A new survey shows younger Americans face mounting financial pressure, with many unable to save for retirement.
According to Goldman Sachs’ “Retirement Survey & Insights Report 2025,” 42% of Gen Z and millennial workers said they are living paycheck to paycheck. The report, based on a July 2025 survey of 5,102 individuals across generations, found that 58% of respondents expect to outlive their savings.
“The cost of basic needs has increased dramatically since 2000, outpacing by far the median wage growth,” Goldman Sachs explained. “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.”
The data highlighted sharp generational differences. Baby boomers reported the lowest rate of living paycheck to paycheck at 18%. Millennials topped the list at 45%, followed by Gen X at 41% and Gen Z at 39%. Taken together, Gen Z and millennials showed a combined 42% rate.
Living paycheck to paycheck limits the ability to save for retirement or major life events such as buying a home or raising children, Goldman Sachs said. Among those who reported struggling, 87% cited high monthly expenses as the main obstacle to saving.
Concerns about retirement savings have been growing. Last summer, Audacy reported on research showing retirement had become a “luxury” fewer Americans can afford.
Despite the pressures, Goldman Sachs noted younger workers may be faring better than expected. The report said Gen Z and millennials are “demonstrating solid progress relative to their benchmarks” compared to Gen X and working baby boomers. Analysts suggested Gen X may have fallen behind since they were the first generation to “navigate a retirement system largely without traditional pensions.”
The findings underscore the widening financial gap many younger Americans face as they balance rising living costs with long-term savings goals.