"People are undoubtedly feeling a strain on their finances in the current landscape," Stokes said. "Between inflation and market declines, many are having a harder time saving and accumulating wealth. That in turn is likely impacting timelines, causing some to delay when they think they will have enough to retire comfortably."

Approximately 43% of respondents do not expect to be financially ready for retirement when the time arrives, and 45% said they can see a possible future when Social Security does not exist. Meanwhile, 33% of those surveyed believe that there is a better than 50% chance that they will outlive their savings. Of those with that concern, only 22% have put together a financial plan in response.

Overall, 25% of respondents said they anticipate retiring later than they had expected before the pandemic began. Top reasons for delaying retirement included wanting to continue to work and save money (59%); concerns about rising costs, including health care and unexpected medical costs (45%); and having had to dip into their retirement savings (24%).

"It's one of those questions on so many people's minds – how long should I expect to work in order to save enough for retirement?" said Christian Mitchell, executive vice president and chief customer officer at Northwestern Mutual, in a press release. "It's really difficult to answer because there are all kinds of considerations to factor in. But too many people grapple with it in a bubble. With greater clarity you can make a more confident call and getting professional advice can provide that clarity."

With Americans holding such low levels of confidence in their retirement preparedness, Stokes said financial advisors will play a critical role in helping workers to navigate a challenging period. Those respondents who work with an advisor expect to retire at 61 – three years earlier than the overall average.

Related: 80% of employees are unprepared for retirement: Employers should do more

Of the respondents, 62% said their financial planning needs improvement, but only 35% have sought the help of a financial advisor. There are signs of improvement in that area, including a finding that 18% of respondents said they did not have an advisor before the COVID-19 pandemic but have either started working with someone or plan to in the future.

"For advisors, it's an opportune time to help clients maintain a long-term view and recognize that this is just one snapshot in the overall timeline of their financial journeys," Stokes said. "Aim to help clients maintain discipline and stay on track, and remind them that the road to financial security doesn't move in a straight line."

Employers also need to be aware of their team members' mindset and take more steps to support them, Stokes said.

"For employers, it's an opportunity to prioritize the financial health of their employees and look for ways to offer tools and resources that make it easier for employees to build lifelong healthy financial habits, including saving for their future," she said.