Betterment at Work, a leading 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 considerably 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 broader tension: a growing disconnect between what employees expect from their financial futures and what their current savings behaviors can realistically 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.

"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, 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."

Read or download the full report here.