8 in 10 Gen Z and millennials have two jobs to make ends meet, Goldman Sachs finds, as the affordability crisis 'crowds out' any retirement hopes

A stark new report from Goldman Sachs highlights a deepening financial crisis for younger generations, revealing that 80% of Gen Z and 77% of millennials are forced to take on secondary employment just to cover basic living expenses. As inflation persists and the cost of housing remains prohibitively high, the dream of a comfortable retirement is being systematically replaced by the immediate necessity of survival. This trend reflects a broader economic malaise where long-term financial planning is being sacrificed for short-term stability.

Data from the survey underscores the severity of the situation, with 76% of Gen Z and 73% of millennials stating they could not make ends meet without additional income. Chris Ceder, a senior retirement strategist at Goldman Sachs, noted that savings momentum is stalling, with the percentage of people increasing their retirement contributions dropping from 55% to 39%. Furthermore, 69% of Gen Z and 67% of millennials report that financial anxiety regarding debt and household costs significantly impairs their ability to focus on their primary professional responsibilities.

This economic pressure is not occurring in a vacuum; it follows years of pandemic-induced price shocks and a current environment where mortgage rates remain elevated. While the survey found that some retirees managed to exit the workforce earlier than planned, the current cohort of younger workers faces a much more precarious path. The traditional milestones of the American Dream—homeownership, family planning, and robust retirement savings—are increasingly viewed as unattainable luxuries rather than standard expectations for the modern workforce.

The ramifications of this shift are profound, as younger generations are forced to defer the very actions that provide long-term stability, such as emergency savings and debt reduction. This creates a cycle of vulnerability where the lack of a financial safety net makes individuals more susceptible to future economic shocks. Employers are also seeing the impact, as recruitment data from Monster indicates that job seekers are increasingly prioritizing salary and remote flexibility to combat the rising costs of commuting and daily living.

Looking ahead, experts warn that the 'crowding out' effect of current living costs will have lasting consequences on the wealth accumulation of younger demographics. As the focus shifts from building a future to managing the present, the structural integrity of retirement systems may face significant strain. Unless there is a substantial shift in wage growth or a cooling of the affordability crisis, the reliance on multiple income streams is likely to become a permanent fixture of the professional landscape for Gen Z and millennials.