A new study by Goldman Sachs reveals that in 2026, individuals earning less than $50,000 or more than $500,000 annually are most likely to live paycheck to paycheck. Among 5,106 respondents, over 60% of those earning under $50,000 and about 38% of those earning above $500,000 reported living from one paycheck to the next, highlighting a pronounced financial strain at both ends of the income spectrum, according to fortune.com.
The research, titled "New Economics of Retirement," also found that around 80% of respondents earning more than $500,000 delayed financial goals, closely followed by 79% of those earning less than $50,000. Both groups were the most likely to pay only the minimum or less on credit cards, at approximately 45%. Goldman Sachs attributed the financial stress for lower-income individuals mainly to inflation on everyday goods and housing, while higher earners faced challenges such as caregiving and housing for family members, fortune.com reported.
This K-shaped financial divide underscores the complex economic pressures across income levels. While middle earners between $100,000 and $500,000 dealt with family-related expenses, the extremes experienced distinct burdens. The study suggests that higher-income individuals often act as financial anchors for extended families, which may contribute to their paycheck-to-paycheck status despite high earnings. These findings provide insight into the broader challenges facing American households today, according to fortune.com.
Goldman Sachs' spokesman emphasized the dual pressures on both ends of the income scale, noting the significant impact on long-term savings and financial planning. The study's data was collected from 5,106 respondents and published in 2026, offering a detailed snapshot of current economic realities, according to fortune.com.