Survey reveals the unexpected amount almost half of all Americans want for retirement
The figure is not a small one, and many believe that they won't be able to achieve that goal.
Dec. 17 2025, Published 9:32 a.m. ET
Americans from all walks of life and income groups plan their retirement in different ways, but the money they have saved decides how things pan out. But even as people are living paycheck to paycheck and rising expenses are eating into savings, the amount they need for retirement has gone up because of rising prices. Turns out that almost half of all Americans feel that anything less than a million dollars is not going to be enough for retirement.
According to a recent survey of 1,000 full-time employees by the fintech Betterment, 48% believe that they need more than $1 million to live a comfortable life after retirement. It's a surge of 11 percentage points from last year, which might have been triggered by financial anxiety, according to Betterment CEO Sarah Levy. The problem is that a lot of people do not believe that they will be able to make that kind of money before hanging up their boots.
“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 as per a report in The Independent. "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," she added.
Answers to the question varied as per the ages of the participants, with Gen Z being the most confident in achieving that goal. They also have more time to do it than the rest. Gen X turned out to be the least confident in accumulating a million dollars by the time they retire. Millennials are likely to change jobs to get better benefits, while older individuals are pushing back their retirement as the market is currently quite volatile.
“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.
The survey also found that nine out of 10 employees feel financial anxiety, and that the figure has risen 19 percentage points over the past three years. Individuals also seem to be building up emergency funds to cover unexpected expenses. As per Betterment, 68% of the people surveyed had an emergency fund in place, which is a five-year high. It also noted that women were more likely to delay their retirement in order to save up more funds.
Those thinking about retirement might also want to note some of the changes that will befall the 401(k) scheme. Beneficiaries can now deposit more money into their 401(k). The employee deferral limit will be $24,500 from 2026, which is a thousand bucks more than the $23,500 in 2025. For those aged 50 or older, the catch-up contribution will increase from $7,500 to $8,000. However, the super catch-up contribution for beneficiaries in the age bracket of 60 to 63 will remain at $11,250.
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