Rising household expenses are fundamentally altering the financial landscape for American retirement savers, according to a new study from Goldman Sachs Asset Management. The report, titled "The New Economics of Retirement, Making Every Dollar Saved Work Harder," surveyed 5,106 individuals—3,612 working and 1,494 retired—and found that costs for housing, healthcare, education, caregiving, and daily living are consuming a growing share of household budgets, leaving less for retirement.
Christopher Ceder, senior retirement strategist at Goldman Sachs Asset Management, said during a webinar that these pressures are "changing the economics we see retirement savers face." The study highlights a stark generational divide: 66% of Gen Z, millennials, and Gen X expect to delay retirement due to competing financial priorities. This sentiment is echoed in other industry research, such as a SoFi survey that found similar doubts among younger workers.
The survey also reveals a decline in confidence about retirement readiness. Only 58% of working respondents said they were on track or better with their retirement savings, down from 68% in 2025. Savings momentum has stalled as well: 39% of respondents increased their savings in 2026, a sharp drop from 55% in 2025, while 14% decreased savings, up from 8%.
Interestingly, financial strain is not confined to lower-income households. The study found that 57% of respondents earning under $100,000 and 65% of those earning over $300,000 reported difficulty focusing at work due to financial stress. Similarly, 69% of those under $100,000 and 76% of those over $300,000 said they have delayed financial goals. Ceder noted that while the nature of strain differs by income level, "there certainly are some parallels to take note of."
This broad-based anxiety is consistent with other recent data. For instance, a Principal Financial study found that 69% of U.S. employers report workers postponing retirement amid economic uncertainty, with inflation as the primary driver. Additionally, the U.S. slipped to 24th in the Natixis retirement index, reflecting the impact of debt and inflation on retirement security.
Ceder argued that the solution is not simply to encourage more saving. "It's going to require solutions that help every dollar saved work harder, last longer, and hold up under the pressure that we know that life brings," he said. This may involve more sophisticated investment strategies, guaranteed income products, or employer-sponsored financial wellness programs.
For advisors, the findings underscore the need to address clients' holistic financial picture, including cash-flow management and debt reduction, rather than focusing solely on portfolio returns. The growth in retirement assets may mask the underlying fragility of many households' savings plans.
As the economic environment continues to evolve, the retirement industry may need to innovate. Fintech platforms are already scaling to serve more employer plans, but the challenge remains to design solutions that can withstand the pressures of everyday life.
