Young Americans are increasingly relying on income beyond their main jobs to cover everyday expenses, according to new Goldman Sachs research that points to growing pressure on retirement saving. The bank found that 80% of Gen Z workers and 77% of millennials surveyed had additional work outside their primary employment.
For many, Gen Z second jobs are less about discretionary spending than financial necessity. Among those surveyed, 76% of Gen Z and 73% of millennials said they would struggle to make ends meet without the extra income, highlighting how current household costs are competing directly with longer-term financial goals.
Extra Income Is Becoming a Necessity
The findings form part of Goldman Sachs’s latest retirement survey, which suggests financial confidence has weakened across age and income groups. Only 58% of respondents said they were on track to achieve their retirement goals, down from 68% a year earlier.
Savings behaviour has also deteriorated. Goldman Sachs Asset Management senior retirement strategist Chris Ceder said the proportion of respondents increasing their savings year over year fell from 55% to 39% in 2026. At the same time, more people reported reducing the amount they save.
The strain extends into the workplace. Some 69% of Gen Z respondents said worries about debt or household expenses made it difficult to concentrate at work. Among millennials, the figure was 67%.
Financial trade-offs are also affecting milestones beyond retirement. Ceder said households were postponing priorities that can provide financial security, including emergency savings, debt reduction and retirement contributions. Those decisions can then affect plans for home ownership, education and starting a family.
The survey produced a notable contrast among people who have already retired. Goldman Sachs found that 44% of retirees surveyed had left work earlier than planned. Among respondents who retired early, 45% did so one to three years ahead of expectations, while 26% retired four to five years earlier and 14% left six to 10 years sooner.
Inflation and Housing Costs Raise the Savings Barrier
The pressure identified by Goldman comes as US households continue to face elevated living and borrowing costs. The Bureau of Labor Statistics reported that consumer prices were 3.4% higher in August 2026 than a year earlier. Energy prices were up 16.3% over the same period, while shelter costs increased 3.0%.
Housing finance adds another obstacle for younger workers attempting to build wealth. Freddie Mac reported that the average US 30-year fixed mortgage rate reached 7.03% on September 24, up from 6.71% at the beginning of the month.
Those conditions help explain why retirement contributions can lose priority even among people who understand the value of saving. When more income is directed toward rent, mortgages, transport, food and other immediate expenses, workers have less room to build emergency funds or invest for decades ahead.
There may also be consequences for employers. If workers increasingly evaluate jobs according to whether the salary can cover current expenses while supporting savings, compensation and financial benefits could become more important retention factors. Goldman found 34% of respondents would consider higher earnings a primary reason to change jobs.
Retirement Confidence Now Depends on Near-Term Costs
The central issue for younger workers is whether additional employment remains a temporary response to higher prices or becomes a lasting feature of household finances.
Goldman’s data suggests the immediate challenge is not simply persuading workers to think about retirement. Many are already balancing retirement against expenses they cannot easily postpone.
Employers and retirement providers will therefore be watching whether savings rates recover as inflation changes and borrowing costs move. For Gen Z and millennials, the ability to convert additional earnings into savings, rather than using them entirely for current bills, could determine whether today’s affordability pressures have consequences lasting well beyond the present economic cycle.
