More Americans Pull Back on Retirement Saving to Cover Today's Costs, Goldman Sachs Report Finds

Workers are slowing retirement savings, cutting 401(k) contributions, and taking on second jobs to cover rising day-to-day living costs, according to a new Goldman Sachs Asset Management retirement report.
More than 1 in 3 full-time workers, and nearly half of Gen Xers, say their job only covers current expenses or is not enough to put them on solid financial footing. "Retirement savings momentum appears to be stalling, and rising costs are broadly eroding savers' ability to save," said Chris Ceder, a senior retirement strategist at Goldman Sachs Asset Management, in comments to Yahoo Finance.
Key findings from the report:
- More than 60% of workers have side gigs or contract work, mostly out of financial need. Roughly 8 in 10 Gen Z and millennial workers started a side hustle in the past year because they felt they had to in order to pay their bills.
- The share of people who increased their retirement contributions fell to 39% in 2026 from 55% in 2025, the largest single-year decline in six years. The share who reduced their savings rose to 14% from 8%.
- Fewer people across all age groups said their retirement savings were on track, and most expect to work longer than planned.
- Close to half of Americans retire before age 65 due to health issues, a layoff, or caring for aging relatives. Roughly half of retirees in the survey left the workforce one to five years sooner than planned.
- More than 7 in 10 people with a retirement plan say their savings are on track or better, compared with 3 in 10 without a personalized plan. Nearly half of those with a plan increased their savings in the last year, versus about a quarter without one.
Ceder said housing costs, living expenses, and debt payments arrive every month and are paid first. "Retirement is often paid last," he said.