Americans across every generation are falling behind on their retirement plans as rising living costs compete for money that might otherwise go toward long-term savings. Just 58 percent of retirement savers said they were on track or ahead of schedule in 2026, down from 68 percent a year earlier, according to Goldman Sachs Asset Management's latest Retirement Survey & Insights Report. The share of Americans who increased their retirement savings also fell sharply to 39 percent from 55 percent, while 14 percent said they had reduced the amount they were saving.
The results come as rising costs for everyday essentials continue to strain the budgets of Americans nationwide, having a knock-on effect on how much they can save for later in life. "Our survey reported the largest single-year decline in the percent of people who increased their retirement savings in six years potentially highlighting a momentum shift," Chris Ceder, senior retirement strategist at Goldman Sachs Asset Management, said. "Savers are taking less action, and the actions they are taking are more defensive in nature, suggesting that they may have concerns over persistent inflation and market volatility." The deterioration was seen across every generation surveyed.
Among Gen Z respondents, the proportion who said their retirement savings were on track or better fell from 75 percent in 2025 to 66 percent this year. Millennials recorded an even steeper decline, from 74 percent to 61 percent. Gen X, next in line to retire, had the lowest overall level of retirement readiness, with the share who considered themselves on track dropping from 58 percent to 49 percent.
Among baby boomers, it fell from 69 percent to 60 percent. The study, which surveyed 5,106 Americans in July, found that immediate household expenses were increasingly competing with retirement saving. Housing costs and day-to-day living expenses were each cited by 31 percent of workers as obstacles to saving for later life, while 27 percent said debt payments are hindering their ability to save their dollars.
The pressure varied by age: 37 percent of Gen Z and 36 percent of millennials identified housing as their biggest financial obstacle, compared with 21 percent of Boomers. Older workers were more likely to highlight costly everyday expenses. Some 37 percent of Gen X respondents and 33 percent of boomers said increasing daily costs were their biggest obstacle.
Healthcare costs were also a significant issue across generations, cited by 25 percent of millennials, 23 percent of Gen Z, 23 percent of boomers and 20 percent of Gen X. It is no secret that rising prices for essentials are biting at the wallets of everyday Americans. Consumer prices were 3.4 percent higher in August than a year earlier, according to the Bureau of Labor Statistics (BLS), with prices also rising 0.4 percent between July and August alone.
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