirement plan? How do we help with those initial issues like debt, cash flow, and how do we put in some type of personalization into these benefits? And overall, how do we interconnect them?”
“And certainly we’ll talk about financial counseling. That’s a big part of this.”
This story originally appeared on Fortune.com.
Source: fortune.com
