Americans’ retirement expectations are soaring—even as day-to-day financial stress hits record highs. Betterment at Work, a provider of scalable 401(k) plans, reveals in its fifth annual Retirement Readiness Report that 48% of U.S. workers now believe they’ll need at least $1 million to retire comfortably, up from 37% in 2024. Yet only 27% feel they are on track to reach that goal.
The findings highlight a growing disconnect between long-term aspirations and current savings behaviors, offering employers a clear opportunity to help employees build retirement security while reducing financial anxiety.
Financial Anxiety Hits New Heights
The report, which tracks employee financial wellness over five years, shows day-to-day stress at an all-time high:
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90% of workers report financial anxiety, up from 71% in 2022
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Top stressors include inflation (65%), credit card debt (40%), and housing costs (31%)
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Despite this, 71% still feel somewhat confident they’ll retire comfortably
“This tension—high anxiety paired with enduring optimism—presents a critical opening for employers to intervene,” said Sarah Levy, CEO of Betterment.
Generational and Gender Gaps in Retirement Outlook
Financial confidence and retirement preparedness vary widely across demographics:
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Gen Z: Most confident about retirement (88%) but highly anxious about day-to-day finances (73%)
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Gen X: Least confident (61%) about having enough saved
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Women vs. men: Women are more likely to consider delaying retirement (58% vs. 48%) and report lower retirement knowledge (69% vs. 89%) and savings confidence (62% vs. 81%)
These disparities underscore the need for tailored financial wellness programs that address specific employee groups’ concerns.
Student Loan Debt Remains a Major Burden
Student debt continues to weigh heavily on employees’ financial outlooks:
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54% say student debt contributes significantly to anxiety
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85% of borrowers would consider a job offering student loan repayment support
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More than half (54%) have changed or plan to change repayment strategies following the One Big Beautiful Bill Act
Turning Optimism Into Action
Betterment at Work emphasizes that employers can play a decisive role in bridging the gap between employee optimism and financial reality. Offering 401(k) education, student loan repayment programs, and financial wellness resources can help employees convert confidence into tangible progress.
“It’s striking that even as financial anxiety reaches an all-time high, Americans’ belief in their long-term financial future hasn’t faltered,” Levy said. “Companies that invest in their employees’ financial wellbeing create lasting value for their teams while helping workers achieve retirement security.”
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