Betterment at Work, a provider of modern, scalable 401(k) plans for growing businesses, today launched the fifth installment of its annual Retirement Readiness Report. The report reveals that nearly half (48%) of U.S. workers believe they’ll need “at least $1 million to retire comfortably—up from 37% in 2024.”
After five years of tracking employee financial wellness through “inflation shocks, policy shifts, and market volatility, the 2025 findings paint a nuanced picture of financial resilience.”
Workers across generations are grappling with “record levels of day-to-day stress.”
But retirement outlooks vary depending “on who you ask—Gen Z’s optimism contrasts with Gen X’s growing caution, while women and Boomers are more likely to consider delaying retirement.”
These generational and gender divides reflect a tension: a disconnect between what employees “expect from their financial futures and what their current savings behaviors can deliver.”
There’s a clear opportunity for employers to “help their employees build both retirement security and financial confidence.”
Key findings from Betterment at Work’s 2025 Retirement Readiness Report include:
- Financial anxiety is at an all-time high, but long-term optimism endures.Financial anxiety among workers has steadily climbed over the last 5 years, from 71% in 2022 to 90% in 2025.
- Inflation (65%), credit card debt (40%), and housing costs (31%) are the top stressors.
- Despite this, 71% still feel at least somewhat confident they’ll be able to retire comfortably.
- Retirement expectations soar past savings reality.48% of workers expect to need over $1 million to retire, up from 37% in 2024, and only 27% expect to actually reach that goal.
- 54% of workers have considered delaying retirement, with higher rates among women (58%) vs. 48% of men.
- Generational and gender gaps persist.Gen Z is the most confident about retirement (88%), yet the most anxious about day-to-day finances (73%).
- Gen X is the least confident (61%) they’ll have enough saved to retire.
Men are more confident than women in both retirement knowledge (89% vs. 69%) and savings confidence (81% vs. 62%). - Student loan debt continues to weigh on employees.54% of employees say student debt contributes significantly to their financial anxiety.
- 85% of borrowers would be more likely to accept a job from an employer offering student loan repayment support.
- Over half (54%) have made or plan to make changes to their repayment strategies in light of the One Big Beautiful Bill Act.
Sarah Levy, CEO of Betterment said:
“It’s striking that even as financial anxiety reaches an all-time high, Americans’ belief in their long-term financial future hasn’t faltered. 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.”
An online survey was conducted with “a panel of potential respondents from August 20, 2025 to August 29, 2025.”
The survey was completed by a total of “1,000 respondents who were full-time employees who were not self-employed.”
A follow up survey of open ended questions was “completed by100 respondents between August 29, 2025 and September 5, 2025.”
The same screeners were “applied.”
The sample was provided by Sago, a research panel company. All respondents were “invited to take the survey via an email invitation.”
Panel respondents were incentivized to “participate via the panel’s points program, regardless of positive or negative feedback.”
