For 40% of Americans, the dreaded financial ‘rainy day’ is every day — how to find shelter from the ‘financial vortex’

Core Insights - A significant portion of Americans are struggling financially, with approximately 40% living paycheck to paycheck and unable to save for retirement [1][6] - Competing expenses such as debt repayment, housing costs, and unexpected expenses contribute to a "financial vortex" that hinders retirement savings [2] - Inflation and life events like career gaps or divorce exacerbate the challenges faced by workers in saving for retirement [2] Financial Challenges - 35% of Americans have less than $100 left after covering monthly obligations, indicating severe financial strain [2] - A recent survey shows that 58% of American workers feel they are behind on retirement savings [3] - Wages have not kept pace with inflation, with a decline of 0.02% in real wages from Q1 2020 to Q2 2025, further limiting financial flexibility [4] Employment and Savings - The weakening job market has led many to rely on credit cards for survival, resulting in high-interest debt [5] - As immediate financial priorities take precedence, retirement savings are often neglected [5] - The Goldman Sachs report predicts that the percentage of households living paycheck to paycheck without the ability to save for retirement will rise to 55% by 2033 [6]