Some 40% Of People Earning More Than $300,000 Are Living Paycheck To Paycheck, New Goldman Sachs Study Says

Core Insights - A significant 40% of workers earning over $300,000 annually report living paycheck to paycheck, indicating financial stress is prevalent even among high earners [1][6] - The survey reveals that financial strain affects various income brackets, not just low-income workers, due to factors like lifestyle inflation and rising living costs [2][3] Financial Stress Across Income Levels - Approximately 40% of all working respondents live paycheck to paycheck, with another 40% making only moderate financial progress each year, which poses challenges for retirement savings [3] - Among high earners, 41% of those earning between $300,001 and $500,000 report living paycheck to paycheck, while 40% in the $500,001-and-up bracket also face similar financial pressures [6][7] Impact on Retirement Savings - About 74% of individuals living paycheck to paycheck cite competing financial priorities, such as student loans and healthcare costs, as barriers to saving for retirement [4] - Those living paycheck to paycheck have the lowest retirement savings-to-income ratios, making it difficult to contribute to retirement savings when discretionary income is minimal [5] Major Life Events and Financial Decisions - Major life events, such as having children or purchasing a home, often lead individuals to pause retirement contributions or take loans from their retirement accounts, affecting long-term financial planning [7] - A notable percentage of younger generations, including 66% of Gen Z and 59% of Millennials, have experienced at least one significant life event in the past two years, impacting their financial stability [7]