The constant refrain in recent years has been that homeownership is out of reach for many. Between housing costs rising, obstacles with insurance, and inflation not slowing down, young people are struggling to save the money needed to get started in their home journey and older folks feel priced out of the market.

Is there an end in sight? Time will tell, but a new report from Goldman Sachs found that about 4 in 10 U.S. workers—from Gen Z to Gen X—are living paycheck to paycheck, and nearly three-quarters struggle to save for retirement. If nothing changes, more than half of all workers could be living paycheck to paycheck by 2033.

Because of this, Goldman Sachs experts recommended in their research that financial advisers should adjust their direction accordingly, especially when it comes to saving for retirement.

And if you’re a homeowner, this could mean needing to save a lot more money than you originally expected to.

According to the 2025 Goldman Sachs Asset Management Retirement Survey & Insights report titled, “New Economics of Retirement,” the effects of what they are calling the current “financial vortex” are making it difficult for Americans of any age to achieve certain life goals, like buying a home or saving enough for retirement.

For instance, the report found that from 2000 to 2025, the cost of homeownership as a share of income jumped from 33% to 51%, a staggering metric that clearly highlights how prices have skyrocketed.

“The cost of major life events is taking up a larger percentage of household income, a trend that affects workers at the lowest level of income as well as the highest,” explains Greg Wilson, head of retirement and co-head of Americas Third-Party Wealth with Goldman Sachs.

But homeownership costs aren’t the only number going up. Rent has risen from 21% to 29%, health care from 10% to 16%, and the cost of private college shifting a staggering amount, from 65% to 85%.

Rising prices have made saving for retirement more challenging than ever. Among those surveyed, monthly financial expenses were the top reason respondents cited as affecting their ability to save.

In the past five years, the cost of homeownership has jumped 26%, and for seniors who have entered retirement, the pressure is on.

Nearly 22 million seniors are estimated to live on Social Security alone, according to a June 2025 study from The Senior Citizens League, which also estimates that nearly three-quarters of all seniors rely on Social Security for at least half their income. Recent analysis by Realtor.com® found that currently, there are only 10 states where seniors can afford their housing expenses using the benefit alone—but only if their mortgage was already paid off.

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Therefore, having adequate funds in retirement is critical, and as the survey points out, those who have started planning already feel safer.

The report found that those with access to an employer-sponsored retirement plan boast a 29% higher savings-to-income ratio, while retirees who followed a personalized plan held 27% more retirement savings than those who didn’t.

And that is the key. If you’re a homeowner, planning for retirement means personalizing your goals around paying housing costs, and understanding what those might be.

Many people plan retirement based on how long older family members lived or average life expectancy—but life expectancy has increased. In 2000, retirees could expect to live about 17.5 years after retiring. By 2023, that number rose to 19.2 years, and projections suggest it could reach 20 to 21 years by 2033–43.

Additionally, looking at data from the U.S. Bureau of Labor Statistics, people aged 65 and older have seen their spending grow by about 3.6% per year from 2000 to 2023.

This means past retirement benchmarks may no longer be enough.

For example, the “4% rule” has guided retirement for decades. But recently, its inventor says it’s outdated and actually adjusted the rate by which retirees spend their funds to 4.7%.

This was echoed in the Sachs report, which found 58% of the respondents were afraid that they’ll outlive their savings.

Obviously, the short answer is the obvious one: Save more money.

But how is that possible, given the state of things?

Sachs recommends expanding access to 401(k) plans, which its research shows helps employees save consistently.

Currently, about 75% of Americans have access to an employer-sponsored plan. However, according to a new study by Capitalize and the Center for Retirement Research at Boston College, $2.1 trillion is sitting idle in 401(k) accounts with an average balance of $66,691, as many savers have lost track of these accounts because of job changes, rollovers, or lack of portability.

So, you may be sitting on money right now that can help you get by.

Sachs also recommends new solutions like pooled employer plans and state “auto-IRAs” to help overcome cost and complexity barriers and make retirement saving easier for more workers.

And if you’re a parent, there’s something you can do for your children right now to get them started as well. A new tax law created early-savings accounts (sometimes called “Trump Accounts”) to help parents or employers save for a child’s future. If used to start a portfolio early, the compounding growth can be huge.

For example, contributing $500 a year from age 1 to 20 could grow to about $21,000 by age 21. If left invested until retirement, this could become roughly $340,000 by age 65—about 14% more than someone who starts saving at 21.