A Bigger Paycheque Should Mean More Savings: Goldman Sachs Reveals Why High-Income Earners Still Struggle

More than one-third of US workers surveyed who earned over $300,000 (£225,000) a year reported living paycheque to paycheque, according to Goldman Sachs Asset Management's 2026 retirement survey.

The proportion was 36% among respondents in that income group, compared with 23% among those earning between $100,000 (£75,000) and $300,000 (£225,000) and 42% among those earning less than $100,000 (£75,000). The findings suggest that higher earnings do not necessarily translate into a greater capacity to save.

The survey also found that 76% of respondents earning over $300,000 had delayed a major financial goal. The figure was 54% among those earning between $100,000 and $300,000 and 69% among respondents earning less than $100,000.

The survey also found that 76% of respondents earning over $300,000 (£225,000) had delayed a major financial goal. The figure was 54% among those earning between $100,000 (£75,000) and $300,000 (£225,000) and 69% among respondents earning less than $100,000 (£75,000).

Reported goals included retirement saving, buying a home, paying down debt and building emergency savings. These figures reflect respondents' descriptions of their circumstances rather than an audit of their finances, and do not establish that they had no cash reserves or were unable to pay their current bills.

Housing and Everyday Costs Put Pressure on Savings

Housing costs and day-to-day living expenses were each cited by 31% of respondents as obstacles to retirement saving, while 27% identified debt payments.

These figures describe barriers reported by workers across the survey. They do not isolate the spending patterns or financial commitments of respondents earning more than $300,000 (£225,000), so they cannot establish why that income group reported difficulty saving.

The income figures show a U-shaped pattern in reported financial strain: the share living paycheque to paycheque was highest among those earning less than $100,000, fell among those earning $100,000 to $300,000, and rose again among those earning more than $300,000.

Additional work was also common. About 61% of workers surveyed reported taking on work outside their primary job, and 71% of those doing so cited financial need. These findings cover workers overall, rather than high-income respondents alone.

'While workers may look financially stable externally, underneath, they're working more, delaying major goals, and supplementing their income,' said Greg Wilson, Head of Retirement and Co-Head of Americas Third-Party Wealth at Goldman Sachs Asset Management.

The income figures show a U-shaped pattern in reported financial strain: the proportion living paycheque to paycheque was highest among respondents earning less than $100,000 (£75,000), lower among those earning between $100,000 (£75,000) and $300,000 (£225,000), and higher again among those earning over $300,000 (£225,000). This pattern does not mean the groups faced identical pressures.

Retirement Saving Momentum Has Slowed

Goldman Sachs Asset Management released its report, The New Economics of Retirement: Making Every Dollar Saved Work Harder, on 30 September 2026.

The report was based on a survey of 5,106 Americans conducted in July 2026, comprising 3,612 working individuals across generations and 1,494 retirees aged 45 to 75. Behavioural research firm Escalent helped develop the questions and analyse respondents' characteristics.

The share of respondents who said they had increased their retirement savings fell from 55% in the previous survey to 39%, a drop of 16 percentage points.

Meanwhile, 58% of retirement savers said they were on track or ahead of schedule, down from 68% a year earlier.

The comparisons indicate weaker reported saving momentum and confidence across the two surveys. They do not measure changes in each respondent's retirement balance or establish that the same individuals became less financially secure.

Separate UK Research Highlights Financial Vulnerability

Research from Royal London, a UK mutual life, pensions and investment company, found that the average UK adult scored 33% on its 2026 Financial Resilience Barometer, placing the population in the 'Economically Exposed' category.

The 33% figure represents an average financial resilience score rather than the share of adults in that category. Separately, the report found that 35% of employees were financially fragile despite being employed.

Royal London's findings were based on an online YouGov survey of 4,045 adults conducted between 4 and 19 March 2026. The results were weighted to be representative of adults in Great Britain aged 18 and over.

Its resilience measures differ from Goldman Sachs' questions about saving and financial goals, so the percentages are not directly comparable.

UK tax rules also illustrate why gross earnings and take-home income differ. In England, Wales and Northern Ireland, the standard £12,570 personal allowance is reduced by £1 for every £2 of adjusted net income above £100,000 and reaches zero at £125,140.

For income otherwise taxed at 40%, withdrawing the personal allowance produces an effective marginal income-tax rate of 60% across this band, before National Insurance. Adjusted net income accounts for certain reliefs, including eligible pension contributions and Gift Aid donations, so it may differ from gross salary.