Even six-figure earners are living paycheck to paycheck as prices soar — why a high income doesn’t cut it anymore

Core Insights - A significant portion of high earners in the U.S. are living paycheck to paycheck, with 25% of those earning over $100,000 annually reporting this situation, and the percentage rising to 41% for those earning between $300,000 and $500,000, and 40% for those making over $500,000 [2][3] Financial Strain on High Earners - The Goldman Sachs report highlights that elevated expenses, debt burdens, and lifestyle inflation are eroding savings capacity across various income levels, indicating that even higher earners are not immune to financial stress [3][4] - The report warns of a "financial vortex" where essential costs such as housing, child care, and health care consume an increasing share of take-home pay, predicting that by 2033, 55% of U.S. workers will be living paycheck to paycheck [4] Social Comparison and Spending Behavior - High earners are influenced by "social comparison," leading to pressure to maintain lifestyles that reflect success, which does not diminish with increased income but rather scales up [5] - The availability of easy credit and buy-now-pay-later options contributes to a lack of awareness regarding spending, making it easier for high earners to accumulate invisible debt [6] Impact on Retirement Savings - The financial pressures faced by high earners may result in lower retirement savings contributions, increased likelihood of taking loans against retirement funds, and delayed retirement timelines, affecting individuals across all income levels [7]