Nearly half of US workers now believe they will need at least $1 million to retire comfortably, yet only 27% think they will actually get there, according to new research that reveals rising financial strain across the workforce.
The findings come from Betterment at Work’s 2025 Retirement Readiness Report, which paints a picture of growing anxiety, shifting expectations and a widening gap between long-term hopes and short-term financial reality. The survey shows that 48% of workers now believe they’ll need more than $1 million to retire, up sharply from 37% just a year ago. At the same time, 90% say they feel financially anxious, the highest level recorded in the report’s five-year history.
Inflation remains the biggest source of stress, cited by 65% of workers, followed by credit card debt (40%) and housing costs (31%). And yet, despite these pressures, 71% still say they feel at least somewhat confident they’ll be able to retire comfortably.
THE $1M RETIREMENT GAP
“It’s striking that even as financial anxiety reaches an all-time high, Americans’ belief in their long-term financial future hasn’t faltered,” said Sarah Levy, chief executive of Betterment. “That optimism is encouraging, but employers play a critical role in turning it into real progress.”
That optimism, however, sits uneasily alongside reality. While nearly half of workers now see seven figures as the baseline for retirement security, only about one in four believe their current savings will actually get them there. The result is a growing willingness to rethink retirement altogether.
More than half of workers (54%) say they have considered delaying retirement, with women far more likely to expect working longer than men (58% versus 48%). For many, retirement is no longer a fixed age or finish line, but something that may need to be postponed – or reshaped – entirely.
DIFFERING PRESSURES FOR DIFFERENT GENERATIONS
The report highlights stark generational contrasts. Gen Z workers are the most confident about retirement, with 88% believing they’ll be able to retire comfortably, yet they’re also the most anxious about day-to-day finances, with 73% reporting financial stress. High rents, student debt and early-career instability are weighing heavily, even as long-term optimism remains high.
Gen X, by contrast, appears the most uneasy. Only 61% believe they’ll have enough saved to retire, as midlife costs, caregiving responsibilities and limited time to recover from financial setbacks collide. Baby boomers are increasingly pragmatic, with many reassessing retirement timelines in response to market volatility, healthcare costs and the rising price of everyday essentials.
GENERATIONAL & GENDER GAPS
Gender gaps continue to shape retirement outcomes. Men report far greater confidence than women in both retirement knowledge (89% versus 69%) and savings confidence (81% versus 62%). These differences reflect long-standing inequalities in pay, career progression and unpaid caregiving, and help explain why women are more likely to expect delayed retirement.
For younger and mid-career workers, student loan debt remains a major source of financial stress. More than half of employees say student debt significantly contributes to their anxiety, and it’s increasingly influencing job choices. A striking 85% of borrowers say they’d be more likely to accept a role from an employer offering student loan repayment support, highlighting how closely financial benefits are tied to recruitment and retention.
Policy changes are also reshaping behaviour. More than half of workers say they’ve made – or plan to make – changes to their repayment strategies in response to the One Big Beautiful Bill Act, showing how quickly household finances respond to legislative shifts.
GUIDANCE FOR WORKERS AND EMPLOYERS
For many Americans, retirement planning feels daunting, especially when everyday expenses already stretch budgets thin. While individual effort can’t solve systemic challenges, small, consistent steps can still make a meaningful difference.
Maximising employer matches, gradually increasing contributions and tackling high-interest debt can all improve long-term outcomes. Flexibility matters too: phased retirement, part-time work or gradual career transitions may offer a more realistic path forward than chasing a single “magic number.”
Employers, meanwhile, are playing an increasingly central role in retirement security. Workers are looking beyond pay cheques to benefits that reduce stress and build confidence, such as automatic retirement enrolment, student loan assistance, emergency savings tools and clear financial education.
As the idea of a million-dollar retirement becomes both a benchmark and a burden, the report reveals a workforce caught between hope and reality. Americans still believe in a secure future – but without stronger support, that belief may not be enough to close the growing gap between what retirement costs and what many can afford.
Read or download the full report here.
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