8 in 10 Gen Z Workers Have a Side Job. It Is Not a Retirement Plan.

Knowledge Snapshot

• 80% of Gen Z respondents had engaged in additional work outside their primary job, the highest share of any generation in Goldman Sachs Asset Management’s 2026 retirement survey.
• Across generations, 61% of workers said they engaged in additional work. Of those doing extra work, 71% said they did it out of financial need.
• Meanwhile, the share of respondents who increased retirement savings fell to 39%, down from 55% the prior year. The share who reduced savings rose from 8% to 14%.
• Side income can help when it is a bridge to a specific goal, with a plan and end date. Without those guardrails, it can become a treadmill, absorbed by recurring costs without changing retirement progress.

Quick Answer

A second job can be a reasonable way to cover a financial gap, build a cash cushion, or pay down debt. But extra income is not a retirement plan. If the money has no assigned purpose, or your retirement contributions keep shrinking while you work more, you may be earning extra without improving your long-term security.

The key question is not simply whether you have a side job. It is whether the income is taking you somewhere.

Why Trust This Article

This article draws on the Goldman Sachs Asset Management 2026 Retirement Survey & Insights Report, published September 30, 2026. The research surveyed 5,106 individuals in July 2026: 3,612 working individuals across generations and 1,494 retired individuals ages 45 to 75. Behavioral economics firm Escalent helped develop key questions and analyze behavioral characteristics.

There is an important limitation: this is company-sponsored research from Goldman Sachs Asset Management, which sells retirement and investment solutions. Its findings are useful context, not a guarantee of what every worker or household experiences.

Editorial Perspective: A Bridge or a Treadmill?

The side job itself is not the problem. The problem is side income with no destination.

A bridge is temporary, tied to a named goal, and has a review point or end date. You might take on extra work to pay down a high-interest balance, rebuild emergency savings, or cover a short-term income disruption. The goal is to use the additional cash flow to reach a more stable position, then reassess the hours.

A treadmill is different. The extra work becomes permanent, the money disappears into a larger monthly budget, and retirement saving gets no stronger. You are putting in more hours, but your future financial position may not be improving.

That distinction matters because income pressure and retirement planning can move in opposite directions at the same time. More people may be working outside their main jobs even as fewer say they are increasing retirement contributions.

The side-job test: Are you building a bridge?

Ask yourself these questions:

1. Can I name the goal? “More money” is not a goal. “Pay off this balance” or “build one month of essential expenses in savings” is clearer.
2. Do I know where the money goes? Decide in advance how much of your extra income goes to the goal, after accounting for work-related costs and any taxes you may owe.
3. Is there a review date? Choose a date to check progress and decide whether the extra hours are still worthwhile.
4. Does this plan protect retirement saving? If you have reduced contributions, consider whether there is a sustainable way to resume them, especially if your workplace plan offers matching contributions.
5. Can I see a stopping point? The end date may change, but there should be a reason to revisit the arrangement.

Mostly clear answers point toward a bridge. If the income is covering routine expenses month after month with no target, timeline, or change in retirement saving, you may be on the treadmill.

What the Survey Says About Work and Retirement

The survey found that 80% of Gen Z, 77% of Millennials, 57% of Gen X, and 37% of Boomers had engaged in additional work outside their primary job. Across generations, 61% reported doing additional work, and 71% of those workers said they did it out of financial need.

That pressure shows up in savings behavior, too. The share of respondents who increased retirement savings fell from 55% to 39%, a 16-percentage-point decline year over year. The share who reduced savings rose from 8% to 14%. Only 58% of retirement savers said they were on track or ahead of schedule, down from 68% in 2025.

The pressures are not hard to identify. Respondents most often cited housing costs and day-to-day living expenses, both at 31%, followed by debt payments at 27%. Nearly 70% said they had delayed a major financial goal. Across Gen Z, Millennials, and Gen X, 66% expected to delay retirement because of competing financial priorities.

These findings do not mean every side job is a sign of financial trouble, or that everyone working extra should stop. They do suggest that extra effort alone does not tell you whether your finances are improving. A second income can help stabilize this month’s cash flow while retirement contributions stall.

A plan can help turn extra income into progress

The survey also found that 64% of respondents had a personalized retirement plan. Among those with a plan, 72% believed they were on track or better, compared with 33% of those without one. In the prior 12 months, 46% of people with a plan increased savings, compared with 26% of people without one.

Those results show an association, not proof that having a plan alone caused people to save more. Still, planning gives you a practical way to connect today’s decisions with long-term needs. It can help clarify what to prioritize when every dollar seems to have a competing use.

If your work offers a retirement plan, review the contribution options and ask whether the employer provides a match. If you do freelance or contract work, learn which retirement options may fit your situation and what the tax and administrative responsibilities involve. Avoid making an investment choice solely because side income arrived. First decide what the money needs to accomplish.

What This Means for You

If you are taking on extra work, start with a simple cash-flow check:

• Calculate what the side work actually adds. Subtract related expenses and set aside money for any tax obligations that apply.
• Choose one near-term target. That could be a cash reserve, debt reduction, or another priority that would ease pressure on your monthly budget.
• Set a retirement floor. Identify a contribution level you can maintain while meeting essential expenses, then revisit it when your income or obligations change.
• Schedule a check-in. Compare your progress with your goal after a set period. If the goal is not moving, review the amount, the timeline, and whether the extra work is sustainable.
• Look for the underlying cash-flow gap. If extra income is repeatedly consumed by the same expenses, a spending review, debt plan, benefits check, or conversation with a qualified financial professional may help identify a more durable solution.

For example, imagine someone working extra shifts to build emergency savings. If the money goes into a separate savings account and the person has a target and review date, the work may serve as a bridge. If the extra pay is absorbed into everyday spending, the person may keep working without building savings or protecting retirement contributions. The difference is the destination, not the job title.

For more help with short-term reserves, see our article on how an emergency fund differs from a rainy day fund. If you want to make a goal easier to follow, read how to automate savings. Automation can support a plan, but it cannot decide which goal deserves the money first.

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A second job should have a job of its own. Give the income a purpose, a destination, and a date to review whether the arrangement is still working. Extra work may help solve a cash-flow problem. Retirement planning still needs its own deliberate steps.

FAQ: Gen Z Side Jobs and Retirement Savings

Does having a side job mean I am behind financially?

Not necessarily. People take on extra work for different reasons. The more useful question is whether the income is helping you meet a defined goal and whether your overall finances, including retirement saving, are moving in a direction you can sustain.

Should I use side-job income to save for retirement or pay off debt?

It depends on your interest rates, cash reserves, workplace benefits, and immediate needs. Compare the cost of your debt with the benefits and risks of saving, and consider whether your employer offers a retirement match. A financial professional can help you weigh competing priorities.

How can I keep extra income from disappearing into everyday spending?

Assign the money before it arrives. Set a specific amount or share for your chosen goal, and consider separating it from your everyday spending account. Review the plan regularly so it can adjust when income or expenses change.

What if I need the side job just to pay monthly bills?

That is a real cash-flow concern, not a personal failing. Track essential spending, debt payments, and the net income from the extra work. Then look for changes that could reduce the gap, such as reviewing bills, benefits, debt options, or work arrangements.

Do I have to stop side work once I reach my savings goal?

Not automatically. Reassess whether the hours still fit your health, schedule, and financial priorities. You might reduce hours, redirect the income to another goal, or continue if the work remains worthwhile.

Is a personalized retirement plan a guarantee that I will be on track?

No. A plan is a tool, not a promise. Its value depends on whether it reflects your circumstances and is updated when your income, expenses, goals, or retirement timeline changes.