A growing number of Americans, particularly those in the Gen Z and millennial generations, are grappling with financial strain, with 42% reporting they live paycheck to paycheck, according to a new Goldman Sachs report.
The “Retirement Survey & Insights Report 2025,” based on responses from 5,102 individuals surveyed in July 2025, revealed that 58% of all respondents fear they will outlive their savings.
The survey highlighted stark generational differences.
Millennials, born between 1980 and the mid-1990s, were the most likely to live paycheck to paycheck at 45%, followed by Gen X at 41% and Gen Z, born between the late 1990s and early 2010s, at 39%. In contrast, only 18% of baby boomers reported similar financial constraints. The combined rate for Gen Z and millennials stood at 42%.
“The cost of basic needs has increased dramatically since 2000, outpacing by far the median wage growth,” Goldman Sachs stated. “As the cost of expenses such as housing, childcare, education, and healthcare has grown, it has narrowed the gap between income and expenses, leaving little to save for retirement.”
According to the report, the average cost of home ownership as a percentage of income has increased from 33% in 2020 to 51% in 2025. The cost of renting has also increased, rising from 21% to 29%, while the cost of healthcare has risen from 10% to 16% of income. The average cost of childcare rose from 12% to 18% of income.
For those living paycheck to paycheck, 87% cited high monthly expenses as a barrier to saving for major life events, such as buying a home or starting a family. The report noted that Gen Z and millennials are making “solid progress” in savings compared to Gen X and working baby boomers, but face unique challenges.
Gen X, the first generation to rely heavily on retirement systems without traditional pensions, has struggled to keep pace. Younger generations, meanwhile, are caught in a “Financial Vortex” of rising housing, healthcare, debt, and caregiving costs.
A separate ADP Research report indicated that private employers cut 32,000 jobs last month, signaling cautious hiring trends. A new jobs report was expected this week, with lawmakers urging its release despite the ongoing government shutdown.
The Goldman Sachs findings echo earlier research reported by Audacy last summer, which described retirement as an increasingly unaffordable “luxury” for many Americans.