"There are profound gaps between what American workers say they need for a comfortable retirement and what they expect to have," said Deb Boyden, Head of US Defined Contribution at Schroders. "This could be from a lack of planning, or for many it might just be too hard to save and invest enough to reach their retirement goals. The fact that, once again, so few Americans nearing retirement are confident they have enough money speaks volumes about the work we still need to do.  All of us, from employers to advisors to our industry, must do more to make it easier for American workers to reach retirement security."

Anxiety about finances, retirement savings takes a toll

The findings of the study painted a picture of Americans with a lot of uncertainty and more than a little anxiety about their money situation.

The survey found that 69% of those ages 45 and up worry about money every day, on average, 1.9 hours a day, which adds up to 24 full days a year. More than half (59%), say they expect to have less than $500,000 saved, including 34% forecasting less than $250,000 in savings.

Millennials (ages 27-42) were even more concerned: 85% said they worry about money every day at 1.9 hours on average, adding up to 28 full days a year.  Millennial workers expect on average it will take about $1,300,000 to retire comfortably, but only 29% say they expect to reach $1,000,000 in retirement savings.

Related: 'How much will I need to retire?' Helping employees work their 401(k)s

In addition, 49% of millennials said they had lost sleep worrying about their financial situation (40% for workers 45 and up), 64% of millennials are concerned that financial stress will negatively affect their overall health (53% of workers 45 and up). Older workers were a bit more concerned about the performance of their retirement plans—half of them (50%) said their retirement plan performance in 2022 caused them anxiety (48% for millennials).

According to Joel Schiffman, head of Strategic Partnerships at Schroders, these concerns are leading workers to hold on to too much of their assets as cash. He said that millennials in the survey reported 33% of their retirement assets sitting in cash, with older workers not far behind, with 29% of retirement savings in cash. "When asked why they are holding so much cash in their retirement accounts, 62% of working millennials and 66% of older workers said it was because they are afraid of losing too much money if the stock market goes down," Schiffman said. "Fear isn't a retirement investment strategy for workers with time horizons that span decades. Those who develop and stick to a long-term plan will put themselves in the best position possible to enjoy a comfortable retirement."

A call for help

The survey found that millennials said family (38%), financial websites/publications (23%), and their financial advisor (22%) were the most helpful sources of financial advice during 2022.

When it came to older workers, 30% said the most helpful advice came from their financial advisor, followed by websites/publications (25%), and family (24%).

The survey also suggested that employees would like more help from their employers in this area. The survey showed that 56% of working millennials and 39% of older workers with workplace retirement plans said they wish they received more guidance from their employer on how to invest their workplace retirement plan in 2022.

"More needs to be done to improve education and help employees create asset allocation strategies that give them the confidence to stay the course through the market's ups and downs," Schiffman said. "Employers can encourage employees to save more and seek the advice of a financial advisor to set up a personalized plan that fits their financial situation and risk appetite. Companies can also provide comprehensive educational resources to strengthen their financial literacy and improve their retirement readiness.