Amid elevated inflation, policy shifts and market volatility, a growing number of Americans say they will need at least $1 million to retire comfortably, according to Betterment at Work’s fifth annual Retirement Readiness Report. Nearly half of U.S. workers now expect they’ll need to meet this threshold, up from 37% in 2024, yet only 27% believe they are likely to reach that goal.
The findings reflect rising financial stress across generations, though retirement outlooks vary. Gen Z is the most confident about retirement but reports the highest anxiety about day-to-day finances, while Gen X is the least confident in their ability to save enough for retirement. Men reported higher confidence than women in both retirement knowledge and savings, the survey found.
“Gen Z's optimism contrasts with Gen X's growing caution, while women and Boomers are more likely to consider delaying retirement,” the report noted. “These generational and gender divides reflect a broader tension: a growing disconnect between what employees expect from their financial futures and what their current savings behaviors can realistically deliver.”
Student loan debt is a significant contributor to financial anxiety. More than half of respondents said student debt significantly affects their financial stress, and 85% of borrowers indicated they’d be more likely to accept a job from an employer offering student loan repayment support.
Overall financial anxiety is at an all-time high, with 9 in 10 workers indicating worry about finances. Inflation, credit card debt and housing costs top the list of stressors. Despite this, nearly three-quarters of respondents said they are at least somewhat confident in their ability to retire comfortably.
"It's striking that even as financial anxiety reaches historic levels, Americans' belief in their long-term financial future hasn’t faltered," said Sarah Levy, CEO of Betterment. "That optimism is encouraging, but employers play a critical role in turning it into real progress. Companies that invest in their employees' financial wellbeing help transform confidence into concrete outcomes and create lasting value for their teams.
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