Participants Are Less Optimistic About Reaching Savings Goals, Schwab Survey Finds

In 2025, retirement confidence has been lower than in past years, as inflation persisted, the average expected retirement age increased and fewer plan participants anticipated achieving their retirement savings goals, according to a new report from Charles Schwab & Co. Inc.

In its “2025 Workplace Survey 401(k) Plan Participants” report, the firm found 57% of participants surveyed considered inflation a top obstacle to achieving a comfortable retirement. The survey also reported an increase in the average expected retirement age, to 66 in 2025 from 65 in 2024. Additionally, more than one-third (34%) of participants reported feeling very likely to achieve their savings goals—down from 43% in 2024.

Schwab’s findings come as F&G Annuities & Life’s 2025 Retirement Reconsidered survey, also out this week, revealed that Americans older than 50 are continuing to delay or come out of retirement. Per F&G’s report, 48% of those surveyed worried that they would not have enough money in retirement, and 44% were worried about inflation’s impact on their retirement readiness. Seventy percent of those who had not yet retired said they are considering pushing back their retirement date, up from 68% in 2024 and 64% in 2023.

But despite reporting shaky confidence, only 11% of investors surveyed by Schwab said they have reduced their 401(k) contributions because of economic conditions. Instead, most are modifying their spending by reducing purchases (40%) and buying cheaper products (39%). Additionally, participants who have made changes to their 401(k)s have primarily shifted to more conservative investments.

“Inflation and market volatility remain top of mind, which can make it difficult to develop a long-term retirement strategy,” said Lee McAdoo, the managing director of Schwab Retirement Plan Solutions, in a statement. “It’s encouraging to see that most savers are prioritizing consistency in terms of their contribution rates and are largely avoiding dipping into their retirement savings—a positive sign that they are focused on their futures.”

Focusing on what employers can do to help their employees save, Schwab noted that 401(k)s and health insurance were reported as participants’ top “must have” benefits when considering a new job. Almost three-quarters (74%) of participants said they would not take a job that did not offer a 401(k) plan.

Schwab also reported that 57% of employers took action to help manage their participants’ financial stress, most commonly through increasing pay (33%). Fifteen percent of employers increased their 401(k) match, and 14% increased or added benefits. Health savings accounts, physical wellness resources and financial wellness resources were among the benefits most increased or added.

“We see employers playing a vital, expanding role in employees’ financial lives well beyond providing a paycheck,” said Marci Stewart, Schwab Workplace Financial Services’ director of client experience, in a statement. “While the outlook for inflation is cloudy and market volatility remains a part of life, workplace benefits, including holistic financial support, can provide a welcome sense of stability and confidence for employees.”

The proportion of total respondents who said they felt “very likely” to achieve their retirement savings goal dropped from 2024, but members of Generation Z, born between 1997 and 2012, remained most optimistic: 53% said they were very likely to achieve their goal, up from 50% who said the same last year. Meanwhile, members of Generation X, born between 1965 and 1980, saw the most drastic confidence drop this year—a 9-percentage-point decrease from 2024.

401(k) plans continue to be plan participants’ largest source of retirement income. This year, participants said they expected 45% of such income to come from their 401(k)—an increase from 43% one year ago. Fifty-five percent of retirement income is expected to come from multiple other sources besides 401(k)s, with older generations most likely to use a wider variety of methods.

Logica Research conducted the Charles Schwab survey of 1,100 retirement plan participants from April 30 through May 17. All participants worked for companies with at least 25 employees that had 401(k) plans and were contributing to their companies’ plans at the time the survey was conducted.