High income does not necessarily translate into financial security. In Goldman Sachs Asset Management’s 2026 Retirement Survey & Insights report, 36.6% of respondents from households earning more than $500,000 a year said they rely mainly on monthly paychecks to cover expenses and struggle to make progress toward long-term goals. That was the second-highest share among six income groups, behind only households earning less than $50,000, at 60.8%.
Housing, healthcare, education, caregiving and everyday costs continue to compete with savings for household income. The report’s findings point to a broader challenge than simply whether people save for retirement: how they allocate income among competing financial needs.
Prices are outpacing the cushion from pay increases
U.S. consumer prices have risen about 22% cumulatively over the past five years. Bureau of Labor Statistics data show gasoline prices were up 27.4% year over year in August 2026. Food, healthcare, rent and mortgage payments have also weighed on household budgets.
The U.S. Census Bureau put median household income at a record $87,460 in 2025, but higher incomes have not fully offset rising living costs. Unemployment was 4.2% in September 2026, while consumer spending rose by $190.8 billion in August. Those figures suggest continued resilience in employment and consumption, even as Goldman Sachs finds that many households remain under pressure to prepare for retirement.
The share of employed respondents who said they were increasing retirement savings fell to 39% in 2026 from 55% in 2025. The 16-percentage-point drop was the largest single-year decline since 2020. Younger workers are also feeling the strain, with some taking on more work to meet day-to-day expenses.
Financial strain follows a U-shaped pattern across incomes
The survey collected responses from 5,106 people: 3,612 employed respondents and 1,494 retirees aged 45 to 75. Participants chose among three descriptions of their financial situation: relying mainly on paychecks and struggling to advance long-term goals; making moderate progress; or making significant progress toward both short- and long-term goals.
Goldman Sachs grouped households into six annual income brackets: below $50,000; $50,000 to $100,000; $100,000 to $200,000; $200,000 to $300,000; $300,000 to $500,000; and above $500,000. The share relying mainly on paychecks declined from 60.8% in the lowest-income bracket to 22.2% among households earning $100,000 to $200,000, then climbed to 34.2% for those earning $300,000 to $500,000 and 36.6% for those above $500,000.
Households earning $200,000 to $300,000 were most likely to report strong progress: 42.2% said they were making substantial headway on both short- and long-term goals. The results show that financial strain does not necessarily fall in a straight line as income rises.
Credit card payments show a similar pattern. Among households earning more than $500,000, 46% said they typically paid only the minimum due on their credit card bills, or less. That was close to the 47% share among households earning below $50,000 and well above the 30% recorded for the $200,000-to-$300,000 group.
The highest-income respondents were also the most likely to have postponed major financial plans. Among those earning above $500,000, 80% said they had put off a major financial goal despite remaining employed; 45% specifically cited delaying retirement savings. Both figures were the highest across the income brackets.
Higher fixed costs weigh on affluent households
Goldman Sachs said financial pressure tends to look different at either end of the income scale. Lower-income households are more likely to be focused on basic living expenses, while higher-income households may face more complex financial arrangements, higher expectations and larger fixed commitments. Bigger mortgage payments, more expensive cars, private-school tuition and frequent travel can quickly absorb additional cash flow as earnings rise.
These households, sometimes described as high-income but not yet wealthy, may also shoulder substantial family responsibilities. A Goldman Sachs spokesperson said higher earners can be the main financial support for an extended family, helping parents, children or other relatives.
“Living paycheck to paycheck” can therefore mean different things across income groups. For a lower-income household, it may reflect difficulty paying essential bills; for a higher-income household, spending and lifestyle expectations may be growing faster than income. The survey is based on respondents’ own assessments and does not directly measure their ability to meet obligations on the household balance sheet.
Still, 87% of respondents from households earning more than $500,000 said their jobs offered a stable path to long-term financial security. The findings show that higher earnings can expand financial choices, but do not automatically resolve the competing demands of housing, family support, lifestyle spending and retirement savings.