Despite their current financial anxiety, U.S. workers are increasingly confident that they will be ready for retirement.

“After five years of tracking employee financial wellness through pandemic disruption, inflation shocks and market volatility, a surprising pattern has emerged,” according to the 2025 Retirement Readiness Report from Betterment at Work. “Faced with new market realities, American workers have developed a nuanced ability to feel financially stressed about their daily lives while remaining confident about their futures.”

Although financial anxiety has climbed from 71% in 2022 to 90% in 2025, retirement confidence has held steady at 71%, and 401(k) participation has surged to an all-time high of 91%.

“In some ways this dynamic aligns with the very American ideal of resilience in the face of adversity -- a steadfast belief that brighter times are ahead,” the report said. “Employees have learned to separate short-term pressures from long-term planning, accepting that they can struggle with credit card debt today while still building security for tomorrow.”

Among other significant findings:

  • Artificial intelligence users are more engaged, more anxious and more risk-forward. Only 22% of employees use AI tools for financial planning overall, but among these users. Sixty-eight percent say their financial wellness has improved in the last year vs. 41% of non-users.
  • Alternative assets no longer are niche in the client mindset. Nearly 9 in 10 workers are at least somewhat interested in including alternatives in their retirement accounts.
  • Gender confidence gaps are stark and persistent. Nine in 10 men feel at least somewhat confident in their retirement planning knowledge vs. 69% of women. In addition, 8 in 10 men are confident they will have enough saved vs. 62% of women.
  • Gen X is a critical, underserved segment. Only 61% of Gen X are at least somewhat confident in their retirement savings.
  • Retirement delay risk is widespread. Fifty-four percent of employees have considered delaying retirement because of inadequate savings.
  • Although emergency funds are more common, employees frequently use them. The share of employees with emergency funds rebounded to 68% in 2025, but 45% of those with emergency funds tapped them during the year, suggesting ongoing cash flow strain.
  • Advisors face a multigenerational expectations gap. Although nearly half of employees expect to need more than $1 million in retirement, just more than one-quarter expect to actually have that amount saved. This reveals a clear advisory opportunity around realistic planning and catch-up strategies.
Related: Over a third of savers worldwide expect to work part-time in retirement

Employers can use this information to help tailor benefit packages that better meet worker needs.           

“Though employers cannot control the macro factors impacting the broader economic outlook, there are multiple avenues for businesses to help lighten the financial load on their employees beyond salary increases,” the report concluded. “The growth in 401(k) matching programs is encouraging, and competitive benefits packages will increasingly include other financial assistance, such as employer-sponsored emergency funds and student loan debt support.”

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