Many high earners live paycheck to paycheck, GS survey finds

Goldman Sachs Asset Management released a survey on Sept. 30 showing workers across income levels are struggling to save for retirement. The survey polled 5,106 people aged 45 to 75, including 3,612 workers and 1,494 retirees.

Thirty-seven percent of respondents earning more than $500,000 reported living paycheck to paycheck. Thirty-four percent of those earning $300,000–$500,000 reported the same, as did 25% of respondents in the $200,000–$300,000 bracket and 22% of those earning $100,000–$200,000.

About a third of all respondents said they will probably look for another job because of concerns about financial security.

Christopher Ceder, senior retirement strategies at Goldman Sachs Asset Management, told a briefing that plan providers and advisers are expanding services within 401(k) plans, adding digital tools and advice and segmenting offerings to meet different participant needs.

Wyatt Lee, head of target date strategies at T. Rowe Price’s Global Multi-Asset Division, said demand for annuities has grown and that advisers are often better positioned to discuss annuitization than individuals acting alone.

The survey found many workers use artificial intelligence for research but still prefer human guidance for major life events, emotional reassurance, tax planning, retirement income, guaranteed income and managing market downturns.

Leah Schwarz, managing director of Perspective Wealth at Steward Partners, described clients who have taken second jobs to help family members or who skip entertainment and leisure spending because costs are high. She advises preserving principal and trying to live off dividends and investment income when possible to keep a cushion for emergencies. “There’s a lot of people that are nervous about retirement, whether they’re in it or whether they’re still working and preparing for it,” she said.

The briefing also noted retirement timeframes are lengthening in some cases, driven by longer life expectancies and changes in planned retirement dates. Advisers and plan sponsors are testing a broader mix of services, from digital advice to discussions about guaranteed income products, to serve participants across income levels.