Even six-figure earners are living paycheck to paycheck as prices soar — why a high income doesn’t cut it anymore
While many people might assume a six-figure salary would buy peace of mind, for a growing number of Americans, it’s barely buying time until the next paycheck.
That’s according to a new Goldman Sachs report that finds even top earners are struggling to stay ahead of their bills. (1) A quarter of workers earning more than $100,000 a year say they’re living paycheck to paycheck, and surprisingly, that percentage jumps significantly — to 41% — for those making between $300,000 and $500,000, and to 40% for those making more than $500,000.
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“A meaningful share of higher earners also report living paycheck to paycheck or making only limited progress toward long-term financial goals, underscoring that elevated expenses, debt burdens, and lifestyle inflation can erode savings capacity across the income spectrum,” the report’s authors write.
That might sound absurd until you consider how much life now costs. Goldman warns that even high earners are trapped in a “financial vortex,” where housing, child care, and health care swallow a rising share of take-home pay. The firm predicts that by 2033, 55% of U.S. workers will be living paycheck to paycheck.
Here’s what’s behind this surprising statistic, and what people can do to start living within their means.
When keeping up becomes a financial trap
Money, for many high earners, has become less about security and more about signaling. Economists call it “social comparison,” the quiet pressure to keep pace with peers whose lifestyles broadcast success on Instagram or in the school pickup line. (2) That pressure doesn’t fade with income, but tends to scale up.
It’s also easier than ever to lose track of what’s real. Easy credit, buy-now-pay-later platforms, and same-day delivery all flatten the sense of cost, making spending frictionless. Goldman’s data suggests high earners are especially vulnerable to a kind of invisible debt build-up because they can qualify for more credit and carry it longer without noticing.
“The impact on retirement saving may be lower contribution rates, increased likelihood of pauses or loans, and delayed retirement timelines,” the report said. “Importantly, these effects may be broadly felt, regardless of income level.”
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