Many workers say money runs out before the month does. A new survey finds 42% of younger employees—from Gen Z to Gen X—have nothing left to save after covering basic expenses, a sign of a growing financial vortex squeezing household budgets.
According to Goldman Sachs, three-quarters of those who can’t save say retirement savings are effectively out of reach. In 1997, 31% reported living paycheck to paycheck; today’s share is roughly a third higher. The report warns the figure could top half by 2033.
The pressure stems from faster-rising essentials. Housing costs have climbed from 33% of income in 2000 to 51% as of 2025. Healthcare rose from 10% to 16% over the same span. Goldman Sachs describes this compounding strain as a “financial vortex” that makes long-term planning difficult.
Anxiety is sharpest for Gen X (ages 45–60). In a separate poll by Natixis, nearly half said “a miracle” would be needed to retire. Many in this cohort entered the workforce as the 401(k) system spread, missed out on traditional pensions, and have faced decades of rising living costs.
Experts note that telling people to “just save more” misses the reality for households whose paychecks are already eaten by rent or mortgages, medical bills, and education costs. To narrow retirement gaps, Goldman Sachs points to earlier saving where possible, broader access to alternative investments (such as private equity or cryptocurrency), and use of employer-provided emergency-savings accounts.
BY HOONSIK WOO [woo.hoonsik@koreadaily.com]
