To retire comfortably, 48% of U.S. workers say they’ll need at least $1 million in savings, up from 37% in 2024, and only 27% expect to actually reach that goal, according to a Dec. 15 report from Betterment at Work, a provider of 401(k) plans.
Workers reported record-high anxiety around the gap between their retirement expectations and the reality of their savings, highlighting the growing challenge of retirement readiness. Even so, 71% of workers said they still feel at least somewhat confident they’ll be able to retire comfortably.
“It’s striking that even as financial anxiety reaches an all-time high, Americans’ belief in their long-term financial future hasn’t faltered,” Sarah Levy, CEO of Betterment, said in a statement.
“That optimism is encouraging, but employers play a critical role in turning it into real progress,” Levy added. “Companies that invest in their employees’ financial wellbeing help transform confidence into concrete outcomes and create lasting value for their teams.”
In a survey of 1,000 workers, financial anxiety has steadily increased during the past five years, climbing from 71% in 2022 to 90% in 2025. The top stressors included inflation (65%), credit card debt (40%) and housing costs (31%).
With the gap in retirement expectations versus reality, 54% of workers said they’ve considered delaying retirement. Women were more likely to say so than men, at 58% versus 48%.
Across age cohorts, Generation Z employees expressed the most confidence about retirement (88%), though they’re the most anxious about day-to-day finances (73%). On the other hand, Gen X workers were least confident (61%) about being able to save enough for retirement, and baby boomers were most likely to consider delaying retirement.
Although more than three-quarters of employers believe their employees are prepared for retirement, less than half of workers think so, according to a PNC Bank report. Gen Z workers were more likely to feel confident about their ability to meet their retirement goals, while millennials, Gen X and baby boomers felt less so.
Across generations, most workers believe they could work until retirement and still not have enough saved to meet their needs, according to a Transamerica Institute report. Workers expressed concerns about paying off debt, saving for a major life event, building emergency savings and saving for retirement, the report found.
