Goldman Sachs: Paycheck‑to‑Paycheck Crisis Threatens Retirement
A new Goldman Sachs analysis, reported by CBS News, finds a rising share of U.S. workers are living paycheck to paycheck, undermining retirement saving: the survey of roughly 3,600 workers and 1,500 retirees reports 42% of younger working Americans have no spare savings after covering basic expenses and projects the share of workers in this precarious position could exceed 50% by 2033. The report cites sharp increases in housing and health‑care burdens and warns that many near‑retirement Americans lack sufficient savings as employer pensions give way to 401(k) plans.
Economy
Finance
🔍 Key Facts
- 42% of younger working Americans (Gen Z, millennials, Gen X) report no spare savings after basic expenses, per Goldman Sachs survey
- Survey size: about 3,600 workers and 1,500 retirees; Goldman projects paycheck‑to‑paycheck share could climb to well over half by 2033
- Goldman analysis: homeownership now consumes 51% of after‑tax income (vs. 33% in 2000); health care accounts for 16% of after‑tax earnings (vs. 10% ~25 years ago)