Nearly half of US workers believe they need this amount of money to retire comfortably

‘Companies that invest in their employees' financial well-being help transform confidence into concrete outcomes and create lasting value for their teams,’ one expert said

Who wants to be a millionaire?

Nearly half the U.S. workforce, according to a retirement survey of 1,000 full-time employees by fintech Betterment, which found that 48 percent believe they need more than $1 million to retire comfortably.

That figure is up 11 percentage points from 2024, a jump that’s driven, in part, by anxiety about financial security, Betterment CEO Sarah Levy said in a statement.

“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. "That optimism is encouraging, but employers play a critical role in turning it into real progress. Companies that invest in their employees' financial well-being help transform confidence into concrete outcomes and create lasting value for their teams."

The survey found that optimism about retirement varied based on respondents’ age, and that a significant share of consumers are anxious about their finances

Some 27 percent of US full-time workers say they don’t think they’ll reach their retirement savings goal (Getty Images)

Anxious times

While almost half of employees believe they’ll need $1 million at retirement to live comfortably, only 27 percent believe they’ll actually accumulate that amount by the time they want to permanently clock out.

The disparity between what employees believe they need, and what they believe they can achieve, might be fueling persistent anxiety and generational differences in optimism about long-term financial stability.

Betterment found that nine out of 10 employees feel financial anxiety, and that the figure has risen 19 percentage points over the past three years.

Gen Z employees are the most confident about their retirement, with 88 percent expressing optimism. However, they also experience the highest rate - 73 percent - of anxiety about their daily finances, the study found.

A rise in rainy-day savers

Consumer anxiety seems to be driving a greater perceived need for increased retirement funds - but it’s also pushing individuals to build up emergency funds (money saved to cover those unexpected eventualities like home, car and medical costs).

Betterment found that 68 percent of employees have an emergency fund, which marks a five-year high.

Generation game

The study revealed marked differences in generational confidence about retirement, job benefits, and economic instability.

Gen Z is most confident about their retirement, but also the most stressed about their day-to-day finances. The research also found:

• Gen X feels the least prepared for retirement
• Millennials are likely to change jobs to get better benefits
• Boomers are pushing back their retirement dates because of market volatility.

Additionally, the study noted that women are more likely than men to delay 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,” Betterment noted.